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Socio-economic choices required for future-proof water management

Technological solutions regarding water management, in which the Dutch excel, remain necessary but are not sufficient. A broader and coherent perspective is needed, from which choices can be made that contribute to a fundamental shift in water management in the Netherlands. In its report (in Dutch), the SER focuses on five socio-economic issues: systematic drought management, cost distribution, water valuation, the steering role of water and soil, and risk bearing.

‘Our country sometimes has to deal with too much water and other times with too little water, and water quality is often poor. This situation is not sustainable in the long term,’ says Steven van Eijck, Crown-appointed member of the SER and chair of the committee that drafted the report. ‘We’re facing fundamental choices, where the interrelationships between various societal challenges are crucial. This means not only responsible use of energy and raw materials, but also responsible use of water. How will we distribute the water? Who pays for what and when? These are urgent questions we need to discuss together.’

Issues

The report addresses five socio-economic issues related to water: systematic drought management, financing principles, water valuation, consideration of water and soil, and the costs of damage and risks.

Systematic drought management

The risk of freshwater shortages is increasing due to global warming and rising sea levels. The Netherlands has established a system of allocations for water to various users in the event of severe drought, both short-term and in emergencies. However, this system does not offer a solution for longer periods of drought. Therefore, the challenge lies in finding an approach that offers systematic, equitable prioritisation of water use, in addition to innovative technological measures.

Financing principles

Dutch water management has a robust financing system. However, the underlying principles, such as solidarity, the polluter pays principle, and the principle that those who cause costs should bear them, are increasingly being questioned. Further exploration is needed to determine how these principles can encourage desirable behaviour and ensure that cost sharing is considered more equitable.

Water valuation

Water is invaluable to society, but assigning the right value is not easy. The value should reflect both water shortages and flooding, as well as the various benefits. Appropriately valuing water (while considering the costs) also offers opportunities for sustainable growth and innovation by businesses. The question is how more value can be assigned to water in a way that ensures better (and affordable) water management.

Considering water and soil

More physical space is needed to deal with water issues (e.g. nature-friendly banks, dikes). This also applies to other societal challenges, such as housing and nature conservation. Government policy states that water and soil must be taken into account in spatial planning, but opinions differ on how to do so. It is a challenge to make this principle practically applicable, so that the role of water and soil is properly factored into these considerations.

Costs of damage and risks

Flooding and drought pose significant risks to homeowners and the economy. Damage resulting from flooding and waterlogging is not always covered by insurance. The Dutch government can provide assistance under certain conditions, but it can never compensate for all damage in the event of a disaster. Currently, a public-private compensation infrastructure for compensating damage caused by flooding and waterlogging is lacking. This creates uncertainty and, therefore, has negative consequences for citizens and the business climate. Choices need to be made to achieve an effective and fair distribution of the costs and risks of water damage.

In-depth study

A document that goes into greater depth on the issue is also published with this report (in Dutch). In this study, the five socio-economic issues related to water management problems are discussed in more detail. In addition, the study highlights current efforts to address these problems.

 

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