Investments for Water
Co-Chairs:
France and South Africa
Co-Convenors:
World Bank Group, UNITAR and IFAD
Financing, technology & innovation, and capacity building
Context
Delivering on global water-related goals, including SDG 6, requires a robust enabling environment, as articulated in the SDG 6 Global Acceleration Framework. This includes not only sufficient and accessible financing but also timely, disaggregated data and information systems, cutting-edge technology and innovation, strengthened institutional and human capacities, and inclusive and effective governance for accelerating progress.
The UN 2023 Water Conference emphasized the need to scale up enabling conditions as a prerequisite for achieving tangible outcomes across all dimensions of the water agenda. Investing in water and sanitation is not solely about increasing financial resources; it entails a comprehensive approach that includes tools, technologies, institutional capacity, policy instruments, and partnerships. These investments not only serve human needs but also generate broad economic and social benefits, including job creation, climate resilience, and improved health outcomes. Particular attention must be given to combating water scarcity, droughts, desertification, and biodiversity loss through sustainable investments. The 2026 UN WaterConference will provide a platform to assess progress and address persistent gaps in implementation support, particularly in countries most in need.
The SDG 6 Global Acceleration Framework—launched in 2020 as part of the UN SecretaryGeneral’s Decade of Action—mobilizes UN agencies, governments, civil society, and the private sector around five accelerators: financing, data and information, capacity development, innovation, and governance. It also plays a pivotal role in guiding the implementation of the Water Action Agenda, a core outcome of the UN 2023 Water Conference, and broader water-related goals and targets.
This dialogue is directly linked to all targets under SDG 6, with particular emphasis on the SDG 6 means of implementation targets 6.a (international cooperation and capacitybuilding) and 6.b (participation of local communities). It also supports progress across the 2030 Agenda, including SDG 4 (education), SDG 9 (infrastructure and innovation), and SDG 17 (partnerships for the goals).
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Financing and investments for water remains a significant challenge. As of late 2024, only 8.9% of total official development assistance was allocated to water supply and sanitation sectors, according to the OECD. The UN 2024 progress update on the Water Action Agenda indicated that fewer than 40% of the 800+ voluntary commitments made at the 2023 UN Water Conference included a defined financial framework. The UN-Water GLAAS 2024 report found that only 25% of responding countries reported having sufficient human and financial resources to fully implement their national WASH Plans. And according to the World Bank, the global water investment gap is estimated at US$6.7 trillion through 2030. In addition, private sector participation is considerably low. According to the World Bank Private Participation in Infrastructure (PPI) Database, US$3.2 billion in new water sector public-private partnerships (PPPs) were registered globally in 2023, up from US$2.7 billion in 2022. However, private sector participation remains modest overall—estimated at less than 2% of total investment in the water sector—highlighting a persistent under-leveraging of private capital.
Persistent challenges also include gaps in technology and innovation, limited research and development, and insufficient capacity building. The International Benchmarking Network for Water and Sanitation Utilities (IBNET) reported a 15% increase in the adoption of smart metering technologies globally from 2022 to 2024, though the adoption rate in low-income countries remained below 5%. In addition, the UNESCO Science Report 2024 highlighted a 6.4% increase in global spending on water-related R&D between 2022 and 2023, with over 60% of new investments concentrated in five high-income economies. The UNESCO Institute for Statistics (UIS) recorded a 9% global increase in graduate degrees awarded in water science and engineering between 2022 and 2024. However, this remains comparatively lower than R&D investment in sectors such as energy and health. Additional data from the SDG 6 Capacity Development Blueprint suggests that only 38% of countries report having adequate institutional capacity for integrated water resources management, underscoring the scale of the capacity challenge.
Data and Trends
Challenges
Persistent underinvestment in water infrastructure and services, especially in low-income and climate-vulnerable countries, continues to hinder progress. Limited access to climate finance and low private sector participation further constrains innovation and implementation. This is further exacerbated by declining trends in ODA for water and sanitation, which places additional pressure on domestic and alternative financing mechanisms.
A lack of coordination across governance levels, sectors, and stakeholders reduces the effectiveness of water policy. Many institutions face capacity constraints in data management, enforcement, and inclusive engagement, while digital divides limit equitable access to water technologies. Inadequate mobilization of key stakeholder groups— including civil society, youth, women, Indigenous Peoples, and local communities— weakens accountability and innovation systems. These interconnected challenges highlight the urgent need for system-wide transformation and coordinated global action.
Opportunities
Mobilizing innovative financing models, such as blended finance, outcome-based funding, and water bonds, can help close the funding gap. In the context of diminishing ODA, strengthening domestic resource mobilization will also be essential to ensure sustained financing for water and sanitation services. Leveraging digital innovation—e.g., AI, big data, blockchain—for real-time water monitoring and predictive management is an opportunity. Promoting inclusive governance frameworks that integrate indigenous knowledge, genderresponsive planning, and multi-stakeholder participation. Scaling up capacity development through collaborative international efforts—including South-South, North-South, and triangular cooperation—via online learning platforms, and regional centers of excellence is needed. Framing water investments as essential for long-term economic development and climate resilience can attract new partners and enhance political commitment. Strengthening partnerships across sectors and borders will be key to aligning finance, technology, and skills. These efforts are instrumental in accelerating progress on SDG 6 and its related targets, and in advancing the broader 2030 Agenda.