Estimated capital utilized in water security, 2024-2034 FIGURE 2 2024 203478%45% 22%55% Private sector Public sector~$4 trillion~$13 trillion CAGR +13% p.a 7% 24%3x Increase in capital deployed for water security by 2034 ~70% of the increase is expected to come from private capital over the next 10 years Note: CAGR = Compound annual growth rate. Source: Global Water Intelligence (GWI) and XPV Water Partners.44 Private sector investment opportunities include: asset ownership (e.g. regulated private utilities);45 agricultural water (e.g. irrigation);46 solutions and technology (e.g. water-related businesses);47 corporate water (e.g. equity investments);48 and impact financing (e.g. firms or funds unlocking the social value of water).49 Digital technologies hold much of the market potential for water Achieving a water-resilient future will require not only transforming existing water systems, but also harnessing the power of digital technologies in water management. The market for digital solutions is projected to increase by 35%, from around $37 billion in 2023 to $50 billion by 2028.50 Technologies are expected to play a pivotal role in enhancing water treatment processes, and optimizing the efficiency of water networks is expected to account for more than half of projected market growth.51 These solutions will be essential to meet sustainability needs, as they help address water availability (e.g. technologies focused on conservation, desalination and water reuse), process efficiencies (e.g. improving productivity and lowering energy and chemicals demand) and water quality (e.g. measuring and maintaining high water quality, prevention of contamination at source).52 Examples include the use of fibre-optic leak detection technologies to improve efficiencies, the use of artificial intelligence (AI) such as artificial neural networks to transform wastewater treatment by predicting water quality, optimizing processes and enhancing pollutant removal, or the use of internet of things-based irrigation systems to monitor soil moisture, water salinity and turbidity, improve water and nutrient efficiency, and help water users (such as farmers) conserve water and increase crop productivity, especially in resource-limited areas. The growing market for digital solutions is also expected to affect sludge management (CAGR of 8%), followed by water resources (6%) and customer services (5%). Scaling-up these technologies and capturing market opportunities will require fit-for-purpose finance and a conducive policy environment that promotes innovation. Through these, solutions that tackle a number of obstacles to resilience (e.g. high CapEx cost of desalination, leakages, lack of data) can be deployed. Total capital deployed for water security is projected to increase threefold and exceed $13 trillion in the next decade. Water Futures: Mobilizing Multi-Stakeholder Action for Resilience 10

Water Futures Mobilizing Multi Stakeholder Action for Resilience 2025