.jpg/_jcr_content/renditions/cq5dam.web.480.9999.jpeg.cdn.res/last-modified/1742458186146/cq5dam.web.480.9999.jpeg)
Can glacier accretion and wealth go hand in hand?
Glaciers are more than majestic masses of ice. Glaciers form the backbone of the world’s freshwater resources and are a critical lifeline for both our eco- and economic systems. World Water Day 2025, which is also the first World Glacier Day, offers a unique opportunity to reflect on the inestimable value of these natural reservoirs and the urgent need to protect them.
Glaciers are melting before us and because of us
An unimaginable 2.2 billion people live without access to clean water. In response to this, in 1993 the United Nations established World Water Day, held on 22 March each year, to reflect on the importance of water and how we can all work together to solve water problems. Many themes have already been discussed: water and energy, groundwater, water and peace,... This year, 'glaciers' will be the focus of attention. That is a logical choice, because the importance of glaciers cannot be overstated. According to the World Meteorological Organisation (WMO), 70% of all the world’s fresh water is stored in the form of snow and ice. And 10% of the Earth's surface is covered by glaciers or ice shelves.
If all the world’s glaciers and ice shelves were to melt, sea levels would rise by as much as 6 metres. That would put a catastrophic strain on dunes, dykes and storm surge barriers.
Anthony Sandra, Portfolio Manager at KBC Asset Management
A glacier is a very special natural phenomenon that is always in motion. At the top of the glacier, snow crystallises into ice, causing the glacier to grow. The ice mass then slides down the slope or mountain and pieces break off at the bottom, causing that portion of the glacier to melt away again. However, if the ice starts melting too fast, it can lead to severe landslides and downstream flooding. The disappearance of glaciers and ice sheets means that fewer solar rays are reflected back from the Earth’s surface, making the globe even warmer and causing the ice to melt even faster. ‘If all the world’s glaciers and ice shelves were to melt, sea levels would rise by as much as 6 metres. That would put a catastrophic strain on dunes, dykes and storm surge barriers,’ says Anthony Sandra, Portfolio Manager at KBC Asset Management. ‘That would lead to more ingress of saltwater on to the land via the coasts and rivers. It’s a process called salinisation. It is detrimental to the freshwater supply that we need for all kinds of things. And that 'we’ equates to a very large number of people: two billion people depend directly on the meltwater that fills our rivers worldwide. Examples abound: farmers using water to irrigate their land, industry using the river as a means of transportation, power producers using the river as a source of hydroelectric energy, fishermen who provide us with freshwater fish, and many more besides’
Protecting what we hold dear
Anyone who has spent a holiday in the Alps may have hiked on one of the glaciers that supply water to rivers such as the Rhine, Rhöne and Danube. A little further afield, rivers like the Ganges and Indus in India or the Mekong in Vietnam and the Yangtze in China draw their water from the Himalyas. If you travel regularly to one of these areas, you cannot fail to have noticed how the glaciers are retreating further every year because they are growing too slowly. It is for this reason that UNESCO has protected glacier areas worldwide and installed sensors to monitor glacier developments. This also makes it possible to forewarn downstream populations in the event of an imminent dam breach, landslide or flood.
Some pilot projects have already been launched to combat glacier melt in the short term. Unfortunately, this is just the tip of the iceberg. Permanent solutions still need to be found to further reconcile economy and ecology.
Anthony Sandra, Portfolio Manager at KBC Asset Management
Meanwhile, efforts are being made in the short term to protect glaciers whilst at the same time dealing with the effects of the faster rate at which they are melting. ‘In Switzerland, the glaciologist Matthias Huss from the University of Fribourg has been carrying out tests since 2018 on covering the Rhone Glacier with geotextiles during the summer months,’ says Sandra. ‘The initial results are promising, reducing the rate at which the ice melts by 50% to 70%. Unfortunately, this solution is too expensive to be scalable. Covering all the 1 000 Swiss glaciers would cost around 1.5 billion euros a year. Moreover, microplastics from the geotextile can enter the drinking water system, leading to an adverse impact on public health.’
‘The University of Lucerne has therefore taken a different approach, involving converting meltwater from the Diavolezza Glacier back into snow. By doing this, they are hoping to imitate the natural cycle,’ Sandra adds. ‘For the Swiss, this protection is essential to maintain their ski resorts, which are an important source of income. Unfortunately, this is not an option for the Himalayan and Arctic glaciers, because they are either at too high an altitude or too remote from civilisation, and the cost would be completely prohibitive.’
‘Reforestation of mountain slopes also helps protect glaciers. Forests are a natural carbon sink, absorbing more carbon dioxide than they release. Their root network also helps to stabilise the soil and prevent landslides. During summer, transpiration through their leaves helps keep the air moister and cooler. Forests are also a source of income, in that the wood can be used for various applications. And tourists who walk or hike in the forest will spend money on food and local accommodation. In doing so, they support the local economy,’ says Sandra.
Mitigating the downstream impact
Downstream, dams will have to be raised and reservoirs built to collect and store meltwater, possibly combined with a hydroelectric pumping station. The natural meander of rivers must be restored in order to increase their water capacity.
In coastal areas, there is a need to protect against rising sea levels. In response to this, in Belgium the Flemish government has approved the 'Coastal Vision' policy plan. This plan is focused on raising and widening the dune and dyke systems, as well as moving the beaches an average of 100 metres out towards the sea. The space created can then be used for recreation and nature. Other items on the agenda include strengthening the port infrastructure by constructing an open harbour entrance, storm surge barrier or floodgates. If these measures are taken, the Belgian coast could withstand a rise in sea levels of up to three metres.
Do glaciers make your heart melt, too?
How can we avoid further melting of the world’s glaciers? In the long run, the only way to achieve that is by further reducing our greenhouse gas emissions.
Anthony Sandra, Portfolio Manager at KBC Asset Management
The energy transition, energy efficiency, carbon storage, etc., are just some of the solutions to combat global warming. ‘This also presents opportunities for investors who target companies that offer these sustainable and smart solutions,’ Sandra believes. ‘These are companies such as producers of capital goods that enable the energy transition, renewable energy producers, facilities for more energy-efficient production processes, sequestering of greenhouse gases from the air, and so on.’
It takes a long time to turn an oil tanker around, so both short and medium-term solutions are needed to protect against the impact of melting glaciers,’ Sandra argues. ‘Investors can capitalise on this through consultancy firms that provide advice to governments and other businesses. These consultancies help identify areas where flood protection is most urgent, such as near rivers and coastal strips. They also analyse what adjustments can be made to reduce the impact on water resources.’
‘Data is essential here. This data can be obtained from companies active in the field of satellite technology. Among other things, they can monitor large areas, compile forecasts using the latest climatological data and map vulnerable zones. People living in those areas can then be given timely warning of impending natural disasters.’
‘Once the priorities have been set, infrastructure companies can get to work modifying or strengthening dykes, dams and locks, creating wetlands and wadis, restoring or planting river banks and forests, and so on,’ Sandra concludes.
World Water Day 2025 reminds us that action now is essential, both for our planet and for our wallets.
Want to learn more about responsible investing?
The information contained in this publication is for information purposes only and should not be considered as investment advice.
