This post is part of WRI's "Extreme Weather Watch" series, which explores the link between climate change and extreme events. Read our other posts in this series.
As much of the United States continues to suffer through what the National Oceanic and Atmospheric Administration (NOAA) has called the country’s most extensive drought in more than 50 years, there is growing concern over how broad and severe the impacts may be. Events like this drought—which are projected to become increasingly common should climate change continue unabated—provide a sharp reminder of how heavily communities and global economies rely on water.
They also teach another lesson: Natural resource challenges like water scarcity cannot simply be viewed as environmental issues. They are real, material drivers of risk that governments, businesses, and investors must carefully consider in the context of the global economy.