Axel van Trotsenburg, Senior Managing Director at the World Bank Group, addressed the pressing issue of water security at the "Financing Water Security: Increasing Investments to Close the Gap Between Water Demand and Supply" event. Van Trotsenburg highlighted that over 2.2 billion people lack access to safe drinking water, with 3.5 billion living without safely managed sanitation. He emphasized that these deficiencies affect public health, environmental sustainability, food security, and social stability.
Van Trotsenburg stressed the importance of sustainable water security by promoting policies and financing for water reuse in various sectors and integrating renewable energy into water management processes. He stated, "Water action is climate action," pointing out that current investments are insufficient to meet global needs or achieve Sustainable Development Goals.
The estimated investment required for water-related infrastructure is $6.7 trillion by 2030 and $22.6 trillion by 2050. However, public spending on water remains low compared to other sectors like transport and energy. Van Trotsenburg noted that many service providers face challenges due to low creditworthiness, which hinders their ability to secure commercial loans.
He called for improved budget execution as up to 28% of allocated funds remain unspent annually due to inefficiencies. To bridge the financing gap, he advocated for mobilizing private investments through innovative instruments such as guarantees and bonds.
The World Bank Group's new unified guarantee platform aims to increase private sector involvement in water projects. Van Trotsenburg also underscored the need for partnerships among governments, civil society, and the private sector through multi-stakeholder platforms tailored to local needs.
The World Bank Group's ongoing efforts aim to provide water access to 156 million people by 2030, with a significant focus on Sub-Saharan Africa. Their initiatives have already improved sanitation services for nearly 70 million people and enhanced water sources for over 117 million individuals.
Van Trotsenburg concluded by reaffirming their commitment through a new Water Strategy designed to scale up universal access while mitigating flood and drought risks.