Water Investment Set to Accelerate as Climate Adaptation Costs Mount


February 15, 2024 (www.waternewswire.com) Water security will become the biggest global investment theme over the next decade as global temperatures rise, according to a new report published by Global Water Intelligence this month. It includes an analysis of weather-related insurance which shows that at least 69% of the cost of climate change is water related.

Investing in a Water-Secure Future makes the point that value at risk from extreme weather events - droughts, floods, rising sea-levels, storms and wildfires - is set to increase sharply, especially now we have officially crossed the UN's 1.5°C target. With the El Nino ocean warming effect continuing into 2024, climate change adaptation - and water security in particular - is becoming an even bigger global imperative.

The report, which is published in partnership with investment firm XPV Water Partners, argues that better water management - in agriculture, cities and industry - holds the key to water sustainability and climate adaptation. It suggests that water security will eventually match globalisation, the digital revolution and the energy transition in its power to shape global capital flows.

The report predicts that over the next decade capital employed in delivering water security will increase from $3.8 trillion to $12.6 trillion. Alongside this growth there will be a major increase in the proportion of funding coming from the public sector. Historically 78% of the capital employed in water has been financed by governments: by 2034 this figure will fall to 43%.

The report's editor, GWI Publisher Christopher Gasson, said: "Water is scary. Great civilisations have been ruined by too much of it or too little of it. If we want to escape the fate of Mayans or the Akkadians, we must invest in climate change adaptation, and that means spending more on water security.

"Investing in a Water-Secure Future identifies the scale of the challenge and outlines some of the solutions that politicians, business leaders and farmers should consider as they calculate the value at risk. What is still missing is the financial innovation that will open the way for the scale of finance required."

David Henderson, Founder and Managing Partner of XPV Water Partners, said: "There is no question that global water security is an immense and immediate challenge. Water sustainability is the only way forward, and it offers an unprecedented opportunity to both innovate and scale the solutions our planet needs now."

About Global Water Intelligence (GWI): GWI researches and publishes business data and information about water markets worldwide. Based in Oxford, UK, it also has offices in Singapore and USA (Austin, Texas), and has researchers and office staff in many other countries. It publishes three subscription titles, a weekly GWI Briefing email and around four individual reports per year on particular water sectors/geographic regions. It also organises one of the major events for the water industry each year: The Global Water Summit.

About XPV Water Partners: XPV Water Partners is a team of experienced operators and investors who are committed to making a difference in water. The firm manages investment capital from some of the world's top institutional investors, and partners with emerging water-related companies to help them rapidly expand and achieve their strategic goals. XPV aims to generate strong, risk-adjusted returns for its investors by leveraging its trusted ecosystem, deep industry knowledge and its water centric company scaling platform. XPV is committed to building partnerships that contribute to growing people, sustainable businesses, prosperous communities, and a water secure future.

GWI press contact: lydia.flock@globalwaterintel.com. Media Analytics Ltd, Suite C, Kingsmead House, Oxpens Road, Oxford OX1 1XX, UK Tel: +44 1865 204208, www.globalwaterintel.com

XPV press contact: kfreek@xpvwaterpartners.com, XPV Water Partners, www.xpvwaterpartners.com

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