Adaptation through Water 2025

Opportunity #3: Financing AtW Despite headwinds in other regions, sustainable finance has continued to demonstrate rapid growth in Asia. The Asian Development Bank reports that in the ASEAN+3 countries (10 ASEAN member states plus China, Japan and the Republic of Korea), sustainable finance grew 29.3% in 2024, as opposed to 21% globally. Yet while the frameworks are in place to drive sustainable finance into emissions reduction and the conservation and restoration of nature, the financial infrastructure for water remains underdeveloped. Collaborating to develop this infrastructure in the region presents a significant opportunity to unlock large amounts capital for high-return projects. Demand is strong. According to a recent report by the World Economic Forum, Water Futures: Mobilizing Multi-Stakeholder Action for Resilience , water-related green bonds grew 30 percentage points faster than the overall green bond market from 2020 to 2023. As case studies such as the Belize Blue Cities and Beyond Project show, there are also opportunities to combine traditional commercial finance with innovative mechanisms to accelerate nature-related project development, such as blended finance, micro loans, PPPs, and blue and green bonds. Other approaches include outcome-based financing approaches that tie investment to measurable water conservation results, carbon credits for water-smart farming and private funding. Meanwhile, taking a nature-based solutions approach to adaptation- through-water would align more easily with existing financing frameworks. Opportunity #4: Water and nature innovation Solution providers in each ecosystem can utilize a range of novel technology tools to develop new AtW solutions These range from drought-resilient seeds and flood prediction tools to advanced irrigation systems and wastewater recovery. Such technologies, tools and techniques aid governments, communities, planners, farmers and businesses. For example, the SERVIR-Mekong AI project highlighted earlier has already helped thousands of households to preserve water and millions more to benefit from flood risk management. Adaptation through Water: Mobilizing the Private Sector for Climate Adaptation in Southeast Asia 26