Bridging the %E2%82%AC6.5 Trillion Water Infrastructure Gap A Playbook 2025

By contrast, the Gulf countries are set to play a very different role, with investment strategies centred on water reuse and tech-enabled infrastructure development, reflecting ambitious targets established by local governments to advance circularity and secure long-term water resilience in one of the world’s most water-scarce regions. In Latin America, the bulk of the €757 billion investment needs are directed towards improving basic sanitation conditions and expanding access to reliable water supply. A central investment priority for utilities across the region is the reduction of non- revenue water – water distributed by a utility but lost before it can be billed to the customer, which averages around 40%, one of the highest levels globally. Oceania accounts for a relatively small share of global investment needs, around €154 billion, or 1% of the total, with heterogenous priorities, reflecting different levels of development and infrastructure coverage. Investments are projected to focus heavily on circularity and infrastructure resilience. Socio-economic impact assessment methodology BOX 2 Purpose and scope: This white paper quantifies the socio-economic benefits of global water infrastructure investment over the 2025-2040 period. Data and coverage: The analysis draws on OECD Inter-Country Input-Output (ICIO) tables, macroeconomic datasets, literature review and expert consultations. These sources were harmonized to build a global input-output model representing around 100 countries, covering between 60% and 90% of global GDP across major regions. Analytical approach: The model applies country- specific input-output multipliers to the investment needs identified in the study, estimating the effects of water infrastructure spending on economic output, gross value added (GVA) and employment. It captures direct, indirect and induced impacts across the value chain and distinguishes a total of eight archetypes of intervention (renewal and new development of: water networks, wastewater networks, water treatment plants and wastewater treatment plants), covering all the main profiles of water sector investment. Economic outputs: The model quantifies socio-economic returns, showing that every euro invested in water infrastructure generates direct, indirect and induced impacts on: (1) economic output; (2) gross value added (GVA); and (3) full-time jobs. Bridging the €6.5 Trillion Water Infrastructure Gap: A Playbook 9