The insurance and banking sectors should prioritise water risk-based lending and investment models, given that the sustainability of water resources is regarded as a prerequisite for strategic financial stability, says a report by Turkiye Sigorta's Economic Research Directorate.
Approximately 70% of Turkiye's total water consumption is used in agriculture, reported the media organisation Anadolu Agency, citing a statement by Turkiye Sigorta. Furthermore, all energy processes, from thermal power plants to renewable energy investments, are linked to water consumption.
The “Water” report also says that events, such as drought, floods, inundations, and hail, increase the importance of parametric insurance products and agricultural risk management tools. Sustainable funds provide both financial returns and environmental benefits by focusing on investments in water efficiency, agricultural technologies, and food security.
Remote sensing, artificial intelligence, and data analytics-based water monitoring systems are increasing efficiency in both agricultural and urban water use. Transboundary waters, such as those in the Euphrates-Tigris, Nile, and Indus basins, necessitate new channels of diplomacy between countries. Therefore, the report states that Turkiye's regional water diplomacy strategies must be strengthened. The report states that increasing population density and urbanisation are straining urban water infrastructure, and emphasises that recycling, rainwater collection systems, and graywater use should be standard components of the cities of the future.
Mr Gurol Sami Ozer, Deputy General Manager of Treasury and Pension Operations at Turkiye Sigorta, said, “By 2025, the world has transformed the risk of water scarcity from an environmental problem into a strategic security issue. United Nations and World Bank data show that two-thirds of the world's population now lives under water stress. This clearly demonstrates that future global balances will revolve around water.
“The decline in the annual renewable water amount per capita in Turkiye to 1,400 m³ indicates that our country is on the verge of water stress. This necessitates the development of new strategies that centre water management in agricultural, industrial, and energy policies.”