Water is one of the most pressing challenges facing society today. If we continue along the same path, experts predict that the amount of water needed by humans could exceed the amount available by as much as 40 percent by 2030. This reality would have devastating consequences for economies and the lives of people worldwide.

Water is fundamental to the green economy because it is interwoven with so many sustainable development issues, such as health, food security, and poverty. In developing countries, access to water and sanitation services is a fundamental precondition for poverty reduction and economic progress. The multiple benefits of providing access to water and sanitation in terms of health, life expectancy, and the freeing of time for education and economic activities, are well known. Water is the common thread that connects the three critical issues of food, energy and climate change. Sustaining economic growth is only possible if we recognize the limited capacity of ecosystems to supply the water needed for agriculture, industry, energy generation and the production of the many goods and services demanded by society.

The green economy implies managing water in a way that catalyses social and economic development, whilst also safeguarding freshwater ecosystems and the services they provide.Water management must be improved in order to achieve food security, conserve ecosystems and reduce risks from water scarcity and pollution, natural disasters such as floods and droughts, and from climate change. Addressing the water challenge requires the removal of barriers and the creation of institutional mechanisms to facilitate the transfer and adoption of technology, water conservation, improved irrigation methods, the promotion of water reuse and efficiency improvements. To reverse the degradation of freshwater ecosystems, improved governance is needed which defines property rights, incorporates the full cost of water into decision making, and allocates water to the environment. There are many barriers to achieving a green economy, including lack of institutional capacity, information, and access to finance. A range of approaches for overcoming these barriers will be needed, from investments, capacity development, and structural reforms, to technology policies and incentive systems.