Chatham House research explains why the ‘virtual water’ use hidden in supply chains is critical to sustainability.
When food and agricultural products are traded internationally, the direct and indirect water use associated with that trade results in a ‘water footprint’ – reflecting not only the freshwater needed to grow a crop, for instance, but also the water consumed in ancillary processes involved in bringing a product to market and diluting the pollution it causes. Income growth, rising populations and dietary change are increasing demand for water-intensive foods. Meanwhile, climate change, pollution and overexploitation of agricultural land are degrading water sources and depleting freshwater availability.
This situation is increasingly unsustainable, requiring major reform of food systems, agriculture and trade. Our paper explores these issues. It maps the expanding water footprints of international food and agriculture trade, outlines the challenges this presents for water security, environmental sustainability and international relations, and proposes ideas for improved water governance.
Specific recommendations include: (1) ensuring holistic and inclusive policy interventions are coordinated within governments and between producer/consumer countries; (2) reforming agricultural subsidies to reduce incentives for unsustainable water use, especially in water-stressed regions; (3) importer countries supporting sustainability measures in the overseas stages of supply chains, through disclosure and due diligence requirements; (4) tailoring sustainability measures to the needs of supplier countries; and (5) increasing plurilateral cooperation.