As of early 2026, the world has entered an era of “global water bankruptcy,” with 2.2 billion people lacking safe drinking water and 4 billion facing severe scarcity, according to the United Nations University. The Freshwater Challenge is working to combat this crisis of overdrawn water resources and ecosystem collapse by initiating large-scale restoration of aquatic ecosystems.

Global Water Bankruptcy

The United Nations University Institute for Water, Environment and Health (UNU-INWEH) argues that more common language, like “water crisis,” does not accurately represent the true nature of what is occurring in many places across the globe.

In its most recent report, UNU-INWEH offers updated and more refined recommendations for governments so that their guidelines suit the state of water in the world currently. The report serves as advice to policymakers to make water a top priority. With a focus on water, governments can promote cooperation to address critical challenges of safety, peace, liberty, land development and sustainability.

The main message of the report is that the world has entered the era of global water bankruptcy. This is a term that the United Nations (U.N.) adopted when updating its language to reflect the reality in places suffering from inequitable water access or no access to fresh water at all.

This problem continues to grow as excessive water use, land deterioration, deforestation, groundwater depletion and overall pollution worsen globally, which is what pushed the U.N. to adopt this new term.

The Journal of Water Resources Management originally developed the language, defining it as the persistent over-withdrawal of water relative to renewable inflows and safe levels of depletion, along with the resulting irreversible or prohibitively costly loss of water-related natural capital.

The Freshwater Challenge

Originally launched in 2023 at the U.N. Water Conference, the Freshwater Challenge has become the largest global initiative dedicated to restoring and protecting degraded rivers, lakes and wetlands. It aims to address the worsening water, climate and nature crises, which together are known as global water bankruptcy.

The Freshwater Challenge plans to serve impoverished countries by restoring rivers and wetlands, which will improve access to safe water and reduce climate risks. Indeed, by restoring ecosystems, the initiative will boost local food security, create sustainable livelihoods for the people and protect vulnerable communities from water-related hazards like droughts and floods, aligning with the U.N. Sustainable Development Goals (SDGs).

The initiative is targeting degraded freshwater sources, which are crucial for drinking water, sanitation and hygiene in developing areas. This will aid communities currently relying on unsafe water. Restoring inland waters will also help to boost fish populations and support local agriculture, which are essential for the nutrition of impoverished communities.

The Freshwater Challenge’s work to support these communities helps attract funding to implement improvements in national water management systems, in areas like Zambia and Sierra Leone, by bridging data gaps and improving water management. Overall, the initiative involves 54 countries and the European Union, which have joined together to reverse the breakdown of critical water systems.

Future Outlook

The initiative has announced a new goal to restore 300,000 kilometers of rivers and 350 million hectares of wetlands by 2030, essential for sustaining drinking water and sanitation, especially in regions with high water scarcity, like the Middle East and North Africa.

In addition to this restoration, the Freshwater Challenge plans to work on conservation for water-based ecosystems that are currently intact. By staying ahead of future problems, the initiative can strengthen the impact of its work.

Looking Ahead

Even though the state of water resources continues to weaken with the changing climate and human impact, the Freshwater Challenge is working to support people in need. The initiative will continue its efforts to protect the world’s freshwater resources through restoration, conservation and international cooperation.

– Megan McGrath

Megan is based in Verona, NJ, USA and focuses on Good News and Global Health for The Borgen Project.

Photo: Flickr