In January 2026, the United Nations University Institute for Water, Environment and Health (UNU‑INWEH) declared that many regions have moved beyond temporary water “crises” into a state of water bankruptcy—where water use consistently exceeds nature’s capacity to recover, and damage to water‑related ecosystems has become difficult or impossible to reverse.

While the term “water bankruptcy” was formally advanced by UN scientists, the World Bank’s flagship water monitoring reports reinforce the same conclusion—freshwater losses are accelerating due to climate change, deforestation, wetland degradation, and unsustainable water use, even in countries long considered water‑abundant.

For the Philippines—an archipelago shaped by rivers, wetlands, lakes, deltas, and coasts—this warning should ring alarm bells. Water bankruptcy is not a distant, abstract risk. It is already unfolding across our landscapes, livelihoods, and ecosystems.

The Philippine Paradox: Water-Rich, Yet Water-Stressed

On paper, the Philippines appears flush with water. With more than 400 rivers, over 200 lakes, abundant groundwater, and high annual rainfall, the country should be water-secure. Yet since 2017, the Philippines has been officially classified as water-stressed, with per capita water availability falling below the 1,700 m³ threshold due to population growth, uneven distribution, pollution, climate variability, and governance gaps.

Droughts linked to El Niño, floods intensified by extreme rainfall, declining water quality, and over-extraction of groundwater increasingly affect households, farmers, and fishers alike. The World Bank warns that such patterns are not temporary “crises” but symptoms of deeper structural imbalance in how water and land are managed.

Wetlands: Nature’s Defense Against Water Bankruptcy

Wetlands—marshes, mangroves, peatlands, floodplains, seagrass beds, and lakes—are among the most effective natural buffers against water-related risks. By storing, filtering, and slowly releasing water, wetlands help reduce flooding during heavy rains and sustain flows during dry periods. They also recharge aquifers, improve water quality, support fisheries, and protect coastlines from storm surges and erosion.

In the Philippines, deltas, mangroves, and inland wetlands underpin food security, disaster risk reduction, and climate resilience—particularly for rural and coastal communities. Investing in wetland protection is therefore not just an environmental concern; it is a strategic response to the growing threat of water scarcity and instability.

Global evidence increasingly recognizes wetlands as critical water infrastructure, often more cost-effective and resilient than purely engineered solutions.

When Wetlands Themselves Go Bankrupt

Yet wetlands are not immune to water bankruptcy—they are often its first casualties. Globally, around 35% of natural wetlands have been lost since 1970, largely due to land conversion, drainage, pollution, and altered water flows. The World Bank identifies wetland degradation as both a cause and consequence of accelerating freshwater loss.

In the Philippines, wetlands face mounting pressures:

• Conversion for urban development and agriculture
• Reduced freshwater inflows from damming and river modification
• Pollution from untreated wastewater and runoff
• Rising sea levels and saltwater intrusion affecting coastal wetlands

As wetlands shrink or degrade, their capacity to regulate water collapses—pushing surrounding communities closer to water insecurity and amplifying flood and drought risks. This feedback loop is a hallmark of water bankruptcy: once natural water “savings accounts” like wetlands are depleted, recovery becomes slower, costlier, or even impossible.

A Call to Act Before the Deficit Deepens

The World Bank emphasizes that water loss is not inevitable. Policy choices, land-use decisions, and investments can still reverse or slow the trend—especially when nature-based solutions are prioritized. Protecting and restoring wetlands must therefore sit at the heart of Philippine water and climate strategies.

For Wetlands International Philippines, the message is clear:
Safeguarding wetlands is safeguarding our water future. Preventing water bankruptcy requires recognizing wetlands not as expendable land, but as vital assets that sustain water security, resilience, and livelihoods—today and for generations to come.

Wetlands are not just victims of water bankruptcy. They are among our strongest defenses against it—if we choose to protect them while we still can.

Works Cited:

• United Nations. “World Enters Era of ‘Global Water Bankruptcy.’” UN News, 20 Jan. 2026, https://news.un.org/en/story/2026/01/1166800.
• United Nations University Institute for Water, Environment and Health. The World Is in Water Bankruptcy, UN Scientists Report – Here’s What That Means. United Nations University, 22 Jan. 2026, https://unu.edu/inweh/article/world-water-bankruptcy-un-scientists-report-heres-what-means.
• World Bank. Continental Drying: A Threat to Our Common Future. Global Water Monitoring Report, World Bank Group, Nov. 2025, https://www.worldbank.org/en/news/press-release/2025/11/04/world-annual-fresh-water-losses-could-supply-280-million-people.
• Senate Economic Planning Office. The State of Water at a Glance. Philippine Senate, Aug. 2023, https://legacy.senate.gov.ph/publications/SEPO/State%20of%20Water%20AAG_August%202023.pdf.
• Ramsar Convention on Wetlands. Global Wetland Outlook 2025: Valuing, Conserving, Restoring and Financing Wetlands. UN‑Water, 28 July 2025, https://www.unwater.org/news/global-wetland-outlook-2025-vanishing-wetlands-put-39-trillion-global-benefits-line.