A holistic framework to transform food- water systems1 Creating more sustainable, interconnected food and water systems is critical to ensure the future of both humanity and nature. Emerging economies are leading the way. Food and water are as essential to life on earth as a functioning, healthy global economy. Worldwide, the food and water sector is a $14 trillion market with consistent overall annual growth of 6%.12 Two-thirds of global jobs are water dependent.13 However, freshwater systems are buckling under soaring demand – especially from agriculture, which accounts for 70% of the world’s total freshwater withdrawals.14 Global freshwater demand is predicted to exceed supply by 40% by 2030,15 with the hydrological cycle – nature’s replenishment mechanism – increasingly disrupted by climate change, pollution and over-extraction. Events such as droughts and floods, combined with geopolitical tensions, are intensifying pressure on food prices which reached a record peak in 2022.16 Looking ahead, by 2050, sustaining the world’s 9.7 billion people will require a 30% increase in water resources and a 60% increase in food production.17 Meanwhile, more than 40% of all species on earth depend on wetlands and rivers, either directly or indirectly, for their survival.18Freshwater systems are buckling under soaring demand – especially from agriculture, which accounts for 70% of the world’s total freshwater withdrawals. Food and water systems worldwide face five critical and interconnected challenges (see Figure 1): –Imbalances in food supply and water scarcity. –Health problems stemming from dietary patterns as well as mass food production methods and water pollution. –Greenhouse gas (GHG) emissions from current value chain practices. –Degradation of ecosystems caused by land conversion, overexploitation and pollution. –Vulnerabilities resulting from climate change. These challenges, which are closely linked to energy systems, public health and urbanization, carry global impacts – but emerging economies bear the heaviest burden. For example, over 95% of people experiencing food scarcity live in emerging markets.19 Globally, 25 countries are facing extremely high water stress, of which 16 are in the Middle East and North Africa.201.1 Shared challenges, unequal burdens From Scarcity to Solutions: Food-Water Innovation in Asia and the Middle East 6

From Scarcity to Solutions 2025