Adaptation through Water 2025

Water is fundamental to life, ecosystems and economies, yet climate changes are profoundly altering the natural water cycle, leading to more frequent and severe extreme weather events. In Southeast Asia, one of the regions most vulnerable to climate change, the urgency to adapt to these intensifying climate hazards has never been greater, as the region faces escalating social, economic and environmental pressures. Yet adaptation efforts in Southeast Asia often remain fragmented and siloed, lacking a unified narrative that can effectively bring together public and private sector stakeholders to address interconnected adaptation challenges. Water, as it relates to engineered drinking water and sanitation systems, is commonly classified as one of the core systems that needs to adapt to climate change. Others include agriculture, disaster risk management, infrastructure, urban environments, the financial system and the natural environment. But in reality, water, conceived of more broadly, underpins the climate vulnerabilities of all these systems and could therefore provide a tangible, investible and unified narrative for climate adaptation. Hence, we introduce the concept of adaptation through water (AtW), an approach that places water at the centre of climate adaptation discussions. AtW allows for a unique and silo-breaking coalition of actors to come together to create solutions that address climate challenges by influencing the natural and engineered water cycles to protect populations, resources and economies. AtW also allows for greater action by the private sector in climate adaptation. Businesses from all industries are increasingly finding it necessary to invest in efforts to protect against climate risks involving too much water, too little water or too dirty water. Adaptation through water helps businesses build on these actions to strengthen climate adaptation, by developing solutions and opportunities for other businesses, solution developers and investors to mitigate risks, safeguard supply chains, drive efficiency and seize economic benefits through innovative approaches. These range from nature-based solutions and efficiency technologies to AI-driven tools and creative funding mechanisms. This report analyses the key water challenges Southeast Asian countries face, their wide-ranging impacts and the urgency of collective action. Then, based on extensive research, including the study of nearly two dozen innovative projects throughout the world, it offers an action framework, opportunity analysis and a set of cases from other regions. It aims to lay the groundwork for stakeholders across Southeast Asia to collaborate around water, encouraging increased investment and coordinated adaptation efforts. Written by the World Economic Forum, in collaboration with Boston Consulting Group, the report serves as the position paper for the Southeast Asia Partnership for Adaptation through Water (SEAPAW), an initiative of the Singapore International Foundation (SIF), in collaboration with the World Economic Forum, and the first platform in the region to focus on water as an approach to climate change adaptation. We extend our thanks to SEAPAW members and communities for their invaluable contributions to this report. We hope that this water-centred lens will accelerate region-wide actions on adaptation and can be exported to other parts of the world.Adaptation through Water: Mobilizing the Private Sector for Climate Adaptation in Southeast AsiaJune 2025 Foreword Eric White Head, Climate Adaptation, World Economic ForumDave Sivaprasad Managing Director and Partner, Boston Consulting Group (BCG) Adaptation through Water: Mobilizing the Private Sector for Climate Adaptation in Southeast Asia 3