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Green and Blue Water: Unpacking the Economics of Water

The Global Commission on the Economics of Water recently released its report highlighting the critical role of ‘Green water’ and ‘Blue water’ in shaping the future of climate, ecosystems, and the global economy. Understanding these two forms of water helps us recognize their importance in maintaining environmental balance and addressing water-related challenges.


Green Water: Moisture in Soils and Vegetation

Green water refers to the moisture retained in soil and plants—an essential part of the hydrologic cycle.

  • It is absorbed by plant roots, used for growth, and released back into the atmosphere through transpiration.

  • This moisture is responsible for generating rainfall and contributes to climate regulation, thus playing a crucial role in maintaining ecosystems and agriculture.

  • Beyond environmental benefits, green water ensures food security and promotes economic stability by supporting crop production.


Blue Water: Surface and Groundwater

Blue water consists of surface water (such as rivers, lakes, and reservoirs) and groundwater stored in aquifers.

  • It is primarily replenished by precipitation and is used for human consumption, industrial purposes, and irrigation.

  • Blue water systems are vital for maintaining biodiversity, supporting drinking water supply, and ensuring the availability of water for energy production.


Why Green and Blue Water Matter

The report emphasizes that both green and blue water are interconnected and indispensable for sustaining life and the economy. Disruptions in one system affect the other, resulting in water scarcity, crop failures, or economic instability. Understanding and managing these resources effectively is essential for mitigating climate risks and ensuring sustainable water use.


Conclusion

The Global Commission’s report underlines the need to shift focus beyond traditional water management practices. A more integrated approach is required to balance green and blue water systems to secure a sustainable future. Governments, businesses, and communities must work together to ensure the equitable use of both resources.



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