The Geoeconomics of Water

A heat wave tore through Europe in June. It came alongside official reports that El Nino- and ENSO-linked weather patterns are becoming more disruptive. Low water levels in the Rhine have raised concerns about the reliability of one of Europe’s most important commercial arteries, while water shortages in Turkmenistan point to similar pressures across Central Asia.

In geopolitics, stress on natural resources defines countries’ imperatives, vulnerabilities and strategic interests, and shapes operating environments for businesses worldwide. And few resources are as fundamental as water. Water underpins agriculture, energy production, transport corridors, industrial output, urban resilience and trade logistics, so when water levels fall, rivers become harder to navigate, ports lose efficiency, power systems come under pressure, and supply chains become more expensive and less predictable.