ADB Warns Water Security Gains in Asia-Pacific at Risk Amid Climate Pressures and Major Financing Gap
More than 60% of the population in Asia and the Pacific—approximately 2.7 billion people—has moved out of extreme water insecurity over the past twelve years, but these hard-won gains face mounting risks from accelerating environmental degradation, intensifying climate impacts, and a significant financing shortfall. These findings were presented in the Asian Development Bank’s (ADB) Asian Water Development Outlook (AWDO) 2025.
According to the report, progress since 2013 has been driven by renewed political commitment, targeted infrastructure investments, and governance reforms across the region. However, rapid deterioration of wetlands, rivers, aquifers, and forests—combined with rising sea levels and an increase in extreme weather events—poses a substantial threat. The region accounts for 41% of global flood occurrences, making climate resilience a critical concern.
AWDO 2025 estimates that meeting the region’s water, sanitation, and hygiene (WASH) needs will require approximately $4 trillion by 2040, or $250 billion annually.
ADB warns, however, that sustaining progress will depend on protecting natural systems through river-health monitoring, pollution control, and watershed protection; enhancing governance with a shift toward preventive planning; and empowering subnational authorities. The report also stresses the importance of inclusive decision-making that involves women and youth.
Current WASH-related investment covers less than 40% of annual needs, leaving a financing gap exceeding $150 billion per year. The bank notes that closing this gap will require more efficient public spending, blended finance solutions, and regulatory and financial reforms capable of attracting private capital.
The 2025 AWDO was developed in partnership with international organizations and supported by contributions from Japan, the Netherlands, and the United Kingdom. Founded in 1966 and comprising 69 members, ADB remains a key multilateral institution promoting inclusive, resilient, and sustainable development across Asia and the Pacific.
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