Introduction The water crisis: An escalating global challenge The world is facing an intensifying water crisis. Global freshwater demand has more than doubled since 1960 and continues to rise by about 1% each year.1 Today, an estimated 3.6 billion people – nearly half the world’s population – regularly face water shortages for at least one month per year, a number projected to surpass 5 billion by mid-century.2 This pressure is unevenly distributed. In regions such as the Middle East, North Africa and South Asia, water withdrawals regularly exceed 80% of available resources.3 Yet water scarcity is no longer confined to the Global South; parts of Europe and North America – including Spain, Italy, the western United States and Mexico – are nearing unsustainable use levels.4 The economic and climate risks are equally stark. By 2050, nearly 31% of global gross domestic product (GDP) – around $70 trillion – will be exposed to high water stress.5 In the hardest-hit regions, climate-driven scarcity could reduce GDP by up to 14%.6 Meanwhile, water-related disasters have increased fivefold since 1970, accounting for 70% of all natural disaster deaths.7These escalating challenges underscore a growing imperative: technical fixes alone are no longer sufficient. What’s needed is a systemic understanding of the enabling environment for water innovation – a mix of policies, governance structures, financing models and partnerships that determine whether innovations can succeed. To respond effectively to the water crisis, cities and institutions require frameworks that move beyond isolated interventions and enable integrated, scalable solutions. Cities at the centre of the water crisis Urban areas are emerging as the front line of this crisis. By 2050, urban water demand is expected to increase by nearly 80%,8 as the global urban population is projected to rise to nearly 70%.9 Already, hundreds of millions live in cities where water demand routinely exceeds supply, a figure set to double in the coming decades.10 However, cities are more than focal points for risk – they are also platforms for innovation. The intersection of climate volatility, ageing infrastructure and governance fragmentation makes cities especially vulnerable, yet this very complexity creates spaces for transformation. With billions of people already facing water stress, the need to strengthen enabling environments for innovation has never been more urgent. Image credit: Wateroam Water-BOOST: Enabling Innovation for Future-Ready Cities 6

Water BOOST Enabling Innovation for Future Ready Cities 2025