An environmental lens on policies for better lives
By Marijn Korndewal and Sophie Trémolet, OECD Environment Directorate

With the French President and the Mayor of Paris looking to take a dive in the river Seine soon, water quality is hot news in France in the run-up to the Olympics. The burning question is will the river be clean enough for hosting the world’s Olympic athletes? Although making the Seine swimmable in Paris has been a target for decades, the suspense is still on. Following peak rain showers, high levels of E. coli bacteria are often recorded, which could make swimming a health hazard.
Water pollution is a global issue, affecting high- and low-income countries alike. Despite significant investment in wastewater treatment, quality of freshwater resources is set to worsen in many countries due to a growing population, more and new pollutants, and global warming. The quality of our precious groundwater reserves is also often severely degraded, rendering those reserves unusable.
Polluted waters, particularly those contaminated by raw sewage, spread diseases and carry unpleasant odours. In 2019 alone, water pollution caused 1.4 million of premature deaths. But even with adequate wastewater treatment, as is the case in most OECD countries, pollutants are continuously released into the environment, with waste leaching from landfills or industrial wastewater discharges. Excessive nitrogen releases associated with farming and urbanisation can lead to algal blooms and significant losses of plant and fish species. Residues of the medicines we consume and excrete in our toilets are found in the environment, such as the birth control pill.
A concern for human health? Yes, especially when water is not adequately treated. A concern for ecosystems? Absolutely. Take the example of endocrine disruptors, that end up in water through treated and non-treated wastewater, landfills and agriculture. Even at very low concentrations or in combination with other chemicals, endocrine disruptors can be harmful to fish reproduction.
The cost of water contamination in OECD countries is likely to surpass billions of dollars each year. The World Bank estimated that increased levels of biological oxygen demands alone can hinder downstream GDP growth by 0.82 percentage points, and 1.16 percentage points in middle income countries. Economic costs include health-related expenditures, water treatment costs, reduced property values, the deterioration of ecosystem services, and repercussions on sectors like agriculture, industrial production and tourism.
The OECD has been working on the economics of water pollution since the 1960s, examining in turn pollution associated with detergents, pesticides in the environment, or lake eutrophication. The OECD was also one of the lead architects of the Polluter Pays Principle back in 1972.
We know that addressing water pollution requires sustained efforts over a long period. In many cases, this calls for hard choices. Governments need to balance diverging interests between environmental limits and societal demands on nature. Poor water quality was the backdrop for the 2022 heated farmers’ protests in the Netherlands: they opposed government’s policy to tackle excessive nitrogen pollution to meet natural habitat objectives as this required many of them to significantly reduce their livestock.
Based on OECD’s work, we have identified six trends that policy-makers need to consider in order to step up their efforts to tackle the water quality challenge: