How to future-proof water systems in an era of extreme weather

From my home in Los Angeles, I witnessed the devastation of wildfires earlier this year and how they underscored the rising urgency to modernize water infrastructure. A slew of dangerous chemicals were released into Los Angeles’ drinking water and stormwater systems during the wildfires, leaving many communities concerned about whether their water was safe to drink. 

These wildfires shone a light on whether our water systems are equipped to handle disasters. As wildfires grow more frequent and intense, it becomes even more urgent to adapt our water infrastructure to meet this new reality. Much of the nation’s water infrastructure is nearing the end of its lifespan. And yet, modernizing drinking and wastewater systems could exceed $744 billion in costs over the next 20 years.  

Between the urgent need to upgrade decades-old systems and the rising impacts of climate-driven weather extremes, the vast networks of pipes, treatment plants, and drainage systems across the U.S. are under immense strain. 

Uncertainty around legislation and funding

Federal and state legislation and funding could put a significant dent in addressing critical water infrastructure needed to support economic growth and communities. The Bipartisan Infrastructure Law, for example, earmarks $50 billion for water, wastewater, and stormwater infrastructure upgrades. As of November, about $41 billion had been awarded for the measure, which garnered broad business support. 

States, meanwhile, also have pushed for water infrastructure improvements. Last year, California voters authorized $10 billion in spending on environmental projects, with nearly $4 billion for projects dedicated to improving water quality and protecting the state from floods and droughts and restoring rivers and lakes.  

But there is rising uncertainty surrounding such funding due to the dynamic situation in Washington. As this plays out, it’s crucial for companies and investors to take advantage of private sector opportunities to drive innovation, partnerships and investments in climate-resilient water infrastructure. 

This work strengthens water supplies for businesses and fuels economic activity: investments in new and improved water systems could annually contribute more than $220 billion to the U.S. economy and create about 1.3 million new jobs.

Private sector opportunities

For many decades, municipal bonds have been a critical tool for shoring up water infrastructure. Today, green bonds can offer investors a powerful opportunity to finance water and wastewater management projects that promote climate adaptation and resiliency. Certification frameworks such as the Climate Bonds Initiative provide criteria ensuring these investments go toward water infrastructure projects aligned with environmental goals. 

Companies — from data centers to agriculture — that need clean water to operate also have a role to play in ensuring the water systems they depend on are reliable and built to endure weather extremes. This shared interest in resilient water infrastructure presents an opportunity for businesses to work with peers, governments and other stakeholders on projects that prevent water service disruptions and higher costs to businesses and communities. 

Moving past traditional approaches

As we work to strengthen our water infrastructure system to meet a new climate reality, we must also think beyond traditional approaches. Nature-based water systems and solutions can play a critical role in managing water and restoring and protecting ecosystems within watersheds that help filter and transport clean water. Holistic approaches such as wetland protection and restoration help strengthen water systems against the growing pressures of extreme weather.

Some companies are leveraging partnerships to accelerate and broaden the impact of these solutions. Olam, a food ingredients and agri-business company, has partnered with the USDA Forest Service, National Forest Foundation, and Knorr (a Unilever Brand) on restoration projects to improve resilience, including potential impacts of severe wildfire, in California’s Pine Flats watershed.

Through the California Water Resilience Initiative, companies such as Ecolab and General Mills are working with the Pacific Institute to build corporate support for projects and policies addressing strained water resources in the state, including efforts to restore ecosystems. 

Companies can also support federal policies that help modernize water infrastructure. Global water technology company Xylem, for example, lobbied for the 2016 passage and implementation of the Water Infrastructure Improvements for the Nation Act (WIIN Act), which provides grants to improve infrastructure resiliency in disadvantaged communities. 

The Los Angeles fires are just the latest example of how climate disasters are pushing America’s aging water systems to the brink. We need an all hands-on deck approach, with innovative solutions and funding, to upgrade and replace the nation’s network of water infrastructure at the pace and scale that ensures the long-term health and safety of communities and the economy.

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