Water in focus by the World Economic Forum

The World Economic Forum (WEF) Annual Meeting, held in Davos from January 19 to 23, focused on the theme “A Spirit of Dialogue,” emphasizing water as a critical strategic topic concerning resilience, economic growth, and planetary boundaries.

Financing and Stewardship of Water Resources

One key session under the theme Water in the Balance, addressed the significance of water as an economic asset. The session underscored several critical points:

• There is an urgent need to enhance investment and financing, specifically for water stewardship.
• Innovative financial tools are being explored, including micro-financing, tailored corporate solutions for local communities, and debt-for-nature swaps.
• Research shows that investments made upstream in water management lead to substantial benefits downstream, where every $1 invested yields $2.15 in benefits.
• There remains a notable annual investment gap in water financing.

Blue Davos and the Year of Water

The WEF has proclaimed 2026 as the “Year of Water,” coinciding with the upcoming UN Water Conference. Through the Blue Davos initiative, the WEF is integrating freshwater, ocean, and blue economy efforts, viewing comprehensive water stewardship as essential infrastructure for:

• Economic prosperity
• Food systems
• Climate resilience
• Global stability

Some economic Insights

• The estimated annual economic value of water ecosystems is $58 trillion.
• Currently, only 2-3% of global water investment comes from the private sector.

Addressing the Water Infrastructure Gap

A prominent WEF report highlights a potential global water infrastructure gap of €6.5 trillion by 2040. Closing this gap could unlock an additional €8.4 trillion in GDP and create 206 million jobs. Key factors driving this need include:

• Ensuring equitable access to water
• Developing climate-resilient infrastructure
• Implementing circular water use practices
• Incorporating digital innovations

The full report is available here.

Emerging Water Risks

The WEF Global Risks Report 2026 identifies rising concerns related to water, including:

• Extreme weather events, recognized as the most severe long-term global risk
• Threats to water infrastructure stemming from aging assets, climate challenges, digitization, and geopolitical tensions
• Increasing worries regarding water usage in data centers and the vulnerability of digitalized water systems

The report is available here.

Water has transitioned from being a secondary topic to becoming foundational for resilience, security, and prosperity.