Asia-Pacific lifts 2.7bn people from water insecurity, but ecosystem decline threatens gains: ADB

ISLAMABAD, Dec 8 (APP): More than 60% of the population in Asia and the Pacific, approximately 2.7 billion people, has been lifted out of extreme water insecurity over the past 12 years, but these hard-won gains are threatened by accelerating environmental decline and a major financing gap, the Asian Development Bank (ADB) said in its latest report.
The Asian Water Development Outlook (AWDO) 2025, published on Monday, found that renewed political commitment, targeted investments and governance reforms since 2013 had driven this progress.
But ecosystem decline, climate risks, and funding shortfalls for water investments threatened to plunge billions back into water insecurity. Wetlands, rivers, aquifers, and forests that sustain long-term water security are deteriorating fast.
Extreme weather events such as storm surges, rising sea levels, and saltwater intrusion threaten a region which already accounts for 41% of the world’s floods. In recent weeks, parts of Southeast and South Asia have been hit by devastating floods.
The AWDO estimated that $4 trillion through 2040, or $250 billion a year, was needed to meet the region’s water, sanitation, and hygiene (WASH) needs alone.
“Asia’s water story is a tale of two realities, with monumental achievements on water security coupled with rising risks that could undermine this progress,” ADB Senior Director for Water and Urban Development Norio Saito said.
“Without water security, there is no development. This report shows we need to act urgently to restore ecosystem health, strengthen resilience, improve water governance, and deploy innovative finance to deliver long-term water security, especially for the neediest communities.”
The AWDO assessed water security through five dimensions: access to clean water and sanitation for people living in villages and cities; the availability of water for key economic sectors such as agriculture; the state of rivers and other natural ecosystems; and protection measures against droughts, floods, and other water-related disasters.
The region’s steady improvement over the past 12 years is starkly demonstrated in rural India, where 840 million people now have better WASH services, due chiefly to government programs.
In the People’s Republic of China, government investments in flood control, rainfall radar systems, and emergency response have significantly enhanced resilience to water-related disasters.
Notable advances have also been made in Cambodia and the Lao People’s Democratic Republic, which have significantly reduced exposure to unsafe drinking water.
In Tajikistan, projects supported by initiatives like the United Nations’ Early Warnings for All have reduced drought exposure and strengthened national flood and storm management systems.
The AWDO noted that progress could be sustained if nature is protected and integrated into water systems through national river health monitoring, stronger pollution controls, and better watershed protection.
Stronger governance systems that prioritize prevention would improve climate resilience, and water systems would be more effective if sub-national bodies are given the resources and authority to manage them. Efforts must be inclusive, engaging women and young people, if investments are to succeed.
The report found that current spending on WASH infrastructure covers less than 40% of the estimated $250 billion needed every year, leaving an annual shortfall of more than $150 billion. Closing the gap requires deploying finances in smarter ways, including through blended finance that pools public and private resources to reduce project risk and mobilize private capital. Improving the efficiency and financial sustainability of the water sector can also attract private investment.
This year’s AWDO was produced in partnership with the University of Oxford, the International Water Management Institute, the University of Queensland, the International Center for Water Hazards and Risk Management, the Global Water Partnership, the International WaterCentre, Griffith University, and the IHE Delft Institute for Water Education.