Water financing: scaling up finance to the Water, Energy, Food and Environment (WEFE) Nexus

Financing for climate, nature, and development has featured prominently in recent global forums, including Climate COP29, Nature COP16, Desertification COP16, the World Bank/IMF Annual Meetings, and the International Development Association (IDA) replenishment. Yet, despite water being central to cl...

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Autores principales: Ravindranath, Darshini, Steele, P.
Formato: Informe técnico
Lenguaje:Inglés
Publicado: International Water Management Institute 2026
Materias:
Acceso en línea:https://hdl.handle.net/10568/180202
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author Ravindranath, Darshini
Steele, P.
author_browse Ravindranath, Darshini
Steele, P.
author_facet Ravindranath, Darshini
Steele, P.
author_sort Ravindranath, Darshini
collection Repository of Agricultural Research Outputs (CGSpace)
description Financing for climate, nature, and development has featured prominently in recent global forums, including Climate COP29, Nature COP16, Desertification COP16, the World Bank/IMF Annual Meetings, and the International Development Association (IDA) replenishment. Yet, despite water being central to climate resilience and sustainable development, water financing remains marginal in global financial discussions. 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. Recent negotiations at the June Climate Meetings (SB62) in Bonn marked progress in tracking adaptation finance, explicitly recognizing water under adaptation indicators. This paper examines opportunities to scale up water financing within current and future financial commitments, particularly through a Water–Energy–Food–Environment (WEFE) Nexus lens. Water underpins food security, energy production, ecosystem health, gender equality, and the circular economy, while also facing growing risks from climate change. Although water’s role in adaptation is widely acknowledged, emerging evidence also highlights its relevance for mitigation, with the water sector contributing significantly to global emissions. With global water financing needs exceeding USD 200 billion annually—and expected to rise sharply by 2030—systemic, transparent, and cross-sectoral financing approaches are critical to addressing escalating water insecurity.
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spelling CGSpace1802022026-01-21T03:54:47Z Water financing: scaling up finance to the Water, Energy, Food and Environment (WEFE) Nexus Ravindranath, Darshini Steele, P. water markets financing scaling up energy food security environment nexus approaches climate change climate finance Financing for climate, nature, and development has featured prominently in recent global forums, including Climate COP29, Nature COP16, Desertification COP16, the World Bank/IMF Annual Meetings, and the International Development Association (IDA) replenishment. Yet, despite water being central to climate resilience and sustainable development, water financing remains marginal in global financial discussions. 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. Recent negotiations at the June Climate Meetings (SB62) in Bonn marked progress in tracking adaptation finance, explicitly recognizing water under adaptation indicators. This paper examines opportunities to scale up water financing within current and future financial commitments, particularly through a Water–Energy–Food–Environment (WEFE) Nexus lens. Water underpins food security, energy production, ecosystem health, gender equality, and the circular economy, while also facing growing risks from climate change. Although water’s role in adaptation is widely acknowledged, emerging evidence also highlights its relevance for mitigation, with the water sector contributing significantly to global emissions. With global water financing needs exceeding USD 200 billion annually—and expected to rise sharply by 2030—systemic, transparent, and cross-sectoral financing approaches are critical to addressing escalating water insecurity. 2026-01-20 2026-01-20T11:23:30Z 2026-01-20T11:23:30Z Report https://hdl.handle.net/10568/180202 en Open Access application/pdf International Water Management Institute Ravindranath, D.; Steele, P. 2026. Water financing: scaling up finance to the Water, Energy, Food and Environment (WEFE) Nexus. Colombo, Sri Lanka: International Water Management Institute (IWMI). 24p.
spellingShingle water markets
financing
scaling up
energy
food security
environment
nexus approaches
climate change
climate finance
Ravindranath, Darshini
Steele, P.
Water financing: scaling up finance to the Water, Energy, Food and Environment (WEFE) Nexus
title Water financing: scaling up finance to the Water, Energy, Food and Environment (WEFE) Nexus
title_full Water financing: scaling up finance to the Water, Energy, Food and Environment (WEFE) Nexus
title_fullStr Water financing: scaling up finance to the Water, Energy, Food and Environment (WEFE) Nexus
title_full_unstemmed Water financing: scaling up finance to the Water, Energy, Food and Environment (WEFE) Nexus
title_short Water financing: scaling up finance to the Water, Energy, Food and Environment (WEFE) Nexus
title_sort water financing scaling up finance to the water energy food and environment wefe nexus
topic water markets
financing
scaling up
energy
food security
environment
nexus approaches
climate change
climate finance
url https://hdl.handle.net/10568/180202
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