A new report has outlined the critical importance of injecting funds into the development of multipurpose water infrastructure worldwide to ensure water security for the demands of the growing global population and global economy.

The ‘Water: Fit to Finance?’ report, compiled by the High Level Panel on Financing for a Water-Secure World and launched at the seventh World Water Forum, in Korea, on Monday, highlighted the increasing need for public–private partnerships to drive the construction of major water infrastructure schemes.

“In the last decade, water has gained increased attention in the global political agenda,” said World Water Council (WWC) president Benedito Braga, who pointed out that, despite global changes, such as climate change, urbanisation and population growth, justifying investments in water projects, infrastructure remained underdeveloped.

“The investment is necessary today, since water supply and sanitation [infrastructure development] alone are expected to require $6.7-trillion by 2050,” he explained.

The report, sponsored by the WWC and the Organisation for Economic Cooperation and Development, tabled seven proposals for action by governments and financial regulators, water regulators, international financing institutions, banks, commercial financing and investment institutions, industry and individual water users, water utilities and international and regional agencies.

All the recommendations centred around achieving water security for human needs, water security for economic development and water security for environmental sustainability, while establishing multipurpose water infrastructure to cater for agriculture, industry and energy sector use, besides others.

Water projects had historically been marginalised on the back of a “risk and reward” approach towards investments, a rationale where water infrastructure fell short as some components of the “huge” sums required were not financially profitable and conflicts over priorities often arose between investors.

The report stated that financial sources such as pension funds, insurance companies, sovereign wealth funds, climate funds and green bonds could assist in financing the full range of products, services and functions needed for global water security.

“We must grasp the big picture connected to water and bring together investors, bankers, economic players and public officials to tackle the infrastructure deficit in new and creative ways,” Braga concluded.