How economic thinking can help us restore Europe's freshwaters

In October 2023, the WWF released a major report stating that freshwater has long been significantly undervalued in global economies, leading to widespread environmental costs. The report estimates that the annual economic value of water and freshwater ecosystems globally is $58 trillion – a figure equivalent to 60% of global Gross Domestic Product (or GDP). This startling figure was calculated by estimating the economic value that rivers, streams, lakes, reservoirs and wetlands generate to human societies. The report showed that freshwater ecosystems are not only vital for sustaining everyday societies, but they also provide invaluable life-support systems which help maintain the health of both people and the planet. In this episode of the MERLIN podcast co-hosts Rob St John and Sien Kok deep-dive into key topics around the economics of water.

Rob and Sien explore how economic thinking can help make more informed decisions about how to manage freshwater ecosystems, and similarly how it can strengthen arguments over the pressing need to conserve and restore them. We hear expert perspectives from three individuals working in water economics in Europe – Eduard Interwies, Phillipe Le Coent and Rob van der Veeren – alongside an ecologist's perspective from MERLIN project leader Daniel Hering. The interviews introduce key concepts such as cost-benefit analysis, water pricing and the polluter pays principle, and how they relate to policies like the EU Nature Restoration Law and Water Framework Directive, and environmental management approaches like nature-based solutions.