Climate change faces Spain to growing water stress. The droughts are increasingly long, the most intense rains, the most frequent heat waves and the most destructive fires. All this seriously affects our rivers, reservoirs and aquifers, and endangers not only the balance of nature, but also key activities for the country such as agriculture, energy production or tourism. The problem lies in the intensive use of the resource, as well as in the lack of sustainable water management. In 2022, 77% of the extracted was allocated to agricultural uses, much in areas exposed to severe water stress. In addition, much of the existing water infrastructure in Spain shows signs of aging, with leak losses, lack of digitalization and limited storage capacity. For this reality, the European Union (EU) has presented its new water resilience strategy, a roadmap with horizon in 2030 that seeks to guarantee sustainable access to water for people, the economy and ecosystems. Bet on flexible solutions and adapted to the specific conditions of each country, including among its priorities the protection of water masses, efficiency in the use of resource and modernization of networks, relying on technological innovation. It also recognizes the urgent need to mobilize private investment to cover the financing gap, estimated at 23,000 million euros per year in EU as a whole (0.1% of GDP). In the case of Spain, the country must multiply by three its current investment level to guarantee its water resilience. As highlighted in a recent work by BBVA Research, at least 6,000 million euros will be necessary during the next decade, compared to the 2,000 invested in the period between 2023 and 2024, even exceeding the historical levels reached in 2007. Spain must position itself as one of the most compromised actors given its high exposure to climatic risks. Beyond an environmental challenge, water represents a strategic opportunity for economic development, as a engine of modernization, employment and competitiveness through an ambitious, transverse and long -term water policy. Investing in water -related technologies, improving the efficiency of use and modernizing infrastructure would allow to generate employment, reduce costs and strengthen international competitiveness, in a context of growing global water tension. Strengthening resilience against water stress is no longer an option: it is an urgent need that requires political leadership to promote measures that promote public and private investment commitment and guarantee the efficiency of use of a scarce and essential resource for the future of society. Virginia Marcos, Laura Martínez and Pilar Mas, of BBVA Research.
