BEIJING, April 21 (Xinhua) -- The Asian Infrastructure Investment Bank (AIIB) has released a new research report, which urges greater investment in protecting the global water cycle after examining how the hydrological cycle is being destabilized by climate change.
Titled "Where the Water Flows," the 2026 Asian Infrastructure Finance report argues that the water cycle itself functions as infrastructure, storing, renewing and moving water across borders and economies.
"But a lack of investment and governance is failing to protect its integrity," the report said, urging efforts to increase funding, reform governance and leverage technology.
It examined the water financing gap, citing estimates that water-related projects commanded about 10 percent of total development finance in 2020, down from roughly 30 percent in 2000.
Multilateral development banks can play critical roles in strengthening the water cycle, from underpinning the natural infrastructure of the hydrological cycle to mobilizing private capital for natural and hybrid infrastructure solutions, the report noted.
AIIB has urged investment both in natural infrastructure that regulates water flows and maintains quality, and in engineered systems that manage storage, supply and protection, according to the report.
By aligning these approaches, there is an opportunity to shift from a growing global water crisis toward a more resilient and investable future, transforming water from a source of systemic risk into a foundation for sustainable development, and from water bankruptcy into water bankability, the report noted.
The AIIB, which began operations in 2016, is a multilateral development bank dedicated to financing "infrastructure for tomorrow."
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