Still making waves: What have 10 years of the OECD Principles on Water Governance taught us? 

Over the last decade, floods caused global economic losses of more than USD 400 billion, while the frequency and duration of droughts has risen 30% since 2000. By 2030, global water demand will exceed available resources by 40% driven by the growing needs of agriculture, energy production, and urbanisation. To achieving universal access to safely managed drinking water, sanitation and basic hygiene by 2030, current rates of progress must increase fourfold.  

Fixing policies not just pipes 

Governments at all levels are taking action. But in a world reeling from a global pandemic and grappling with conflict, water shortages and hunger and where climate change accelerates, the goalposts are continuously shifting. 

We do not lack the infrastructure, innovation or technology needed to fix the problem. Instead, good governance is needed. The OECD Water Governance Initiative (WGI) has long highlighted that water crises are often first and foremost “governance” crises, leading to the adoption of the OECD Principles on Water Governance in 2015 and the creation of tools like water governance indicators, assessment guide, and local practices, inspiring a variety of stakeholders and levels of government.  

As the OECD Principles on Water Governance mark their 10^th anniversary, there is reason for optimism as we seek to build the more resilient water systems we need for the future.  

Waves of opportunities 

First, because water is becoming a global priority. For example, in 2023, the UN Water Conference convened the global community for the first time in almost 50 years to galvanise greater political support for water resilience and security, thereby announcing the creation of a Special Envoy for Water. In my own country, France, President Macron set up the One Water Summit in December 2024, gathering Heads of State to define ambitious roadmaps towards water security. 

Second, because of our deeper understanding of water systems. Beyond traditional watersheds, the concepts of precipitation-sheds and evaporation-sheds help us see how rainfall in one place can be affected by water from far away. This gives us a better understanding of blue water (like rivers and lakes) and green water (water in the soil that plants use), showing how water is connected across different areas, as highlighted by the Global Commission on the Economics of Water. Advances in knowledge have also paved the way for a “source to sea” approach, underlining the vital connection between freshwater management in hydrological basins and ocean and costal governance in cities. This territorial approach linking land and water has been at the core of the newly formed Ocean Rise and Coastal Resilience Coalition at the UN Ocean Conference 2025. 

Third, because new circular and nature-based solutions are gaining traction. Circularity is starting to find its way in water policies, beyond urban water cycle operations. For example, six out of ten Latin American countries surveyed by the OECD now explicitly include water resources in their circular economy policies. A growing number of companies, cities, and institutions are adopting a water positive paradigm, shifting from simply mitigating water impacts to actively restoring and regenerating water resources. Nature-based solutions, such as sponge cities, sustainable urban drainage systems, green-blue infrastructure, and flood-risk zoning, are helping urban areas better manage water extremes and protect vulnerable communities. 

Fourth, because financing tools and technologies are becoming widely available. The rise of blended finance and Environmental, Social, and Governance (ESG) investing is unlocking new financial resources from the private sector, while companies are also collaborating with governments on water reuse and pollution reduction, among others. The rapid uptake of generative artificial intelligence (AI) can also help enhance water efficiency, improve data availability and reduce water disasters – although this comes at a high freshwater consumption costs due to water-based cooling systems! 

And finally, because there is a growing recognition that water is part of the economic competitiveness agenda at national and global levels: Across all sectors of the economy, from agriculture and energy to manufacturing and services, access to clean, reliable, and sustainably managed water resources is essential for productivity, stability, and growth. In the EU alone, the water sector generates EUR 107 billion of value added and supports 1.7 million jobs. In a world facing growing resource constraints, water must be central to any economic agenda seeking long-term competitiveness and sustainable development. 

Turning from optimism to action 

Building on its multi-stakeholder nature, the wealth of knowledge and fruitful exchanges on water during these past ten years, the collaborative work with governments and its championship on governance, the OECD WGI stands ready to embrace these opportunities and carry the OECD Principles on Water Governance into the next decade. 

After 10 years, the OECD Principles are still making waves! The challenges ahead are immense, but we have seen enough to know that collective, innovative action can – and must – find tangible and innovative solutions, pushing the knowledge frontier and going outside the water box!  

OECD support for advancing water governance
The OECD marks a decade of its Principles on Water Governance with key resources such as Implementing the OECD Principles on Water Governance: Indicator Framework and Evolving Practices, A Handbook of What Works, and the Toolkit for Water Policies and Governance, providing practical tools and lessons for stronger water policy and implementation.