WWF : Water Risk Filter 2020 Report | UPSC

WWF : Water Risk Filter 2020 Report | UPSC

      HEADLINES:

WWF identifies 100 cities, including 30 in India, facing ‘severe water risk’ by 2050

      WHY IN NEWS:

These cities would have to build ‘resilience’ if they were to manage such scarcity

SYLLABUS COVERED: GS 3: Reports

      LEARNING: 

For PRELIMS it is important to understand the new tool and the scenarios in this report .

For MAINS go through the key recommendations , try to device your own water policy after reading this content . Let us dive in !

      ISSUE: 

The cities would face a ‘grave water risk’ by 2050 due to a dramatic increase in their population percentage to 51 per cent by 2050, from 17 per cent in 2020

WWF WATER RISK FILTER 2020 REPORT

TITLE

  • Water Risk Scenarios – TCFD-Aligned Scenarios To Help Companies And Investors Turn Risk Into Resilience

PUBLISHED BY

  • World Wide Fund for Nature

HIGHLIGHTS

  • More than half of the identified cities are from China and India.
  • Cities needed to invest more in nature-based solutions .
  • They should enhance the health of river basins, watersheds and wetlands to build resilience to water risks.

To manage these initiatives, a public funding pool needed to be created in collaboration with the private sector to invest, reduce risk and generate returns.

  • Cities also needed to support greater global efforts to mitigate greenhouse gas emissions to avoid reaching these scenarios.
  • The future of India was in its cities.The need for sustainable growth would only increase with the increase in urbanisation.
  • To re-evolve and re-imagine their future, Indian cities needed to break away from the current set of issues by looking into developing more of nature-based solutions.

eWWF also launched an online tool called the WWF Water Risk Filter to help cities imagine future water risks and plan a better and sustainable future facilitating climate and water resilience.

  • A lot of planning becomes impossible owing to the lack of data.
  • The data available currently was at least a decade old and the reality of water availability and usage now was much different than that presented in the data.

REPORT ANALYSIS

  • Water is the lifeblood of our societies and economies; it is essential to all people and businesses.
  • However, 17 per cent of the global population and 10 per cent of the world’s GDP currently come from regions of high-water risk .
  • By 2050 this could increase to 51 per cent and 46 per cent respectively.

WWF : Water Risk Filter 2020 Report | UPSC

SOURCES : WWF.PANDA.ORG

  • Climate-related risks and opportunities are undeniably intertwined with those associated with water.
  • Other socio-economic drivers impact the supply and demand of water, such as regulatory, market and demographic changes.

The new WWF Water risk filter tool supports the integration of water into TCFD-aligned scenario analysis. 

  • This will strengthen the disclosure and assessment of companies’ resilience to future scenarios.

WHAT IS TCFD?

  • Recognizing the potential implications of climate change for the global financial system, the Task Force on Climate-related Financial Disclosures (TCFD).
  • It was established in 2015 by the Financial Stability Board.
  • The TCFD developed and released in 2017 a set of recommendations for corporate reporting on climate related financial risk and opportunities.

The objective is to better inform financial markets and investors.
 

  • One of its key recommendations is for corporates and financial institutions to conduct scenario analyses.

EFFECTIVE TCFD MEANS

  • It will help inform internal corporate decision-making on how to assess and manage climate-related risks and opportunities.

It will ensure that climate-related information disclosed by companies is consistent, comparable, relevant .

  • Alternatively , this will be useful for investors’ decision-making needs and processes.

OVERVIEW : WWF WATER RISK FILTER SCENARIOS

SCENARIO
A scenario is a hypothetical construct that describes a potential path of development that will lead to a particular outcome in the future.

  • It is critical to understand the key assumptions and uncertainties under different scenarios to be able to interpret the outputs.
  • Recognizing the importance of assessing and preparing for potential future water risks in a changing climate is very important .
  • Understanding current water risks using the water risk filter tool is a critical first step.

This first step is important for the successful implementation of the alliance for water stewardship (taking care) standard. 

  • With climate change exacerbating water risks, the new water risk filter scenarios will enable companies to better understand future climate-water risks.
  • Thus companies will be able to develop water stewardship strategies that are future-fit.
  • The report considers three distinct scenario’s .

OPTIMISTIC SCENARIOS

  • The optimistic scenarios represent a world with sustainable socio-economic development .

This will lead to an increase of global mean surface temperature of approximately 1.5°C by the end of the 21st century.

  • This represents the consequences and effects of climate and socio-economic changes on water resources.

CURRENT TREND SCENARIOS

  • The current trend scenarios represent a world similar to current socio-economic development trends.
  • This will be leading to an increase of global mean surface temperature of approximately 2°C by the end of the 21st century.

PESSIMISTIC SCENARIOS

  • The pessimistic scenarios represent a world with unequal and unstable socio-economic development.
  • This will be leading to an increase of global mean surface temperature of approximately 3.5°C by the end of the 21st century.

WWF : Water Risk Filter 2020 Report | UPSC

The WWF report listed 30 Indian cities among a total 100 that would face grave water risk by 2050. Photo: Sayantan Bera / CSE Physical, regulatory and reputational risks covered by the WWF Water Risk Filter .

SOURCES : WWF.PANDA.ORG

FROM RISK ASSESSMENT TO RESILIENCE PLANNING

  • The new WWF water risk filter scenarios to better understand future water risks to key agricultural commodities.
  • It will also help inform our long-term plans and strategy for climate and water resilience.

STEPS FROM RISK ASSESSMENT TO RESILIENCE PLANNING

  1. Assess and respond to current water risks
  2. Perform scenario analysis to assess future water risks
  3. Evaluate resilience under different scenarios to inform long-term planning and strategy
  4. Disclose on water risk, opportunites, and resilience

KEY RECOMMENDATIONS

  • Understand the assumptions behind scenarios
  • Identify the challenges for adaptation

Evaluate resilience to inform planning and strategy

  • Hope for the best, prepare for the worst
  • Context matters drivers of risk change
  • Scenario analysis is not a stand-alone excercise
  • Build resilience with Nature-based Solutions and collective action.

      IASbhai WINDUP: 

WWF : Water Risk Filter 2020 Report | UPSC

  • 30 Indian cities that will face a ‘grave water risk’ by 2050 according to WWF

The cities include global hubs such as Beijing, Jakarta, Johannesburg, Istanbul, Hong Kong, Mecca and Rio de Janeiro.

  • Water is the sector where most climate impacts are felt and where climate resilience must be developed.
  • Water offers a strong starting place for companies to develop a climate resilience plan.
  • Climate change is a water risk multiplier, amplifying existing risks and opportunities.
  • Scenario analysis is a very useful approach for understanding future water risks and opportunities, so that businesses can evaluate their resilience to a range of possible future states.
     SOURCES:  DownToEarth  | WWF : Water Risk Filter 2020 Report | UPSC

 

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