By 2050, over 40% of the global population is likely to live in river basins under severe water stress, and hundreds of millions are expected to remain without access to safe drinking water and basic sanitation. The resulting increase in water insecurity is likely to multiply the risk of conflict, and food price spikes caused by droughts may inflame latent conflicts and drive migration.
There is hence an urgent need for increased public and private investments in the water sector. As a public institution, the EIB has an important role to help overcome investment barriers and ensure that the projects it finances are the most suitable to address market failures and alleviate investment gaps.
The Bank’s latest Water Sector Orientation confirms the need to strengthen water security across the globe in a changing climate. Moreover, it recognises the significant impact of the water projects and the strategic role that the sector can play to mitigate the adverse impacts of climate change, in particular adaptation, and environmental sustainability.