Tackling Water Bankruptcy: The Role of Governance and Finance – CPI

Today, 2.2 billion people lack access to safely managed drinking water, and 3.5 billion people live without safely managed sanitation (UNSD, 2024). Action is urgently needed. AIIB’s recent Where the Water Flows report offers clear pathways for addressing these challenges in an increasingly destabilized hydrological environment. Yet, financing remains insufficient: an additional USD 140.8 billion in investment is needed annually to meet SDG targets 6.1 and 6.2 by 2030 (World Bank, 2024). 

Traditional water funding modalities – tariffs, taxes, and transfers – are under strain, jeopardizing sustained investment and potentially widening the funding gap. Innovative governance models and financing solutions have a critical role to play in this evolving landscape. As the World Bank operationalizes its new global initiative Water Forward, there is a growing need for alignment and dialogue on the strategic allocation of capital for water, alongside the potential of new financing and governance models. 

This event, held on the sidelines of the IMF and World Bank Spring Meetings, convened water finance practitioners actively leveraging innovative governance and financial approaches to fund water in emerging markets.

Opening remarks were delivered by Zou Jiayi, President and Chair of the Board of Directors, AIIB.

Speakers included: