Managing water for green growth

The UN 2030 Sustainable Development Agenda recognises the critical contribution of water to sustainable development. However, investment in waster security falls short of global needs and the impacts on communities, economies and the environment are significant. The OECD Policy Perspectives on Water, Growth and Finance explains that this does not result from a shortage of finance, but from inadequate risk-return profiles of infrastructure projects in the water sector.

In 2017, the OECD established the Roundtable on Financing Water to facilitate dialogues between the water and finance communities on how to overcome the global challenges of financing investments that contribute to water security and sustainable growth. Specifically, the Roundtable: i) tracks water- related financing needs and capacities in different regions of the world; ii) develops policy recommendations to mobilise private finance (e.g. through blending development finance with domestic commercial finance); and iii) analyses how to ensure that available finance goes to projects which are not merely bankable but deliver tangible benefits in terms of water security and sustainable development.

The Roundtable embarked on a series of regional meetings (covering North and Latin America and Asia in 2019, other regions in 2020) for more tailored discussions on issues and opportunities.

Recognising that water crises are often primarily governance crises, the OECD Water Governance Initiative was set up as an international multi-stakeholder network where delegates from public, private and non- profit sectors share good water governance practices. It has led to the development of the OECD Principles on Water Governance in 2015, the OECD Water Governance Indicators in 2018 and the “How To Assess water Governance” guide in 2022.

The OECD supports ambitious water policy reforms in selected countries, on demand. These combine robust analyses of water economics and governance with insights from international practitioners, in the framework of national policy dialogues on water. Over the past decade, Water Policy Dialogues have been undertaken in Mexico, the Netherlands, Brazil, Korea, Argentina, Peru. They have helped to inform the water policy reform agenda.

The OECD also provides support to the transition economies of Eastern Europe, the Caucasus and Central Asia to improve their environmental and water policies, integrate environmental considerations into the processes of economic, social and political reform and gradually shift to a green growth and sustainable development model. As a key implementing partner of the European Union for Environment Water Resources and Environmental Data Programme (EU4Environment – Water and Data), OECD work on policy reforms in this region are aimed at the economic and financial dimensions of sustainable water resources management, the reform of water supply and sanitation systems, and enhanced transboundary co-operation in water basins.

Key Publications and websites

• Financing a Water Secure Future, OECD Studies on Water (2022)

• Reform of Water Supply and Wastewater Treatment in Lithuania, OECD Studies on Water (2022)

• Towards Sustainable Water Services in Estonia, OECD Studies on Water (2022)

• Managing and Financing Water for Growth in Thailand, OECD Studies on Water (2022)

• Financing a Water Secure Future, OECD Studies on Water (2022)

• Fostering Water Resilience in Brazil, OECD Studies on Water (2022)

• How To Assess water Governance, OECD Studies on Water (2022)

• Developing a Water Policy Outlook for Georgia, the Republic of Moldova and Ukraine, OECD Studies on Water (2021)

• Water Governance in Peru, OECD Studies on Water (2021)

• Water Governance in African Cities OECD Studies on Water (2021)

• Water Governance in Cape Town, South Africa OECD Studies on Water (2021)

• www.oecd.org/water

• www.oecd.org/environment/outreach/water-eecca/

Contact for more information

Xavier Leflaive

Environment Directorate

E-mail: Xavier.Leflaive@oecd.org

Matthew Griffiths

Environment Directorate

E-mail: Matthew.Griffiths@oecd.org

Oriana Romano

Centre for Entrepreneurship, SMEs, Regions and Cities

E-mail: Oriana.Romano@oecd.org