Urgent action needed now on water to secure Bangladesh’s economic success story, new report finds

Bangladesh’s economy faces major threats from the climate impacts, particularly on water, including threats to the country’s world-beating textile and rice sectors, according to a new report from WaterAid, Deloitte and the Resilient Water Accelerator (RWA). 

Bangladesh is emerging as one of the fastest growing economies with Real GDP growth reaching 7.1% in 2022 and 6% in 2023. However if action is not taken there may be considerable loss to agricultural GDP due to climate variability and extreme events by 2050 and cropland may shrink by 18% in Southern coastal Bangladesh and 6.5% nationally by 2040.

Last month’s catastrophic floodwaters submerged 11 districts across the country, impacting over 5 million people. Meanwhile, record temperatures were recorded in Bangladesh through April and May where temperatures soared above 43 degrees Celsius, scorching 80% of the country, drying up water sources and leaving thousands without power.

The newly published report, Bangladesh Water Security National Level Analysis deep dives into Bangladesh’s water security challenges, with the aim to make the case for urgent action to unlock the necessary financing and implement the solutions needed to secure Bangladesh's water future.

Key findings from the report include:

• Bangladesh will require an additional 14.92 billion cubic meters of freshwater annually by 2040 to meet rising demands - a 38% increase over 2020 levels.
• The agricultural sector will account for 64% of total water demand in 2040, with the Rangpur and Rajshahi divisions facing the highest future irrigation needs.
• Industrial water demand is projected to increase 360% by 2042, driven largely by growth in the garments and textile industries.
• Bangladesh faces an annual climate finance investment gap of $27-35 billion to fund critical adaptation projects, such as surface water treatment to boost water supplies and take the pressure off groundwater, and measures to improve industrial water use efficiency, outlined in the Bangladesh Delta Plan 2100 and National Adaptation Plan.

The report identifies 15 potential high-impact interventions for the RWA's consideration to transform the way in which Bangladesh manages its water sources / tackle Bangladesh’s water security issues head on, preventing the overuse of scarce resources, reducing the pollution of resources that are used, and so ensuring clean water is available all year round to meet the needs of all Bangladeshi citizens.

These interventions include surface water treatment, automatic water payment and distribution machines, sewage treatment plants, micro-irrigation and industrial effluent treatment - shortlisted based on criteria like climate impact, implementation ease and income potential. .

CEO of the Resilient Water Accelerator, Kate Hughes, said:

"This report lays bare the immense water security challenges confronting Bangladesh in the coming decades. But it also shows us a pathway to the green, resilient and prosperous economy its people deserve. Transformative investments and interventions across all highest water-using sectors can bridge the demand-supply gap  and build resilience to climate change.

“As we approach major global moment, from New York Climate Week this month to  COP29 in November, the time to act is now. The RWA and our partners stand ready to collaborate with the government, industries and communities to unlock the financing and implement the solutions needed to secure Bangladesh's water future."

The full National Level Analysis Report can be found at https://www.resilientwateraccelerator.org/news/bangladeshwatersecurity-nationallevelanalysis  

Notes to Editors

About the Resilient Water Accelerator

The Resilient Water Accelerator (RWA) is an innovative initiative dedicated to mobilising private and public finance for water projects that enhance climate resilience in vulnerable communities. By convening decision-makers, technical experts, and investors, the RWA facilitates the development of innovative water solutions and catalysing finance to address water risk and strengthen resilience. 

For media inquiries, please contact:

Jonathan Farr
Director of Policy and Communications,
Resilient Water Accelerator
[email protected]