Systemic Infrastructure Attacks Push Ukraine Into Its Deepest Humanitarian Emergency Yet

Systemic Infrastructure Attacks Push Ukraine Into Its Deepest Humanitarian Emergency Yet

Andrii Melnyk, Permanent Representative of Ukraine to the UN, briefs the United Nations Security Council meeting on the maintenance of peace and security of Ukraine. Credit: UN Photo/Evan Schneider

By Oritro Karim
UNITED NATIONS, Jan 23 2026 – Nearly four years into Russia’s full-scale invasion, Ukraine faces another winter marked by widespread humanitarian suffering and continued indiscriminate attacks. The final months of 2025 were particularly volatile, characterized by routine bombardment of densely populated areas and repeated strikes on residential neighborhoods, critical civilian infrastructure, and humanitarian facilities. As hostilities expanded into new territories over the past year, humanitarian needs grew sharply, with many war-torn communities residing in uninhabitable areas.

According to figures from the Office of the United Nations High Commissioner for Human Rights (OHCHR), at least 55,600 civilians have been killed or injured since the wake of the full-scale invasion, with 157 civilians killed and 888 injured across Ukraine and Russian Federation-occupied areas in the final months of 2025 alone. Additionally, The United Nations High Commissioner for Refugees (UNHCR) reports that over 3.7 million people have been internally displaced since the invasion.

Additional figures from OHCHR indicate that 2025 marked the deadliest year for civilians since the start of the full-scale invasion, with the United Nations Human Rights Monitoring Mission in Ukraine (HRMMU) reporting that 2,514 civilians were killed and 12,142 were injured as a direct result of conflict-related violence. This marks a 31 percent increase from 2024.

“The 31 per cent increase in civilian casualties compared with 2024 represents a marked deterioration in the protection of civilians,” said Danielle Bell, head of HRMMU. “Our monitoring shows that this rise was driven not only by intensified hostilities along the frontline, but also by the expanded use of long-range weapons, which exposed civilians across the country to heightened risk.”

The Office for the Coordination of Humanitarian Affairs (OCHA) reports that roughly 10.8 million people across Ukraine are in urgent need of humanitarian assistance, with 3.6 million identified as particularly vulnerable and prioritized in relief operations. OCHA underscores the exacerbation of humanitarian conditions over the past few months, noting that front-line areas and northern border regions face higher rates of military shelling, destruction of civilian infrastructure, mass civilian displacement, and repeated disruptions to essential services.

Civilians residing in Russian Federation-occupied zones remain largely cut off from essential services and protection measures, facing heightened risks of serious human rights violations.

According to Matthias Schmale, The UN Human Coordinator for Ukraine, the nation is currently in the midst of a severe protection crisis, marked by rapid shrinking of humanitarian resources, consistent escalations of insecurity, and no signs that 2026 will be safer for civilians or humanitarian aid personnel. “The nature of warfare is evolving: more drone attacks and long-range strikes increase risks for civilians and humanitarians, while causing systematic damage to energy, water and other essential services,” said Schmale.

The first few weeks of 2026 saw a sharp escalation in targeted attacks on civilian infrastructure, particularly water and energy systems. According to figures from the Global Center for the Responsibility to Protect, between January 8 and 9, Russian authorities launched 242 drones and 36 missiles toward Ukraine. These attacks struck the port city of Odesa, disrupting electricity and water supplies there and in the cities of Dnipro and Zaporizhzhia. The strikes also crippled mobile communications and public transport, prompting the mayor of Dnipro to declare a state of emergency.

Ukrainian President Volodymyr Zelensky reported that Russia had launched roughly 1,300 drones between January 11 and 18 alone. For the following two days, more than 300 drones struck the Kharkiv, Zaporizhzhia, Sumy, Dnipro, Odesa, and Khmelnytskyi regions, killing two civilians and injuring dozens.

On January 19, the Russian Federation launched a series of attacks on energy facilities in Ukraine, shutting down heating and electricity in numerous major urban areas, including Odesa and Kyiv. The mayor of Kyiv informed reporters that approximately 5,635 multi-story residential buildings were left without heating the following morning, 80 percent of which had only gained back access to heating after prolonged outages caused by a similar attack on January 9.

“Civilians are bearing the brunt of these attacks. They can only be described as cruel. They must stop. Targeting civilians and civilian infrastructure is a clear breach of the rules of warfare,” said UN Human Rights Chief Volker Türk. According to figures from OHCHR, hundreds of thousands of families across Ukraine lack access to heating—an especially dire development as freezing temperatures persist. Numerous communities in Kyiv also lack access to water, which has disastrous consequences for the most vulnerable, including children, the elderly, and persons with disabilities.

“For people in Druzhkivka and in many communities along the front line, daily life is overshadowed by violence and attempts to survive. A strict curfew means they can only go outside for a few hours a day, timing their lives around shelling patterns and the increased risk of drone attacks. They face hard choices: to flee for safety, leaving their homes and lives behind, or remain under constant shelling,” Schmale added.

The UN’s Ukraine office underscored that the consequences for civilians will be long-lasting, even when they reach a definitive end to hostilities. They noted that the war’s impact will “long outlive the current emergency and humanitarian phase.” Psycho-social harm is widespread, with severe mental health needs reported among adults, children, former combatants, and their families- many of whom have endured displacement, the damaging or destruction of their homes, and repeated exposure to explosions and shelling.

The strain on Ukraine’s health and education systems compounds these effects, with UN Ukraine warning that “fractures in social cohesion” will shape the country for years to come.

In response, the UN and its partners launched the 2026 Humanitarian Needs and Response Plan to provide life-saving support to affected communities, aiming to reach 4.1 million people in 2026. The plan includes operations to deliver food, healthcare, protection services, cash assistance, and other essential needs to besieged communities, calling for USD $2.3 billion.

“I urge all humanitarian, development and governmental partners to work together around our shared values and key identified strategic priorities, respecting the distinct role of principled humanitarian action and recognizing where others must lead,” said Schmale.

He added: “We ask our donors to sustain flexible, predictable funding so that we can respond rapidly to new shocks while maintaining essential services for those who cannot yet stand on their own feet. Only together we can ensure that the most vulnerable, like the family I met in Druzhkivka, receive timely assistance.”

IPS UN Bureau Report

 


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Big Nature-Based Finance Turnaround Needed to Restore, Protect Ecosystems

Two men at a pond wash and bath in the shadow of wind energy in West Bengal Country, India. Credit: Climate Visuals

Two men at a pond wash and bathe in the shadow of wind energy in West Bengal Country, India. Credit: Climate Visuals

By Umar Manzoor Shah
NAIROBI & SRINAGAR, India, Jan 22 2026 – The world is pouring trillions of dollars each year into activities that destroy nature while investing only a fraction of that amount in protecting and restoring the ecosystems on which economies depend, according to a new United Nations report released on today  (January 22).

The State of Finance for Nature 2026 report by the United Nations Environment Programme finds that finance flows directly harmful to nature reached USD 7.3 trillion in 2023. By contrast, investment in nature-based solutions amounted to just USD 220 billion in the same year. The imbalance means that for every dollar invested in protecting nature, more than USD 30 is spent degrading it.

“Globally, finance flows continue to be heavily skewed toward negative activities, which threaten ecosystems, economies and human well-being,” the report titled Nature in the red. Powering the trillion dollar nature transition economy says. Nearly half of global economic output depends moderately or highly on nature, yet current financial systems continue to erode what the authors describe as humanity’s collective nature bank account.

Nathalie Olsen of the Climate Finance Unit at UNEP  and the report’s lead author said that the barriers to reforming environmentally harmful subsidies are primarily political and structural, rather than economic.

“Our report identifies several key challenges in this regard. On the political front, entrenched interests pose a significant obstacle. Many harmful subsidies benefit powerful industries, such as fossil fuels and industrial agriculture, which actively resist change,” she said in an exclusive interview with IPS.

An ex-coal mine reworked as North Macedonia’s first large solar plant. Credit: WeBalkans EU/Climate Visuals

An ex-coal mine reworked as North Macedonia’s first large solar plant. Credit: WeBalkans EU/Climate Visuals

She added subsidy reform often leads to increased costs for consumers or producers in the short term, making such reforms politically unpopular, even when the long-term benefits are clear. Furthermore, many subsidies are deeply embedded within tax codes and budget structures, making them difficult to isolate and reform.

According to Olsen, structural challenges also play a crucial role. She says that the subsidies tend to create path dependency, establishing business models and infrastructure investments that lock in nature-negative practices.

“For instance, free or underpriced water can lead to the depletion of aquifers for irrigation, while fossil fuel subsidies artificially lower energy costs across the economy, including for products like fertilizers. Despite international commitments, such as the Global Biodiversity Framework (GBF) Target 18—which aims to reduce harmful incentives by at least USD 500 billion per year—implementation remains weak due to a lack of political will.”

Economically, however, the case for reform is strong, according to Olsen.  She says that reforming harmful subsidies would free up government resources for nature-positive investments and reduce economic risks.

“Currently, the USD 2.4 trillion in public environmentally harmful subsidies far exceeds the USD 220 billion invested in Nature-based Solutions.

Successful reform is feasible.

As highlighted in our Nature Transition X-Curve framework, it requires just transition strategies to support workers and businesses during the shift, clear communication about long-term economic benefits, concurrent investment in nature-positive alternatives, and gender-responsive approaches to ensure equitable outcomes,” She said.

Olsen  says that notable examples, such as Costa Rica’s fossil fuel levy financing reforestation and Denmark’s energy taxes supporting the transition to wind energy, demonstrate that reform is politically achievable when accompanied by visible investment in sustainable alternatives.

The report warns that business as usual will deepen ecosystem degradation and expose economies to rising risks. It argues that governments, businesses, consumers and investors still have the power to redirect capital flows and unlock resilience, equity and long-term growth if they act quickly.

In 2023, public and private finance that directly damaged nature totaled USD 7.3 trillion. About USD 2.4 trillion came from public sources, mostly in the form of subsidies that hurt the environment. These included USD 1.1 trillion for fossil fuels, about USD 400 billion each for agriculture and water use, and significant support for transport, construction and fisheries.

Private finance made up the larger share, at about USD 4.9 trillion. A small number of high-impact sectors received the majority of these flows. Utilities alone accounted for around USD 1.6 trillion, followed by industrials at USD 1.4 trillion, energy at about USD 700 billion and basic materials, including fertilizers and agricultural inputs, at a similar level.

The report notes that public subsidies and private investment often reinforce each other, locking capital into nature-negative sectors. Below-market prices for water, energy and other government-provided goods encourage overuse of natural resources and increase financial risks over time.

Against this backdrop, finance for nature-based solutions remains limited. Total global spending on nature-based solutions reached USD 220 billion in 2023, a modest five percent increase from the previous year. Public finance dominated, accounting for about USD 197 billion, or roughly 90 percent of the total.

Transition pathways to nature-positive outcomes. Credit: UNEP

Transition pathways to nature-positive outcomes. Credit: UNEP

Our Nature Transition X-Curve framework shows these tools work best when deployed together—combining regulatory “push” (disclosure, subsidy phase-out) with financial “pull” (de-risking, incentives). Over 730 organizations representing $22.4 trillion in assets have adopted TNFD, showing willingness exists when clear frameworks are provided. The challenge isn’t lack of tools—it’s political will to deploy them at scale,” Olsen said.

Public domestic expenditure was the single largest source of funding, reaching USD 190 billion in 2023, as per the report. Spending on biodiversity and landscape protection grew by 11 percent, although support for agriculture, forestry and fisheries declined. Even so, public spending on nature-based solutions remains small compared to the more than USD 2 trillion governments spend each year on environmentally harmful subsidies.

Official Development Finance targeted at nature-based solutions reached USD 6.8 billion in 2023. This represented a 22 percent increase from 2022 and a 55 percent rise compared to 2015. The report describes development finance as a critical enabler for scaling nature-based solutions in developing countries, while warning that geopolitical pressures could constrain future budgets.

Private finance for nature-based solutions reached USD 23.4 billion in 2023. Although small in absolute terms, the report says these flows show positive momentum. Biodiversity offsets channelled more than USD 7 billion, certified commodity supply chains attracted over USD 4 billion, and biodiversity-related bonds and funds mobilized around USD 5 billion. Nature-based carbon markets accounted for about USD 1.3 billion.

“With the right enabling environment, standards and risk-sharing instruments, private capital could scale rapidly and become a game changer in closing the nature-based solutions finance gap,” the report says.

To meet global commitments under the three Rio Conventions on climate change, biodiversity, and land degradation, the report estimates that annual investment in nature-based solutions must rise to USD 571 billion by 2030. This would require a two-and-a-half-fold increase from current levels. The report projects that annual investment needs will reach approximately USD 771 billion by 2050.

The report frames investment in nature-based solutions as a form of essential maintenance for natural infrastructure. It highlights evidence that restoring degraded land can yield returns of between USD 7 and 30 for every dollar invested, if ecosystem services such as water regulation, soil fertility and disaster risk reduction are taken into account.

A review cited in the report found that in 65 percent of disaster risk reduction projects, nature-based solutions were more effective at reducing hazards than traditional engineering approaches. Floodable wetlands and permeable pavements in cities are two examples. They soak up stormwater and take some of the stress off drainage systems.

Despite these benefits, the authors contend that increasing investments in nature won’t suffice unless they eliminate harmful finance. Nature-negative finance, they say, remains the single biggest obstacle to a transition toward nature-positive outcomes.

The report introduces a new analytical framework called the Nature Transition X curve. The framework illustrates the dual challenge facing policymakers and investors. On one side, harmful activities and finance flows must be reduced and phased out. On the other hand, investment in nature-based solutions and other nature-positive activities must be scaled up rapidly.

Olsen said that the X-Curve is a diagnostic tool helping policymakers identify context-specific leverage points, sequence reforms to build political support, and ensure coherence between phasing out harmful finance and scaling up nature-positive alternatives.

“This is not just an environmental agenda but an economic transformation,” the report says. Redirecting harmful subsidies, integrating nature into fiscal frameworks and mobilizing private finance are described as central to building resilient and inclusive economies.

Olsen told IPS news that there is a need for a “Big Nature Turnaround” that repurposes trillions of dollars currently flowing into destructive activities. Key priorities include reforming environmentally harmful subsidies, aligning national budgets with biodiversity and climate targets, and mandating disclosure of nature-related risks and impacts.

More than 730 organizations have now adopted the Taskforce on Nature-related Financial Disclosures framework, representing assets under management worth USD 22.4 trillion. According to the report, this growing awareness of nature-related financial risks is starting to influence corporate and investment decisions, although progress remains uneven.

The report also points to rising legal and regulatory pressures. In some jurisdictions, courts are increasingly questioning whether financial leaders are meeting their fiduciary duties if they ignore environmental risks. At the same time, the authors warn that regulatory rollbacks in other regions could create uncertainty and delay action.

While the scale of the challenge is daunting, the report strikes a cautiously optimistic tone. Better data, a clearer framework, and growing awareness are creating conditions for faster action. The transition to a nature-positive economy, the authors argue, could unlock a trillion-dollar nature transition economy across sectors ranging from food and agriculture to construction, energy and urban infrastructure.

“Turning the wheel towards nature-positive finance is essential,” the report concludes. Without a decisive shift in how money flows through the global economy, the gap between what nature needs and what it receives will continue to widen, with profound consequences for ecosystems, livelihoods and long-term economic stability.

IPS UN Bureau Report

 


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World’s Oceans Hit Record Heat in 2025, at Great Economic and Social Costs

World’s Oceans Hit Record Heat in 2025, at Great Economic and Social Costs

Two fishermen in their boat in Rincao, Cabo Verde. Credit: UN Photo/Mark Garten

By Oritro Karim
UNITED NATIONS, Jan 22 2026 – In 2025, global ocean temperatures rose to some of the highest levels ever recorded, signaling a continued accumulation of heat within the Earth’s climate system and raising deep concern among climate scientists. The economic toll of ocean-related impacts—including collapsing fisheries, widespread coral reef degradation, and mounting damage to coastal infrastructure—is now estimated to be nearly double the global cost of carbon emissions, placing immense strain on economies and endangering millions of lives.

On January 14, the World Meteorological Organization (WMO) confirmed that global temperatures have reached record highs over the past 11 years, with ocean heating continuing at an alarming pace. Despite the cooling influence of La Niña, 2025 became the third hottest year ever recorded. In just the past year, ocean temperatures increased by an estimated ∼23 ± 8 zettajoules—an amount of heat roughly equivalent to 200 times the world’s total electricity generation in 2024.

With an estimated 90 percent of excess heat from global warming absorbed by the world’s oceans, rising ocean temperatures have become one of the clearest indicators of the accelerating climate crisis—carrying profound risks for ecosystems and human life. The ocean is central to global prosperity, supporting livelihoods, market economies, and overall human well-being.

“Global warming is ocean warming,” said John Abraham, a professor of thermal science at the University of St. Thomas. “If you want to know how much the Earth has warmed or how fast we will warm into the future, the answer is in the oceans.”

Zeke Hausfather, a climatologist and research scientist at University of California, Berkeley, described the ocean as the “most reliable thermostat of the planet.”

According to figures from WMO, roughly 33 percent of the Earth’s total ocean area ranked among the top three warmest conditions for ocean ecosystems in history, with roughly 57 percent falling within the top five, such as the tropical and South Atlantic Ocean, Mediterranean Sea, North Indian Ocean, and Southern Oceans.

The primary impact of human-generated carbon dioxide emissions on the ocean is the rapid warming of ocean waters, which significantly reduces the ocean’s capacity to hold oxygen—a critical lifeline for species survival. Rising temperatures also drive ocean acidification—weakening marine organisms, disrupting ecosystems, altering the physiology of numerous species, and triggering mass die-offs.

These effects have catastrophic consequences for biodiversity, fueling widespread coral reef bleaching, the collapse of seagrass beds, and the decline of kelp forests—all of which directly harm the benefits that humans yield from healthy marine environments. Rising ocean temperatures also intensify extreme weather events and accelerate sea-level rise, which in turn increase coastal flooding, erosion, and displacement, placing millions of people, particularly those in low-lying coastal communities, at heightened risk.

While some ocean-based benefits—such as seafood and maritime transport—are reflected in market prices, many others, including coastal protection, recreation, and marine biodiversity, remain overlooked, becoming part of the invisible social “blue cost” of carbon emissions, despite being essential to the deeply interconnected relationship between oceans, people, and economic systems.

“If we don’t put a price tag on the harm that climate change causes to the ocean, it will be invisible to key decision makers,” said environmental economist Bernardo Bastien-Olvera, who led a Scripps Institution of Oceanography study at the University of California San Diego, examining the social cost of carbon emissions and the economic toll of ocean degradation.

“Until now, many of these variables in the ocean haven’t had a market value, so they have been absent from calculations. This study is the first to assign monetary-equivalent values to these overlooked ocean impacts,” added Bastien-Olvera.

According to findings from the Scripps Institution of Oceanography study, accounting for the social impacts of ocean-related carbon emissions nearly doubles the estimated global cost—showing that ocean degradation is a major driver of climate-related economic losses. Researchers found that without ocean impacts included in their model, the average cost per ton of carbon dioxide was roughly USD 51. When accounting for ocean losses, the total costs increased by USD 41.6 per ton, reaching a total of USD 97.2, marking a 91 percent rise.

With the WMO Global Carbon Budget estimating global carbon dioxide emissions at roughly 41.6 billion tons in 2024, this translates to nearly $2 trillion in ocean-related losses in a single year—which is currently absent from standard climate cost assessments. Furthermore, the study found that market damages as a result of ocean degradation account for the largest costs to society and could reach global annual losses of $1.66 trillion in the year 2100.

Furthermore, damages in non-use values—such as recreational benefits provided by ocean ecosystems—now amount to an estimated USD 224 billion annually, while non-market values, including nutritional losses from collapsing fisheries, contribute an additional USD 182 billion in yearly damages. Bastien-Olvera stressed that many of these losses are not traditional market losses but cultural and societal losses, which carry different and often deeper forms of significance for affected communities.

“When an industry emits a ton of carbon dioxide into the atmosphere, as a society we are paying a cost. A company can use this number to inform cost-benefit analysis — what is the damage they will be causing society through increasing their emissions?”, asked Bastien-Olvera.

In response to the rapid warming of the Earth’s oceans, governments, scientific institutions, and international organizations are mobilizing new strategies to reduce carbon emissions and protect marine ecosystems, including expanding green energy infrastructure and advancing large-scale ecosystem restoration efforts.

The United Nations (UN) has renewed pressure on member states to meet their Paris Agreement commitments, while initiatives like the Global Ocean Observing System (GOOS) and the High Seas Treaty work to strengthen ocean monitoring and protect marine biodiversity.

Scientists are also testing emerging methods to counteract climate-driven changes in the ocean. In late 2025, marine scientist Adam Subhas and his team released 16,200 gallons of sodium hydroxide into the ocean in an effort to neutralize rising acidity levels. Though controversial and still in early development, the experiment reflects a growing interest in exploring non-traditional tools that could stabilize marine ecosystems.

“As long as the Earth’s heat continues to increase, ocean heat content will continue to rise and records will continue to fall. The biggest climate uncertainty is what humans decide to do. Together, we can reduce emissions and help safeguard a future climate where humans can thrive,” said Abraham.

IPS UN Bureau Report

 


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Steering Nepal’s Economy Amid Global Challenges

Steering Nepal 's Economy Amid Global Challenges

The country faces a challenging transition, but it can progress if the people work together.

By Krishna Srinivasan and Sarwat Jahan
WASHINGTON DC, Jan 22 2026 – Nepal has a unique opportunity for transformation. The recent youth-led protests underscored aspirations for greater transparency, governance and a more equal distribution of economic opportunities and resources. This yearning resonated in Nepal and beyond.

Now, Nepal must find a balance in setting prudent political, economic and financial policies to steer a difficult transition in an orderly manner. Adding to the complex domestic situation is the lingering uncertainty in the global economy. The transition process in this challenging environment should ensure an inclusive future for Nepal’s people.

Economic challenges

History shows that more equal societies tend to be associated with greater economic stability and more sustained growth. This will be a helpful guiding strategy as Nepal charts its own path to change. Indeed, a solid strategy needs to be founded on two key pillars: economic stability and inclusive growth.

In 2022, stability was among the top priorities when the country’s leaders approached the IMF for support. The collapse of tourism in the wake of the Covid-19 pandemic took a heavy toll on Nepal’s economy, including on its job market.

The IMF’s financing package assisted the authorities’ Covid-19 response in mitigating the pandemic’s impact on economic activity, protecting vulnerable groups and laying the groundwork for sustained growth. The program also supported reforms to foster durable growth and reduce poverty over the medium term, including by implementing cross-cutting institutional reforms to improve governance and reduce corruption vulnerability.

In October, Nepal completed the sixth of seven program reviews, showing tangible improvement in the economy. Indeed, Nepal has been seeing the green shoots of recovery with real GDP growth rising from a mere 2 percent in FY 2023, to 3.7 percent in FY 2024, to an estimated 4.3 percent in FY 2025—more than double the pace in just a few years.

In FY 2026, we still expect the country’s economic recovery to continue, though at a more moderate pace amid a complex domestic environment and global uncertainty.

Nepal has also been very successful in rebuilding policy buffers. Foreign exchange reserves have risen to nearly $20 billion, enough to cover almost a full year of imports. Fiscal discipline has helped stabilise public debt. Inflation remains well below the Nepal Rastra Bank’s target.

This hard-won economic stability should be safeguarded. At the same time, the economy hasn’t fully recovered. Domestic demand remains subdued, investor confidence is waning, and more efforts are needed to protect vulnerable people.

Nepal has achieved significant milestones on structural reforms, in part with support from the IMF capacity development. On the fiscal front, frameworks for increasing government revenue and fiscal transparency have improved with the publication of the domestic revenue mobilization strategy, fiscal risk statement and the tax expenditure report. The National Planning Commission has issued revised guidelines for the National Project Bank, which will strengthen capital project selection and execution.

Likewise, in the financial sector, bank supervision has improved through the Supervisory Information System. The Nepal Rastra Bank has also recently launched a loan portfolio review of 10 large commercial banks, which is expected to provide deep insights into the health of the banking sector.

Measures have been taken to improve governance and transparency, including by improving the anti-money laundering framework, though further efforts are needed to enhance implementation.

As part of the program, four priority nonfinancial public enterprises had their financial statements audited. Work is underway to amend the Nepal Rastra Bank Act to strengthen its autonomy and governance.

Yet, unresolved structural issues and emerging headwinds are testing these gains. Policymakers must ensure that the fruits of macroeconomic stability and growth are broadly shared. Continued reforms will help. In the near term, this implies accelerating budget execution and improving project readiness—particularly in areas such as hydropower and trade-related infrastructure—and reducing logistics frictions, which will crowd-in private investment.

This will also lay the foundation for a more diversified, higher value-added growth model that creates more domestic jobs.

Unlocking private sector growth to deliver more jobs and better livelihoods is critical. This can only be accomplished when the basic building blocks of private enterprise are in place: Strong institutions, free and fair markets and a stable macroeconomic environment.

Over the medium term, strengthening governance and anti-corruption institutions, improving the investment climate, enhancing financial oversight, trade integration and expanding targeted social protection will be key to unlocking inclusive and sustainable growth.

Reason for hope

Let us conclude by expressing our deep sympathy for the profound loss during the recent social unrest. We are deeply saddened by the loss, but also heartened by the resilience of the Nepali people striving for a better future.

While global economic prospects remain dim amid uncertainty, Nepal gives reason for hope—a nation reimagined with greater equality and good governance. The country faces a challenging transition, but it can make the most progress if the people work together. For policymakers, this implies steering the economy on the course of continued reforms that safeguard macroeconomic and financial stability while laying strong foundations for durable and inclusive growth, coupled with good governance.

This is a unique moment in the country’s long history, and a time to set a new standard for the future. The IMF is ready to support Nepal in its journey.

Krishna Srinivasan is the head of the Asia and Pacific Department at the IMF. Sarwat Jahan is the mission chief for Nepal and a deputy division chief in the Asia and Pacific Department.

IPS UN Bureau

 


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Thousands of Kenya’s Smallholder Coffee Farmers Risk Losing EU Market as Deforestation Law Takes Effect

A coffee farmer inspects his integrated farm in Kiambu County, Kenya. Credit: Jackson Okata/IPS

A coffee farmer inspects his integrated farm in Kiambu County, Kenya. Credit: Jackson Okata/IPS

By Jackson Okata
NYERI, Kenya, Jan 21 2026 – For the last twenty years, Sarah Nyaga, a smallholder farmer from Embu County in central Kenya, has farmed coffee. Like most across Kenya, she relies on the export market. A greater percentage of Kenya’s coffee ends up within the European Union market, but a new law threatens to disrupt what has been a source of income for thousands of farmers like Nyaga.

As the European Union Deforestation Regulation (EUDR) takes effect, smallholder coffee farmers in Kenya face an existential threat. EUDR is a new law adopted by the European Union to prevent the import and sale of products linked to deforestation and forest degradation. It targets seven key products, among them cattle, cocoa, coffee, palm oil, soy, timber, and rubber.

And even though smallholders like Nyaga have an extra six months to comply with EUDR, many are not aware of its existence.

Farmers are in rural areas, and many have no access to the internet. They rely on vernacular media houses for information, and many have never heard of EUDR. Government and cooperative society officials who have been tasked with breaking it down have done very little,’’ said Nyaga.

Peter Maina, a farmer in Nyeri county, says, “The EUDR language is too technical for an illiterate farmer to understand.”

“The only people who seem to understand EUDR are Ministry of Agriculture officials in Nairobi. For the ordinary farmer, it is business as usual, and many do not understand the implications of not complying with these regulations,” said Maina.

Tech Challenges

Across Kenya’s coffee-growing zones, farmers, cooperative societies, and coffee exporters fear losing the EU market for failure to comply with the EUDR policy. According to George Watene from the Global Coffee Platform, insufficient access to infrastructure and technical support is a significant barrier to EUDR compliance for many farmers.

“Farmers have limited access to essential information and communication technology (ICT) resources, such as reliable internet and suitable digital tools like smartphones. This undermines the ability to implement traceability systems effectively,” said Watene.

Watene says most coffee farmers are faced with logistical and technical difficulties posed by the requirement for detailed geolocation mapping, particularly polygon mapping.

“This requirement is challenging to meet not only for smallholder farmers but also for cooperatives and estates that may lack the necessary resources and technical capabilities, he said.

Coffee exporters are required to file a due diligence statement declaring that their product is deforestation-free, which means farmers must provide some personal data to help traders complete this statement. Some farmers are worried about the safety of their data.

EUDR requires farmers to provide exact GPS coordinates for their coffee farms. This allows EU regulators to check satellite images and determine whether deforestation or land degradation occurred.

“Sharing data is essential for EUDR compliance and maintaining EU market access, but data must be collected and used responsibly, with safeguards to prevent misuse and protect farmer rights,” Watene said.

Revenue Loss Risk

Bruno Linyuri, Director General of Kenya’s Agriculture and Food Authority, says that so far only 30 percent of the national coffee farms have been geo-mapped in 16 out of the 33 coffee-growing regions of Kenya. This means that only 32,688 Ha out of the 109,384 Ha of coffee plantations have met the EUDR regulations.

Felix Mutwiri, head of Kenya’s coffee Directorate, told IPS that a multi-agency team on compliance had been set up to ensure compliance. He said that Kenya is keen on remaining a leading exporter of coffee to the EU Market.

“The government has already developed a concept for implementing the regulations. To help farmers comply, we have rolled out Geolocation mapping drives and training on EUDR requirements for smallholder farmers,” said Mutwiri.

Smallholder farmers produce approximately 70 percent of Kenya’s coffee. There are an estimated 800,000 small-scale coffee growers and over 2,500 coffee estates operating under some 500 cooperatives.

With an estimated 1.5 million household employees, Kenya’s coffee sector constitutes 30 percent of agricultural labor. The Kenyan coffee market is projected to reach USD 2.4 billion by 2033. Kenya could lose an estimated KES 90 billion (USD 695 m) in export earnings over five years for EUDR non-compliance.

According to Linyuri, the EU buys 60 percent of Kenya’s coffee exports. In 2024, Kenya exported 53,519 tons of coffee with an estimated value of KES 38.4 billion (USD 296.8m). In 2025, the country’s coffee production rose by 13% to 850,000 bags (51,000 tons), with exports increasing by 10% to 840,000 bags (50,400 tons).

Linyuri says the EUDR is not only about coffee and other products, but also about protecting the environment

“We have a problem of people clearing forests to plant coffee and other crops, and this policy will help us address this,’’ said Linyuri.

He added, “If we keep on destroying the environment through deforestation, there will come a time when farmers will have nowhere to farm because our land will be a desert. EUDR is here to help us dignify farming while protecting our environment.”

IPS UN Bureau Report

 


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World Enters ‘Era of Global Water Bankruptcy’

Lead author Prof. Kaveh Madani

 
Flagship report calls for fundamental reset of global water agenda as irreversible damage pushes many basins beyond recovery.

By UN University’s Institute for Water, Environment and Health
UNITED NATIONS, Jan 21 2026 – The world is already in the state of “water bankruptcy”. In many basins and aquifers, long-term overuse and degradation mean that past hydrological and ecological baselines cannot realistically be restored.

While not every basin or country is water-bankrupt, enough critical systems around the world have crossed these thresholds, and are interconnected through trade, migration, climate feedbacks, and geopolitical dependencies, that the global risk landscape is now fundamentally altered.

The familiar language of “water stress” and “water crisis” is no longer adequate. Stress describes high pressure that is still reversible. Crisis describes acute, time-bound shocks. Water bankruptcy must be recognized as a distinct post-crisis state, where accumulated damage and overshoot have undermined the system’s capacity to recover.

A group of women fetching water from a dam in Taha, Northern Region of Ghana. Credit: Evans Ahorsu. Source: UN University’s Institute for Water, Environment and Health

Water bankruptcy management must address insolvency and irreversibility. Unlike financial bankruptcy management, which deals only with insolvency, managing water bankruptcy is concerned with rebalancing demand and supply under conditions where returning to baseline conditions is no longer possible.

Anthropogenic drought is central to the world’s new water reality. Drought and water shortage are increasingly driven by human activities, over-allocation, groundwater depletion, land and soil degradation, deforestation, pollution, and climate change, rather than natural variability alone. Water bankruptcy is the outcome of long-term anthropogenic drought, not just bad luck with hydrological anomalies.

Water bankruptcy is about both quantity and quality. Declining stocks, polluted rivers, and degrading aquifers, and salinized soils mean that the truly usable fraction of available water is shrinking, even where total volumes may appear stable.

Managing water bankruptcy requires a shift from crisis management to bankruptcy management. The priority is no longer to “get back to normal”, but to prevent further irreversible damage, rebalance rights and claims within degraded carrying capacities, transform water-intensive sectors and development models, and support just transitions for those most affected.

Governance institutions must protect both water and its underlying natural capital. The existing institutions focus on protecting water as a good or service disregarding the natural capital that makes water available in the first place. Efforts to protect a product are ineffective when the processes that produce it are disrupted.

Recognizing water bankruptcy calls for developing legal and governance institutions that can effectively protect not only water but also the hydrological cycle and natural capital that make its production possible.

Water bankruptcy is a justice and security issue. The costs of overshoot and irreversibility fall disproportionately on smallholder farmers, rural and Indigenous communities, informal urban residents, women, youth, and downstream users, while benefits have often accrued to more powerful actors. How societies manage water bankruptcy will shape social cohesion, political stability, and peace.

Water bankruptcy management combines mitigation with adaptation. While water crisis management paradigms seek to return the system to normal conditions through mitigation efforts only, water bankruptcy management focuses on restoring what is possible and preventing further damages through mitigation combined with adaptation to new normals and constraints.

Water can serve as a bridge in a fragmented world. Water can align national priorities with international priorities and improve cooperation between and within nations. Roughly 70% of global freshwater withdrawals are used for agriculture, much of it by farmers in the Global South. Elevating water in global policy debates can help rebuild trust between South and North but also within nations, between rural and urban, left and right constituencies.

Water must be recognized as an upstream sector. Most national and international policy agendas treat water as a downstream impact sector where investments are focused on mitigating the imposed problems and externalities. The world must recognize water as an upstream opportunity sector where investments have long-term benefits for peace, stability, security, equity, economy, health, and the environment.

Water is an effective medium to fulfill the global environmental agenda. Investments in addressing water bankruptcy deliver major co-benefits for the global efforts to address its environmental problems while addressing the national security concerns of the UN member states.

Elevating water in the global policy agenda can renew international cooperation, increase the efficiency of environmental investments, and reaccelerate the halted progress of the three Rio Conventions to address climate change, biodiversity loss, and desertification.

A new global water agenda is urgently needed. Existing agendas and conventional water policies, focused mainly on WASH, incremental efficiency gains and generic IWRM guidelines, are not sufficient for the world’s current water reality. A fresh water agenda must be developed that takes Global Water Bankruptcy as a starting point and uses the 2026 and 2028 UN Water Conferences, the conclusion of the Water Action Decade in 2028, and the 2030 SDG 6 timeline as milestones for resetting how the world understands and governs water.

Global Water Bankruptcy: Living Beyond Our Hydrological Means in the Post-Crisis Era | UN University Institute for Water, Environment and Health (UNU-INWEH) (20 January) (press release)

Support Paper
Madani K. (2026) Water Bankruptcy: The Formal Definition, Water Resources Management, 40 (78) doi: 10.1007/s11269-025-04484-0)

IPS UN Bureau

 


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Global Survey Finds Citizens back a World Parliament as Trust in International System Erodes

A global survey across 101 countries finds global majority support for a citizen-elected world parliament to handle global issues, reflecting widespread concern over an outdated and undemocratic international order. Credit: Democracy Without Borders

By Democracy Without Borders
BERLIN, Germany, Jan 20 2026 – As democracy faces pressure around the world and confidence in international law drops, a new global survey reveals that citizens in a vast majority of countries support the idea of creating a citizen-elected world parliament to deal with global issues.

The survey, commissioned by Democracy Without Borders and conducted across 101 countries representing 90% of the world’s population, finds that 40% of respondents support the proposal, while only 27% are opposed. It is the largest poll ever carried out thus far on this subject.

Support is strongest in countries of the Global South, especially Sub-Saharan Africa, and among groups often underrepresented in national political systems—young people, ethnic minorities, and those with lower income or education levels. In 85 out of 101 countries surveyed, more respondents support the idea than oppose it.

“The message is clear: people around the world are ready to expand democratic representation to the global scale,” said Andreas Bummel, Executive Director of Democracy Without Borders. “This survey shows there is a growing global constituency that wants a voice in decisions affecting humanity as a whole,” he added.

The findings come at a time when the international system is under increasing strain from climate change, war, geopolitical conflicts, authoritarian resurgence, and stalled global cooperation. The results suggest that many citizens—especially in less powerful countries—see a world parliament as a pathway to fairer and more effective global governance.

In countries with limited political freedoms, support for a world parliament is particularly high. According to Democracy Without Borders, this points to a public perception that global democratic institutions could help advance democracy at home as well.

A notable 33% of respondents globally selected a neutral stance, suggesting unfamiliarity with the concept. An analysis of the survey results argues that this indicates a wide-open space for public engagement. If the idea gains visibility, support could grow substantially, it says.

“The international system created in the last century to prevent war and mass violence is built on the United Nations. But many UN member states do not represent their people. They represent oppressive authoritarian elites who have seized power.

The proposed vision of a citizen-elected world parliament could be a vital step in the discussion about building a more democratic global order,” said Oleksandra Matviichuk, head of the Centre for Civil Liberties in Ukraine awarded with the Nobel Peace Prize.

According to the survey, net opposition found in individual countries is most concentrated in high-income democracies. “This is not a rejection of democracy. It is a reminder that privilege may breed complacency, and that those who benefit from existing arrangements may underestimate how urgently they need renewal,” commented George Papandreou, Greek Member of Parliament and former Prime Minister.

Democracy Without Borders, an international civil society organization, advocates for the establishment of a United Nations Parliamentary Assembly as a step toward a democratic world parliament. The organization says the survey results reinforce the urgency for democratic governments to consider this long-standing proposal.

IPS UN Bureau

 


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Guinea’s Path to Electoral Autocracy

Credit: Luc Gnago/Reuters via Gallo Images

By Inés M. Pousadela
MONTEVIDEO, Uruguay, Jan 20 2026 – In December, the dust settled on Guinea’s first presidential election since the military took control in a 2021 coup. General Mamady Doumbouya stayed in power after receiving 87 per cent of the vote. But the outcome was never in doubt: this was no a democratic milestone; it was the culmination of Guinea’s denied transition to civilian rule.

Doumbouya has successfully performed an act of political alchemy, turning a military autocracy into an electoral one. By systematically dismantling the opposition, silencing the press and rewriting laws to suit his ambitions, he has made sure to shield his grip on power with a thin veil of electoral legitimacy.

The architecture of autocracy

The path to this moment was paved with precision. In April 2025, Doumbouya announced a constitutional referendum, a move that may have looked like it would herald the beginning of the end of military rule. But it was something else entirely. By June, Doumbouya had further centralised control by creating a new General Directorate of Elections. This body, placed firmly under the thumb of the Ministry of Territorial Administration, reversed previous efforts to establish an independent electoral institution.

The constitution was drafted in the shadows by the National Council of the Transition, the junta-appointed legislative body. While early drafts reportedly contained safeguards against lifetime presidencies, these were stripped away before the final text reached the public. The result was a document that removed a ban on junta members running for office, extended presidential terms from five to seven years and granted the president the power to appoint a third of the newly created Senate.

When the referendum was held on 21 September, it rubber-stamped de facto rule. Official figures claimed 89 per cent support with an 86 per cent turnout, numbers that defied the reality of a widespread opposition boycott and a palpable lack of public enthusiasm.

A climate of fear

With a blanket ban on protests in effect since May 2022, those who’ve dared challenge the junta’s controlled transition have been met with security force violence. On 6 January 2025, security forces killed at least three people, including two children, during demonstrations called by the opposition coalition Forces Vives de Guinée.

The political landscape was further cleared through administrative and judicial means. In October 2024, the government dissolved over 50 political parties. By August 2025, major opposition groups such as the Rally of the People of Guinea had been suspended. Key challengers, including former Prime Minister Cellou Dalein Diallo, remain in exile, while others, among them Aliou Bah, have been sentenced to prison – in Bah’s case, for allegedly insulting Doumbouya.

The atmosphere of fear has been reinforced by a brutal crackdown on the media. Guinea plummeted 25 places in the 2025 World Press Freedom Index, the year’s largest fall. Independent outlets have had their licences revoked and journalists have been detained. Those still working have learned to practise strict self-censorship to avoid becoming the next target. This meant that as voters went to the polls, there was nobody to provide diverse perspectives, scrutinise the process, investigate irregularities or hold authorities accountable.

Coup contagion

Guinea is no outlier. Since 2020, a coup contagion has swept through Africa, with military takeovers in Burkina Faso, Chad, Gabon, Guinea-Bissau, Madagascar, Mali, Niger and Sudan. In each instance, the script has been similar: military leaders seize power promising to ‘correct’ the failures of the previous regime, only to break their promises of a return to civilian rule.

Guinea is now the third country among this recent wave to move from a military dictatorship to an electoral autocracy. It follows in the footsteps of Chad, where Mahamat Idriss Déby secured victory in May 2024 after the suspicious killing of his main opponent, and Gabon, where General Brice Oligui Nguema won a 2025 election with a reported 90 per cent of the vote.

The international community does little. Doumbouya routinely ignored deadlines and sanctions from the Economic Community of West African States, which once prided itself on a ‘zero-tolerance’ policy for coups, and no consequences ensued. The African Union and the United Nations offered rhetorical concern, but their warnings were not accompanied by tangible diplomatic or economic repercussions.

The world’s willingness to maintain business as usual while Doumbouya steered through a fake transition sends a dangerous message to other aspiring autocrats, in the region and beyond.

Democracy denied

When Doumbouya seized power in 2021, he was greeted with a degree of cautious optimism. His predecessor, Alpha Condé, had controversially amended the constitution to secure a third term amid violent protests and corruption and fraud allegations. Doumbouya promised to fix things, but instead became a mirror image of the man he ousted, using the same tactics of constitutional revision and repression to secure his power.

The statistics of the December election – an 87 per cent victory on a claimed 80 per cent turnout – do not reflect a genuine mandate but rather a vacuum: with no independent media to scrutinise the process and no viable opposition allowed to run, the election was a technicality.

The prospects for real democracy in Guinea appear remote. Doumbouya has secured a seven-year mandate through an election that eliminated the essential infrastructure needed for democracy. In the absence of stronger international pressure and tangible support for Guinean civil society, Guinea faces prolonged authoritarian rule behind a democratic facade, with dismal human rights prospects.

Inés M. Pousadela is CIVICUS Head of Research and Analysis, co-director and writer for CIVICUS Lens and co-author of the State of Civil Society Report. She is also a Professor of Comparative Politics at Universidad ORT Uruguay.

For interviews or more information, please contact [email protected]

 


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World Living Beyond Its Means: Warns UN’s Global Water Bankruptcy Report

Collecting water in Ethiopia. A new report, ‘Global Water Bankruptcy: Living Beyond Our Hydrological Means in the Post Crisis Era’ warns that many of the earth’s water resources have been pushed to a point of permanent failure. Credit: EU/ECHO/Anouk Delafortrie/IPS

Collecting water in Ethiopia. A new report, ‘Global Water Bankruptcy: Living Beyond Our Hydrological Means in the Post Crisis Era’ warns that many of the earth’s water resources have been pushed to a point of permanent failure. Credit: EU/ECHO/Anouk Delafortrie/IPS

By Umar Manzoor Shah
UNITED NATIONS & SRINAGAR, India, Jan 20 2026 – The world has entered what United Nations researchers now describe as an era of Global Water Bankruptcy, a condition where humanity has irreversibly overspent the planet’s water resources, leaving ecosystems, economies, and communities unable to recover to previous levels.

The new report, released by the United Nations University Institute for Water, Environment and Health, titled Global Water Bankruptcy: Living Beyond Our Hydrological Means in the Post-Crisis Era. The report argues that decades of overextraction, pollution, land degradation, and climate stress have pushed large parts of the global water system into a permanent state of failure.

“The world has entered the era of Global Water Bankruptcy,” the report reads, adding that “in many regions, human water systems are already in a post-crisis state of failure.”

According to the report, the language of “water crisis” is no longer sufficient to explain what is happening. A crisis implies a shock followed by recovery. Water bankruptcy, by contrast, describes a condition where recovery is no longer realistically possible because natural water capital has been permanently damaged.

In an exclusive interview with Inter Press Service, former Deputy Head of Iran’s Department of Environment  Prof. Kaveh Madani, who currently is the Director at United Nations University, Institute for Water, Environment and Health, said that declaring that the planet has entered the era of water bankruptcy must not be interpreted as universal water bankruptcy, as not all basins, aquifers, and systems are water bankrupt.

 Prof. Kaveh Madani, Director at the United Nations University, Institute for Water, Environment and Health, addresses the UN midday press briefing. Credit: IPS

Prof. Kaveh Madani, Director at the United Nations University, Institute for Water, Environment and Health, addresses the UN midday press briefing. Credit: IPS

“But we now have enough critical basins and aquifers in chronic decline and showing clear signs of irreversibility that the global risk landscape is already being reshaped. Scientifically, we know recovery is no longer realistic in many systems when we see persistent overshoot (using more than renewable supply) combined with clear markers of irreversibility—for example aquifer compaction and land subsidence that permanently reduce storage, wetland and lake loss, salinization and pollution that shrink usable water, and glacier retreat that removes a long-term seasonal buffer. When these signals persist over time, the old “bounce back” assumption stops being credible,” Madani said.

According to the report, over decades, societies have drawn down the renewable flow of rivers and rainfall besides long-term reserves stored in aquifers, glaciers, wetlands, and soils. At the same time, pollution and salinization have reduced the share of water that is safe or economically usable.

“Over decades, societies have withdrawn more water than climate and hydrology can reliably provide, drawing down not only the annual income of renewable flows but also the savings stored in aquifers, glaciers, soils, wetlands, and river ecosystems,” the report says.

The scale of the problem, as per the report, is global. Nearly three-quarters of the world’s population now lives in countries classified as water insecure or critically water insecure.

Around 2.2 billion people still lack safely managed drinking water, while 3.5 billion lack safely managed sanitation. About 4 billion people, as per the report findings, experience severe water scarcity for at least one month every year.

Madani said, adding that water bankruptcy is best assessed basin by basin and aquifer by aquifer, not by country.

“Please note that, based on the water security definition used by the UN system, water insecurity and water bankruptcy are not equivalent. Water bankruptcy can drive water insecurity, but water insecurity can also stem from limited financial and institutional capacity to build and operate infrastructure for safe water supply and sanitation, even where physical water is available,” he explained.

Madani added that the regions most consistently closest to irreversible decline cluster in the Middle East and North Africa, Central and South Asia, parts of northern China, the Mediterranean and southern Europe, the southwestern United States and northern Mexico (including the Colorado River system), parts of southern Africa, and parts of Australia.

The Aral Sea, which lies between Kazakhstan and Uzbekistan shows dramatic water loss between 1989 and 2025. Credit: UNU-INWEH

The Aral Sea, which lies between Kazakhstan and Uzbekistan, shows dramatic water loss between 1989 and 2025. Credit: UNU-INWEH

Surface Water Systems Are Shrinking Rapidly

The report shows how more than half of the world’s large lakes have lost water since the early 1990s, affecting nearly one quarter of the global population that depends directly on them. Many major rivers now fail to reach the sea for parts of the year or fall below environmental flow needs.

Massive losses have occurred in wetlands, which serve as natural buffers against floods and droughts. Over the past five decades, the report claims that the world has lost roughly 410 million hectares of natural wetlands, almost the size of the European Union. The economic value of lost ecosystem services from these wetlands exceeds 5.1 trillion US dollars.

Groundwater depletion is one of the clearest signs of water bankruptcy. Groundwater, says the report, now supplies about 50 percent of global domestic water use and over 40 percent of irrigation water. Yet around 70 percent of the world’s major aquifers show long-term declining trends.

“Excessive groundwater extraction has already contributed to significant land subsidence over more than 6 million square kilometers,” the report says, warning that in some locations land is sinking by up to 25 centimeters per year, permanently reducing storage capacity and increasing flood risk.

In coastal areas, overpumping has allowed seawater to intrude into aquifers, rendering groundwater unusable for generations. In inland agricultural regions, falling water tables have triggered sinkholes, soil collapse, and the loss of fertile land.

These satellite images show a dramatic impact of the Aru glacier collapses in western Tibet. First image was taken in 2017 and the second in 2025. Credit: UNU-INWEH

These satellite images show a dramatic impact of the Aru glacier collapses in western Tibet. First image was taken in 2017 and the second in 2025. Credit: UNU-INWEH

The cryosphere, glaciers and snowpacks that act as natural water storage systems are also being rapidly liquidated. The world has already lost more than 30 percent of its glacier mass since 1970. Several low- and mid-latitude mountain ranges could lose functional glaciers within decades.

“The liquidation of this frozen savings account interacts with groundwater depletion and surface water over-allocation to lock many basins into a permanent worsening water deficit state,” says the report.

This loss, as per the report, threatens the long-term water security of hundreds of millions of people who depend on glacier- and snowmelt-fed rivers for drinking water, irrigation, and hydropower, particularly in Asia and the Andes.

Madani said the biggest failure was treating groundwater as an unlimited safety net instead of a strategic reserve.

He says that when surface water tightened, many systems defaulted to “drill deeper” without enforceable caps.

“Authorities often recognize the consequences when it is already late, and meaningful action then faces major political barriers. For example, reducing groundwater use in farming can trigger unemployment, food insecurity, and even instability unless farmers are supported through short-term compensation and a longer-term transition to alternative livelihoods,” he added.

According to Madani, that kind of transition cannot be implemented overnight.

“So, business as usual continues. The result is predictable: groundwater gets “liquidated” to postpone hard choices, and by the time the damage is obvious, recovery is no longer realistic,” he told IPS news.

Agriculture Lies at the Heart of the Crisis

According to the report, farming accounts for approximately 70 percent of global freshwater withdrawals. About 3 billion people and more than half of the world’s food production are located in regions where total water storage is already declining or unstable.

The report states that more than 170 million hectares of irrigated cropland are under high or very high water stress. Land and soil degradation are making matters worse by reducing the ability of soils to retain moisture. The degradation of more than half of the global agricultural land is now moderate or severe.

Drought, once considered a natural hazard, is increasingly driven by human activity. Overallocation, groundwater depletion, deforestation, land degradation, and climate change have turned drought into a chronic condition in many regions.

“Drought-related damages, intensified by land degradation, groundwater depletion and climate change rather than rainfall deficits alone, already amount to about 307 billion US dollars per year worldwide,” the report states.

Water quality degradation further shrinks the usable resource base. Pollution from untreated wastewater, agricultural runoff, industrial effluents, and salinization means that even where water volumes appear stable, much of that water is unsafe or too costly to treat.

The report adds that the planetary freshwater boundary has already been crossed. Both blue water, surface and groundwater, and green water, soil moisture, have been pushed beyond a safe operating space.

Current governance systems, the authors argue, are not fit for this reality. Many legal water rights and development promises far exceed degraded hydrological capacity. Existing global agendas, focused largely on drinking water access, sanitation, and incremental efficiency gains, are inadequate for managing irreversible loss.

“Water bankruptcy must be recognized as a distinct post-crisis state, where accumulated damage and overshoot have undermined the system’s capacity to recover,” the report says.

Water bankruptcy could result in an increase in conflicts. Credit: UNU-INWEH

Water bankruptcy could result in a further increase in conflicts. Credit: UNU-INWEH

It warns that the implications of water bankruptcy are dire.

UN Under-Secretary-General Tshilidzi Marwala, Rector of UNU explains,  “Water bankruptcy is becoming a driver of fragility, displacement, and conflict. Managing it fairly—ensuring that vulnerable communities are protected and that unavoidable losses are shared equitably—is now central to maintaining peace, stability, and social cohesion.”

Policy Implications

Instead of crisis management aimed at restoring the past, the report actually pitches for bankruptcy management. That means acknowledging insolvency, accepting irreversibility, and restructuring water use, rights, and institutions to prevent further damage.

The authors lay stress on the fact that water bankruptcy is also a justice and security issue. The costs of overshoot fall disproportionately on small farmers, rural communities, women, Indigenous peoples, and downstream users, while benefits have often accrued to more powerful actors.

“How societies manage water bankruptcy will shape social cohesion, political stability, and peace,” the report warns.

Furthermore, it urges governments and international institutions to use upcoming UN Water Conferences in 2026 and 2028 as milestones to reset the global water agenda, calling for water to be treated as an upstream sector central to climate action, biodiversity protection, food security, and peace.

“This is about a crisis that might arrive in the future. The world is already living beyond its hydrological means,” reads the report.

When asked why the report frames water bankruptcy as a justice and security issue and how governments can implement painful demand reductions without triggering social unrest or conflict, Madani said the demand reduction becomes dangerous when it is treated as a technical exercise instead of a political economy reform. In many water-bankrupt regions, according to him, water is effectively a jobs policy: it keeps low-productivity farming and local economies afloat.

“If you cut water without an economic transition, you create unemployment, food insecurity, and unrest. So the practical pathway is to decouple livelihoods and growth from water consumption. In many economies, water and other natural resources are used to keep low-efficiency systems alive. In most places, it is possible to produce more strategic food with less water and less land, and with fewer farmers—provided that farmers are supported through a transition and offered alternative livelihoods.”

According to Madani, governments should protect basic needs but target the big reductions where most water is used, especially agriculture and besides that, pair caps with a just transition package for farmers—compensation, insurance, buy-down or retirement of water entitlements where relevant, and real income alternatives.

He further suggests that the governments should invest in diversification, including services, industry, value-added agri-processing, and urban jobs, so communities can earn a living without expanding water withdrawals.

“In short, you avoid conflict by making demand reduction part of a broader economic transition, not a standalone water policy.”

IPS UN Bureau Report

 


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One Carries a Broom, the Other a Schoolbag

Without a classroom or facilities, our community teachers provide lessons to children engaged in domestic labour. Credit: UKBET

By Mohammed A. Sayem
SYLHET, Bangladesh, Jan 19 2026 – While other children her age prepared for school, eight-year-old Tania once began her workday. Each morning, she picked up a jharu—the household broom—and cleaned floors inside a private home. At the same time, another child of her age in that household lifted a schoolbag and left for class. One carried a broom. The other carried books.

For years, this was Tania’s daily reality. And for thousands of children across Bangladesh, it still is.

Tania A, who has transitioned from child labour to mainstream school. Credit: UKBET

Domestic child labour remains one of the most hidden and least acknowledged forms of child exploitation. Driven by extreme poverty, children are sent to work inside private homes where their labour is largely invisible. They clean, cook, wash clothes, and care for younger children, often working long hours without rest, education, or protection. Deprived of school and play, they lose both childhood and future opportunities.

Child rights organisations note that many domestic child workers face neglect, mistreatment, and abuse. Most cases go unreported because the work happens behind closed doors, beyond public scrutiny and accountability.

Despite clear legal safeguards, child labour persists. Bangladeshi law prohibits the employment of children under the age of 14 and limits work for those aged 15–17 to non-hazardous conditions. Yet an estimated 3.4 million children are engaged in illegal labour, and thousands of them work as domestic workers. Exact figures remain uncertain, as domestic labour is informal, unregulated, and largely hidden.

In the north-eastern city of Sylhet, UK Bangladesh Education Trust (UKBET), a UK-based international NGO, has developed a community-based intervention aimed at reaching these children. Through its Doorstep Learning Programme, UKBET trains and deploys community teachers to identify children involved in domestic labour and provide education at their places of work, with the consent of employers. Learning sessions may take place in a kitchen corner or shared courtyard—wherever space is available and permitted.

Alongside education, the programme addresses the economic drivers of child labour. Parents receive small livelihood grants to start or expand family businesses, reducing dependence on a child’s earnings. As household income stabilises, children are supported to transition into formal schooling or vocational training. Awareness sessions further promote child rights and discourage the recruitment of child domestic workers.

Today, UKBET operates in 21 of the 42 wards of Sylhet City. Even within this limited coverage, the need is substantial, with thousands of domestic child workers still waiting for attention and support.

Early evidence suggests the model works. An independent evaluation supported by Shahjalal University of Science and Technology found that 80% of enrolled children between programme inception and 2024 are continuing in school, 74% of family support businesses remain active, and no supported families have sent children back to work. Among girls receiving vocational training, nearly 69% are earning in safer employment. Interviews with employers also indicated they did not hire replacement child workers after children were withdrawn from domestic labour.

For Tania, the shift has been transformative. In January 2026, she enrolled in school. She no longer starts her day with a jharu in her hand. She now carries her own schoolbag. Her family has secured a stable source of income and no longer depends on the money she once earned.

Tania’s story illustrates what targeted, community-based interventions can achieve. But her experience is still not typical. Thousands of domestic child workers remain hidden inside private homes, excluded from education, and denied their rights.

Children like Tania do not need sympathy alone. They need visibility, opportunity, and sustained action. Their lives may be hidden—yet they must not remain invisible.

For further information about UKBET’s work with children engaged in domestic labour:
Mohammed A. Sayem
Director, UKBET – Education for Change
Email: [email protected], Web: www.ukbet-bd.org

IPS UN Bureau

 


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