New Delhi, Dec. 25 -- For much of the past three decades, carbon has been the main focus of climate policy. But as we head into 2026, a new crisis is tightening its grip: water scarcity. According to Ernst & Young's 2026 Geostrategic Outlook, water is no longer just an environmental issue. It is now at the heart of industrial strategy and global competition, and the centre of geopolitical and economic decision-making.

Water stress is already a reality. Nearly four billion people face severe water shortages for at least one month every year, making it a present-day baseline rather than a distant projection. Recent droughts and heatwaves in 2024 and 2025 have shown how quickly these shortages lead to higher food prices and political unrest...