A new report from the International Water Management Institute (IWMI) examines why water continues to receive limited attention in global financing discussions, despite its central role in climate resilience and sustainable development.

The report – Water financing: scaling up finance to the Water, Energy, Food and Environment (WEFE) Nexus”– explains that while financing for climate, nature, and development has featured prominently in recent global forums, including the three Rio Conventions, water financing remains marginal in global financial discussions.

According to the report, COP29 in Baku underscored the need to scale up adaptation finance through the New Collective Quantified Goal (NCQG), but sectoral priorities—particularly water—received limited attention. Since then, the global climate finance landscape has shifted rapidly, with several governments rolling back climate commitments and reducing public finance, heightening the urgency for private and blended finance solutions.

However, the IWMI recognises that recent negotiations at the June Climate Meetings (SB62) in Bonn marked progress in tracking adaptation finance, explicitly recognizing water under adaptation indicators.

Using a ‘WEFE Nexus’ lens, the report explores opportunities to scale up public, private and blended finance, reflecting water’s role across food systems, energy production, ecosystem health, gender equality and climate change adaptation and mitigation.

With global water financing needs exceeding USD 200 billion annually and expected to rise sharply by 2030, the report is calling for more systemic, transparent and cross-sectoral financing approaches to address escalating water insecurity.

Click here to download the report in full