Publications > Research and supporting analysis

UK projections of climate risks and effectiveness of adaptation measures for water scarcity (WSP, Cambridge Econometrics, Cranfield University, and HR Wallingford)

Published:
20 May 2026

Assessment:
CCRA4-IA

Type:
Research and supporting analysis

Country focus:
UK

About this document

The Climate Change Committee (CCC) commissioned WSP, Cambridge Econometrics, Cranfield University, and HR Wallingford to assess estimated economic losses from water scarcity in agriculture, industry, and power generation, and the effectiveness of adaptation actions in reducing economic losses.

This report reflects the views of WSP, Cambridge Econometrics, Cranfield University, and HR Wallingford and does not represent the views of the CCC.

Key messages

There are substantial current direct economic losses from chronic water stress to agriculture, industry, and power generation in the UK, in the region of £3.8 billion per year today, which present as current inefficiencies in industries that are largely built to deal with current levels of water stress. Inclusion of indirect economic losses would further increase this figure.
As water stress increases in the future, these direct economic losses have been calculated to increase by a further £2 billion, reaching £5.8 billion per year by the middle of the 2050s.
Adaptation actions identified for agriculture, industry, and power generation can meet the water demand identified in most of the current and future scenarios assessed across the UK. By implementing these measures, direct economic losses could be reduced by more than the cost of these adaptation actions. This demonstrates that proactive adaptation measures offer a significant cost-benefit advantage.