MDBs Pledge $50B Water Security Push at COP16 in Riyadh

Multilateral development banks (MDBs) have reaffirmed water security as a central pillar of global climate action, pledging to expand financing and technical assistance for climate-resilient water systems during a high-level meeting held on the sidelines of the 16th session of the Conference of the Parties (COP16) to the United Nations Convention to Combat Desertification (UNCCD) in Riyadh. The meeting, announced through official Saudi channels including the Saudi Press Agency (SPA), brought together nine of the world’s leading development finance institutions, which collectively underscored that water security must be treated as an urgent and integral component of the international response to climate change. The Kingdom of Saudi Arabia hosted the COP16 conference at a pivotal moment for global environmental governance, and the MDBs’ statement added significant momentum to the discussions taking place in the Saudi capital.

The participating institutions included the World Bank Group, the Islamic Development Bank, the African Development Bank Group, the Asian Development Bank, the Asian Infrastructure Investment Bank, the European Bank for Reconstruction and Development, the European Investment Bank, the Inter-American Development Bank Group, and the New Development Bank. Their joint statement reflected a shared recognition that water scarcity, drought, and deteriorating water quality are among the most tangible and immediate consequences of climate change, affecting billions of people across both developing and developed regions. But why does water security deserve such prominence in the global climate conversation, and what does this collective commitment mean for the communities most at risk?

Context and Background

The MDBs’ statement builds on more than a decade of steadily expanding engagement in the global water sector. Over the past five years alone, these institutions have provided $50 billion in loans and technical assistance to water-related projects, directly benefiting more than 400 million people worldwide. That figure represents one of the largest coordinated financing efforts in the history of multilateral development cooperation, spanning drinking water supply, sanitation infrastructure, irrigation modernization, flood protection, and integrated water resource management across Africa, Asia, the Middle East, Latin America, and Europe. The scale of this investment underscores a growing consensus that water is not merely a sectoral concern but a cross-cutting enabler of health, food security, energy production, and economic stability.

The meeting in Riyadh followed the outcomes of the 28th Conference of the Parties (COP28) held in December 2023, where MDBs first committed to significantly scaling up support for climate-resilient water systems, particularly in water-scarce regions. That earlier pledge recognized that climate change is intensifying the hydrological cycle, producing more frequent and severe droughts in some areas and destructive flooding in others. For countries already facing acute water stress, these shifts threaten to reverse decades of development gains. Isn’t it remarkable that water, the most fundamental resource for human survival, had for so long remained on the periphery of global climate negotiations? The Riyadh meeting signaled a decisive shift toward placing water at the center of climate adaptation and resilience strategies.

The choice of Riyadh as the venue for COP16 was itself significant. The Kingdom of Saudi Arabia has made environmental sustainability and water resource management key priorities under Vision 2030, the national transformation strategy championed by Crown Prince Mohammed bin Salman. Saudi Arabia’s hosting of the conference demonstrated its commitment to convening global stakeholders around pressing environmental challenges and to contributing practical solutions through its own national programs, including the Saudi Green Initiative and the Middle East Green Initiative, both of which prioritize water conservation, reforestation, and desertification control.

Key Details of the MDB Commitment

In their statement, the MDBs pledged to expand financing for climate-resilient water systems using a diverse array of financial instruments. They highlighted the exploration of innovative financing mechanisms, including mobilizing private and philanthropic resources, leveraging market-based solutions, and maximizing the impact of climate finance. This approach reflects a broader trend in development finance toward blending public and private capital to achieve greater scale and sustainability. The institutions stressed the importance of prioritizing support for vulnerable populations, particularly those in regions facing acute water scarcity, where the consequences of inaction are most severe and immediate.

A central theme of the statement was the need for sustainable, high-quality water service providers equipped with technical and financial expertise, robust governance systems, and effective institutional and regulatory frameworks. The MDBs reaffirmed their commitment to supporting national and regional water sector reforms and investments aimed at improving service delivery, governance, and transparency. This emphasis on governance reflects a hard-earned lesson from decades of development work: infrastructure alone is insufficient without the institutional capacity to operate, maintain, and manage water systems effectively over the long term. How can countries build the governance frameworks needed to ensure that every dollar invested in water infrastructure delivers lasting benefits for citizens?

The MDBs committed to scaling up support for the water sector between 2025 and 2030 through increased financing and technical assistance, aligning their efforts with the Sustainable Development Goals (SDGs), particularly SDG 6 on clean water and sanitation. Key priorities outlined in the statement include accelerating universal access to safe drinking water and sanitation, expanding irrigation to bolster food security and livelihoods, enhancing flood management, and promoting sustainable water resource management. The institutions aim to deliver water security to hundreds of millions of people through ambitious programs grounded in deeper collaboration among MDBs and with global partners. These priorities are not abstract aspirations; they represent concrete operational targets that will shape project pipelines, lending portfolios, and technical assistance programs across dozens of countries in the coming years.

International and Regional Impact

The MDBs’ collective commitment carries profound implications for international development and climate diplomacy. Water scarcity is increasingly recognized as a driver of migration, conflict, and economic instability, particularly in the Middle East, North Africa, the Sahel, and parts of South Asia. By mobilizing significant financial resources and technical expertise, the MDBs are addressing not only the immediate symptoms of water stress but also the underlying structural factors that perpetuate vulnerability. The coordinated approach outlined in Riyadh signals that the international community is moving toward a more integrated model of development finance, one that recognizes the interconnections between water, food, energy, and climate systems.

For the Middle East and North Africa region, which is home to some of the world’s most water-scarce countries, the MDBs’ pledge is particularly consequential. Saudi Arabia has long been a leader in desalination technology and water management innovation, and its experience offers valuable lessons for other nations facing similar challenges. The Kingdom’s National Water Strategy 2030 aims to reduce demand, enhance supply efficiency, and promote sustainable consumption patterns. Regional cooperation, supported by MDB financing, could accelerate the adoption of best practices and technologies across the broader region. What role can regional powers like Saudi Arabia play in catalyzing water security solutions that benefit not only their own populations but also their neighbors and partners across the developing world?

Economic and Strategic Significance

The economic dimensions of water security are difficult to overstate. Water is essential to agriculture, which accounts for approximately 70 percent of global freshwater withdrawals; to energy production, which relies on water for cooling and hydropower generation; and to industry, where it serves as a critical input in manufacturing processes. When water systems fail, the economic consequences ripple across all sectors, undermining growth, destroying livelihoods, and straining public budgets. The MDBs’ commitment to expanding irrigation and promoting sustainable water resource management is therefore not only an environmental imperative but also an economic strategy aimed at safeguarding prosperity and stability.

The emphasis on innovative financing mechanisms reflects a recognition that traditional development aid alone cannot meet the scale of investment required. Estimates suggest that achieving universal access to safe water and sanitation will require hundreds of billions of dollars annually, far exceeding current levels of public spending. By mobilizing private capital, leveraging market-based solutions, and maximizing the impact of climate finance, the MDBs are seeking to close this gap. The involvement of the Islamic Development Bank, headquartered in Jeddah, Saudi Arabia, adds a particularly relevant dimension, given its mandate to support economic development and social progress in Muslim-majority countries, many of which face severe water constraints.

Vision 2030 Alignment

The MDBs’ statement resonates strongly with Saudi Arabia’s Vision 2030 objectives, which include environmental sustainability, economic diversification, and enhanced global engagement. Under Vision 2030, the Kingdom has launched ambitious initiatives to improve water efficiency, reduce consumption, and invest in cutting-edge technologies such as desalination powered by renewable energy. The Saudi Green Initiative aims to plant 10 billion trees and restore degraded land, while the Middle East Green Initiative extends these efforts across the region. Hosting COP16 and facilitating high-level dialogues such as the MDB meeting in Riyadh demonstrate Saudi Arabia’s growing role as a convenor and catalyst for global environmental action.

As the international community moves toward the 2025-2030 implementation period outlined by the MDBs, the partnership between multilateral institutions, national governments, and the private sector will be tested. Saudi Arabia’s leadership, both through its Vision 2030 programs and its diplomatic efforts, positions the Kingdom as a constructive force in this global endeavor. The commitment to deliver water security to hundreds of millions of people is ambitious, but it is grounded in a clear-eyed assessment of the challenges and a proven track record of coordinated action. With continued collaboration and sustained investment, the vision of a water-secure world is within reach, and Saudi Arabia will remain a vital partner in turning that vision into reality.

20 Questions

Q1. What is the main outcome of the MDB meeting held during COP16 in Riyadh?

A1. The MDBs reaffirmed their commitment to water security as a key component of climate action, pledging to expand financing and technical assistance for climate-resilient water systems between 2025 and 2030, benefiting hundreds of millions of people worldwide.

Q2. Which multilateral development banks participated in the meeting?

A2. Participants included the World Bank Group, Islamic Development Bank, African Development Bank Group, Asian Development Bank, Asian Infrastructure Investment Bank, European Bank for Reconstruction and Development, European Investment Bank, Inter-American Development Bank Group, and New Development Bank.

Q3. How much have MDBs invested in the water sector over the past five years?

A3. Over the past five years, MDBs have provided $50 billion in loans and technical assistance to the water sector, directly benefiting more than 400 million people worldwide through improved access to water and sanitation services.

Q4. What innovative financing mechanisms did the MDBs highlight?

A4. The MDBs highlighted mobilizing private and philanthropic resources, leveraging market-based solutions, and maximizing the impact of climate finance to expand financing for climate-resilient water systems in vulnerable regions.

Q5. Why is water security important in addressing climate change?

A5. Water security is critical because climate change intensifies droughts and floods, threatening drinking water supplies, agriculture, and economic stability. Ensuring resilient water systems helps communities adapt and protects development gains.

Q6. What did the MDBs pledge regarding support for vulnerable populations?

A6. The MDBs stressed prioritizing support for vulnerable populations, particularly those in regions facing acute water scarcity, ensuring that financing and technical assistance reach those most in need of climate-resilient water systems.

Q7. What governance improvements do the MDBs seek in the water sector?

A7. The MDBs aim to support sustainable, high-quality water service providers with technical and financial expertise, robust governance systems, and effective institutional and regulatory frameworks to improve service delivery and transparency.

Q8. How does the MDB commitment build on COP28 outcomes?

A8. Building on COP28 pledges from December 2023, the MDBs reiterated their commitment to expand access to climate-resilient water systems, particularly in water-scarce regions, and to scale up support from 2025 to 2030.

Q9. What are the key priorities outlined by the MDBs for the water sector?

A9. Key priorities include accelerating universal access to safe drinking water and sanitation, expanding irrigation for food security, enhancing flood management, and promoting sustainable water resource management through ambitious collaborative programs.

Q10. How does the MDB statement align with the Sustainable Development Goals?

A10. The MDBs’ commitment aligns with the Sustainable Development Goals, particularly SDG 6 on clean water and sanitation, by scaling up financing and technical assistance to deliver water security to hundreds of millions of people.

Q11. What role did Saudi Arabia play in hosting the COP16 and the MDB meeting?

A11. Saudi Arabia hosted COP16 to the UNCCD in Riyadh, providing a platform for global stakeholders to discuss environmental challenges. The MDB meeting on the sidelines highlighted the Kingdom’s role as a convenor of international climate action.

Q12. How does water security relate to Saudi Arabia’s Vision 2030?

A12. Water security is integral to Vision 2030, which emphasizes environmental sustainability, economic diversification, and global engagement. Saudi Arabia’s National Water Strategy 2030 aims to reduce demand and enhance supply efficiency.

Q13. What is the significance of the Islamic Development Bank’s involvement?

A13. The Islamic Development Bank, headquartered in Jeddah, supports economic development in Muslim-majority countries, many facing severe water constraints. Its involvement ensures that financing reaches regions with acute water scarcity.

Q14. How will the MDBs scale up support between 2025 and 2030?

A14. The MDBs will increase financing and technical assistance through diverse instruments, including private capital mobilization and climate finance, to deliver water security to hundreds of millions of people in water-scarce regions.

Q15. What economic benefits are expected from improved water security?

A15. Improved water security supports agriculture, energy production, and industry, safeguarding livelihoods and economic stability. It reduces the economic ripple effects of water system failures and enhances climate resilience.

Q16. How does the MDB commitment address flood management?

A16. The MDBs aim to enhance flood management as part of their priorities, recognizing that climate change increases flood risks. Investments in infrastructure and governance will help protect communities and reduce damage.

Q17. What is the expected impact on food security and livelihoods?

A17. By expanding irrigation and promoting sustainable water management, the MDBs aim to bolster food security and livelihoods, particularly in regions where agriculture depends on reliable water supplies for crop production and income.

Q18. How do MDBs plan to engage the private sector in water financing?

A18. MDBs plan to mobilize private and philanthropic resources and leverage market-based solutions, blending public and private capital to achieve greater scale and sustainability in water sector investments.

Q19. What lessons does Saudi Arabia’s water management offer to other nations?

A19. Saudi Arabia’s experience in desalination and water efficiency under Vision 2030 offers valuable lessons for other water-scarce nations, demonstrating how technology and policy can address acute water challenges.

Q20. What is the long-term vision for global water security according to the MDBs?

A20. The MDBs envision delivering water security to hundreds of millions through ambitious programs, deeper collaboration, and sustained investment, aligning with SDGs and climate resilience goals for a water-secure world.

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