Water for Prosperity
Co-Chairs:
China and Spain
Co-Convenors:
UNDP, FAO and UNIDO
Valuing water, Water-Energy-Food nexus, advancing integrated and sustainable water resource management, wastewater and water-use efficiency across sectors, and economic and social development.
Context
Building on the momentum of Interactive Dialogue 2 at the UN 2023 Water Conference, which focused on “Water for Sustainable Development”, this interactive dialogue proposes to continue this perspective by emphasizing: integrated water resource management (IWRM); cross-sectoral efficiency including in the water-food-energy nexus; and water’s true cost and benefits. The outcomes of the UN 2023 Water Conference as well as the discussions held during Interactive Dialogue 2 highlighted the urgency of systemic water management to create a long-term vision for water resilience and a need for increased investments in innovative water technologies and sustainable water management practices.
In 2026, this interactive dialogue is proposed to focus on operationalizing these insights to promote sustainable economic and social development, boost job creation, increase urbanrural resilience, and accelerate the achievement of social, economic and environmental goals in the water sector. By exploring the water-energy-food nexus and valuing and managing water efficiently across all sectors, this second interactive dialogue is suggested to reflect a growing recognition that water can be more than a natural resource and provides an opportunity to discuss how water can create a foundation for prosperity through coordinated, forward-looking action, with a focus on developing countries and vulnerable communities in the context of climate change. As a fundamental prerequisite for all industrial activities, water can be a vehicle for growth if managed sustainably.
The proposed theme of interactive dialogue 2 would focus on SDG 6 targets 6.3 (wastewater and water quality), 6.4 (water-use efficiency), and 6.5 (integrated water resources management) with interlinkages to SDG 1 (no poverty), SDG 2 (zero hunger), SDG 7 (aYordable and clean energy), SDG 8 (decent work and economic growth), SDG 9 (industry, innovation and infrastructure), SDG 11 (sustainable cities and communities), SDG 12 (responsible consumption and production), and SDG 17 (partnerships for the goals).
Recent data underscores global progress on the UN 2023 Water Conference’s call to move beyond siloed interventions and build a water-resilient economy that considers the needs of all water users and utilizes synergies between them. As of 2024 reporting, countries are increasingly producing more economic value with less water, driven in large parts by successful efforts to make agriculture less water-intensive. Water is a fundamental driver of the world’s agrifood systems, which are not only highly dependent on water but also hold significant potential to conserve this limited resource. As the largest contributor to global freshwater withdrawals, the agricultural sector holds a key role in ensuring sustainable water management and can prevent further depletion of water resources while sustaining food production.
Recent monitoring data on industrial wastewater highlights that industrial water users still discharge the majority of their effluent untreated. The limited number of countries reporting on SDG 6.3.1, which represent 8% of the world’s population, safely treat only 27 % of industrial wastewater. This shortfall exemplifies the challenges still faced by ecosystems and downstream water users.
Global water management trends show a positive improvement in IWRM implementation from 49 % to 57 % between 2017 and 2023. These global shifts in water and wastewater management also mark a slow but steady pivot from “more pipes and pumps” toward crosssector efficiency, the application of digital information systems and valuing water as a strategic asset. As global water demand is growing, these trends will require further acceleration to ensure that water can be a driver for prosperity.
Data and Trends
Challenges
Despite positive trends in IWRM implementation and water-use efficiency, the pace of change remains too slow, constrained by cross-sectoral competition for limited water resources and by insuYicient coordination among water users. At current trajectories the global target to achieve 91% IWRM implementation by 2030 will not be met until mid-century, leaving billions of people in countries with fragmented water management structures, weak cost-recovery mechanisms, and chronically under-funded basin authorities. Meanwhile an estimated 113 billion m³ of untreated household wastewater each year continues to threaten rural livelihoods and fragile ecosystems. The undervaluation of water in national accounts deters private capital and slows the implementation of circular economy pilots and climate-resilient water infrastructure. Additionally, limited technical and human capacities further hampers innovation uptake.
Even water-scarce areas that have boosted water-use efficiency face climbing demand from agriculture, energy, and rapid urbanization amid less predictable precipitation patterns. If not addressed, these compounding obstacles will keep the full promise of the water-foodenergy nexus approach and its potential for green jobs and equitable prosperity just out of reach. As the most water-intensive sector responsible for total withdrawals of 72% of the world’s freshwater, agrifood systems transformation is of critical importance, as food demand is projected to climb by 50% by 205012 compared to 2012. In addition, the energy sector 13 accounts for around 10% of global freshwater withdrawals, mainly due to the high water demand of steam turbines in thermoelectric power plants. Hydropower plants, which generate 17% of the world’s electricity can additionally strain downstream farmers whenever reservoir levels are held back to allow peak electricity generation.
Opportunities
There are clear opportunities to scale innovative technologies, to diversify water supplies by utilizing safe water reuse and decentralized water treatment systems. Potable and nonpotable reuse schemes, for example for food production, that close the supply loop not only ease pressure on conventional water sources but also unlock the value of treated wastewater, creating new value chains in water, nutrient, and resource recovery. Other nonconventional water sources that may be utilized depending on local contexts include seawater desalination and rainwater harvesting. Conventional water sources offer opportunities for innovation as well. Groundwater, the world’s main source of domestic (household) water, can be replenished through managed aquifer recharge and, where alternatives are scarce, made usable via brackish groundwater desalination.
Additionally, scaling innovations that address water efficiency challenges, such as waterresilient food systems and artificial intelligence-driven leak detection systems, can curb water losses and embed greater resilience in water management schemes. Integrating these new technologies into existing water management schemes will require physical infrastructure investments and the training of technical staff to build and operate these nonconventional water systems, creating new jobs in the circular economy.
Climate adaptation finance mechanisms offer potential vehicles to enable IWRM-aligned investments, particularly when proposals frame water as a co-benefit for food, energy, industry, and ecosystem outcomes. Embedding natural-capital accounting, full-cost pricing and digital metering in national and local budgets can make water projects more bankable and attract private capital while maintaining equity through subsidy and rebate programs. Together, these levers provide a pragmatic path for countries to translate high-level pledges into cross-sector water governance to achieve sustainable economic development.