The quiet crisis
Canada holds nearly 20% of global freshwater reserves, yet regional scarcity is rising fast. Prairie droughts, B.C. wildfires, and agricultural overuse threaten reliability. The Parliamentary Budget Office warns that water-related GDP losses could reach $5 billion annually by 2035.
| Region | Water Stress Index (2030 proj.) | % GDP Exposed | Source |
|---|---|---|---|
| Prairies | High | 18 % | ECCC 2025 |
| Ontario | Moderate | 25 % | PBO |
| B.C. Interior | High | 11 % | NRCan 2025 |
| Atlantic Canada | Low | 6 % | PBO |
Economic implications
- Industrial users (mining, energy, agri-food) face higher compliance and capital costs.
- Municipal water infrastructure is underfunded by $50 billion (FCM).
- Climate change makes drought-to-flood cycles more volatile, damaging assets and insurance models.
What leaders can do
- Quantify water risk exposure in asset and supply-chain maps.
- Invest in closed-loop and greywater systems — ROI within five years.
- Support water-pricing reform. Sustainable rates drive efficiency.
- Join watershed partnerships with Indigenous and local stakeholders.
Arcus Insight: Water is Canada’s next carbon. Pricing, conservation, and innovation will determine future competitiveness.