Bridging the €6.5 Trillion Water Infrastructure Gap: A Playbook

The report identifies a €6.5 trillion global water infrastructure financing gap, with total investment needs reaching €11.4 trillion by 2040. Closing this gap could generate €8.4 trillion in additional GDP and 206 million jobs. The document outlines four primary drivers of demand: equitable access, infrastructure resilience, circularity, and innovation. It proposes a framework of enablers, including Regulated Asset Base (RAB) models, blue bonds, and digital twins, to attract private capital and improve operational efficiency. The analysis emphasizes a shift from linear to circular water systems and provides 27 case studies from regions including Asia, Africa, and Europe to demonstrate scalable solutions.

• The total global investment required for water infrastructure by 2040 is €11.4 trillion, leaving a financing gap of approximately €6.5 trillion compared to current spending trajectories.
• Closing the water infrastructure gap is projected to have significant socio-economic benefits, including the generation of €8.4 trillion in gross value added (GVA) and the creation of over 206 million full-time jobs worldwide by 2040.
• Water infrastructure investments offer superior socio-economic returns compared to other sectors; the GDP multiplier for water is 1.2x, which is higher than energy (1.1x), transport (1.1x), and telecommunications (1.0x).
• Investment needs are distributed globally, with Asia requiring the largest share at €5.2 trillion (46% of the global total), followed by North America (€1.8 trillion) and Europe (€1.7 trillion).
• Global water distribution networks are highly inefficient, with approximately 30% of distributed water lost as non-revenue water (NRW) due to leaks, unauthorized use, and metering inaccuracies.
• The report identifies four structural drivers of investment demand: equitable access (€5.3 trillion), infrastructure resilience (€4.8 trillion), circularity (€1 trillion), and innovation (€0.3 trillion).
• Water reuse is currently underutilized, accounting for only 12% of global municipal freshwater withdrawals, despite a potential to reach 50% by 2040.
• Digital transformation in the water sector lags behind other utilities; for example, smart water meter penetration in Europe (17%) and North America (21%) is significantly lower than smart electricity meter penetration in the same regions (73% and 82%).
• Regulated Asset Base (RAB) models are recommended for capital-intensive projects with long lead times as they allow revenue recovery during the construction phase, attracting long-term institutional investors.
• Advanced treatment technologies are needed to address emerging pollutants, such as PFAS, which contaminate at least one-third of global water bodies and resist conventional treatment.

APA

World Economic Forum (2025). Bridging the €6.5 Trillion Water Infrastructure Gap: A Playbook. https://reports.weforum.org/docs/WEF_Bridging_the_6.5_Trillion_Water_Infrastructure_Gap_A_Playbook_2025.pdf

Chicago

World Economic Forum. Bridging the €6.5 Trillion Water Infrastructure Gap: A Playbook. 2025. https://reports.weforum.org/docs/WEF_Bridging_the_6.5_Trillion_Water_Infrastructure_Gap_A_Playbook_2025.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Bridging the €6.5 Trillion Water Infrastructure Gap: A Playbook |date=December 2025 |url=https://reports.weforum.org/docs/WEF_Bridging_the_6.5_Trillion_Water_Infrastructure_Gap_A_Playbook_2025.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2025bridging, author = {{World Economic Forum}}, title = {{Bridging the €6.5 Trillion Water Infrastructure Gap: A Playbook}}, institution = {World Economic Forum}, year = {2025}, month = dec, url = {https://reports.weforum.org/docs/WEF_Bridging_the_6.5_Trillion_Water_Infrastructure_Gap_A_Playbook_2025.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }