The Sustainable Water Investment Summit 2023 was a major event focused on sustainable water investments and financing. With water scarcity and pollution becoming pressing global issues, there is an urgent need to scale up investments in water infrastructure and technologies. This summit brought together leading stakeholders across policy, business, finance and technology to drive action. There were several key takeaways for those looking to invest sustainably in water. water investment is increasingly seen as an impact investment opportunity. Innovative financing mechanisms are emerging to fund clean water projects. Public-private partnerships are vital to mobilizing capital at scale. Investing in nature-based solutions and green infrastructure offers multiple co-benefits. Data and technologies like AI and cloud computing can optimize water use and infrastructure. Overall, the future looks bright for water investment given the policy momentum and business case, but we need more creative partnerships and financing models to accelerate progress.
Water investment set to grow driven by global policy action on water crises
The summit highlighted that we are at a pivotal moment for water investment. With the UN’s Sustainable Development Goals setting targets on water access and sanitation, and growing recognition of water’s role in climate adaptation, there is strong policy momentum for action. Many national governments have stepped up investments in water infrastructure and management over the past decade. The stimulus funding made available through Covid-19 recovery packages has also catalyzed additional public investment globally. Looking ahead, governments are expected to strengthen regulations and incentives around sustainable water use by corporations and investors. This policy landscape makes the business case for water investment increasingly clear. By taking a proactive approach now, investors and businesses can position themselves competitively in what promises to be a rapidly growing market for water solutions.
Innovative financing models emerging to scale up water investment
While government investment is ramping up, there remains a huge financing gap in the trillion dollars to meaningfully expand global access to clean water and sanitation systems. This is opening opportunities for private investors to step in. Impact investors are increasingly targeting water projects, seeing the environmental and social returns they can generate. Meanwhile, new financing mechanisms like water investment funds and water benefit certificates are emerging to bundle up and securitize water infrastructure projects to attract institutional investors. Groups like CDP Global Water Report 2022 are also driving greater transparency and standardized disclosure around corporate water use, risks and strategies. This data helps investors assess opportunities. Collaborative initiatives between the public and private sector, like the African Water Investment Programme launched at the summit, can also help derisk and stimulate greater flows of financing.
Investing in nature critical for sustainable water outcomes
The summit highlighted the huge, untapped potential of nature-based solutions and green infrastructure to achieve sustainable water management. Protecting and restoring forests, wetlands, floodplains and watersheds has great value for improving water quality, managing floods and droughts, and building climate resilience. However, less than 1% of total water infrastructure spending goes towards these approaches. Speakers called for more investment in conservation, reforestation and regenerative agriculture. Combining natural and built infrastructure can also be highly cost-effective and create environmental co-benefits. Green spaces and parks in cities, for instance, can absorb stormwater runoff and recharge groundwater supplies. Investors have a key role to play in funding and incentivizing nature-based approaches.
Technology and innovation key to optimizing water use
Speakers emphasized that we need major leaps in water efficiency alongside expanding supply and infrastructure. Data analytics, artificial intelligence and the Internet of Things are enabling smart management of scarce supplies. Cloud-based platforms can crunch real-time data from sensors and meters to detect leaks, target maintenance and shape consumer use. Companies like Klir and Utilis are applying AI to trace underground water flows and moisture levels. In agriculture, startups like CropX are using tech to support ultra-efficient irrigation and reduce wasteful overwatering. Modular solutions can also scale up access to clean water, from solar-powered desalination to decentralized treatment systems. Overall, technology unlocks huge potential for optimizing every drop of water.
The Sustainable Water Investment Summit 2023 signaled the tremendous opportunities emerging around water infrastructure and technology investment given the urgent global need and policy momentum. Realizing the full potential requires creative partnerships, innovative financing mechanisms and greater focus on nature-based and high-tech solutions. By taking a proactive approach, investors and businesses can secure competitive first-mover advantages in this vital emerging space.