Water-related investments are central to economic development. They strengthen water security and support other sectors such as agriculture, industry, energy, health and education. Yet, across OECD and non-OECD countries alike, the long-term viability of many water-related investments remains a concern.
Discussions on financing for water often focus on the scale of capital required to close investment gaps. However, the effectiveness and durability of investments depend not only on the volume of resources mobilised, but also on the quality, structure and purpose of the financing deployed. This highlights the importance of financing models that can support long-term, impactful investment outcomes.
This report examines funding and financing approaches that can improve the long-term viability of water-related investments and mobilise capital at scale. Focusing on bond finance, public–private partnerships, results-based finance and Islamic finance instruments, the report aims to help policymakers, financial institutions and investors understand how financing structures, risk allocation mechanisms and incentive frameworks influence investment outcomes over time. It also explores how underutilised pools of capital, particularly those linked to growing demand for impact-driven assets, can be mobilised more effectively.
