Retno Marsudi: Water Sector Investment Crucial to Support Development

Without adequate funding, targets for access to water and sanitation will be difficult to achieve

Jakarta (ANTARA) – The UN Secretary-General’s Special Envoy for Water Issues, Retno Marsudi, has affirmed that investment in the water sector is a crucial element to support sustainable development, given the growing global funding needs and the resulting economic impact.

At the “Water Town Hall Meeting” in Jakarta on Tuesday, Retno said that global funding needs for the water and sanitation sector are estimated to reach around US$600 billion per year, while the funding gap to achieve Sustainable Development Goal (SDG) number six remains in the range of US$131–140 billion per year.

“The funding needs for the water and sanitation sector are very large. This is a shared challenge, because without adequate funding, the targets for access to water and sanitation will be difficult to achieve,” said Retno.

She emphasised that investment in the water sector should not be seen merely as a cost, but rather as a development investment that provides economic, social and public health benefits.

Retno cited a World Bank study which shows that every US$1 of investment in the water sector can generate economic returns of around US$6.8.

“This shows that water investment has a high return, both in the form of increased productivity, reduced healthcare costs, and social stability,” she said.

Retno also referred to an analysis by the World Resources Institute (WRI) which estimates that providing access to water for the entire world population requires an allocation of around 1 per cent of global Gross Domestic Product (GDP), or approximately US$0.29 per person per day.

According to Retno, the challenge of financing the water sector is becoming increasingly complex because water plays a connecting role across sectors, from agriculture, energy, and health to industry.

Globally, the agricultural sector accounts for about 72 per cent of freshwater use, so the management and financing of water has a direct impact on food security and the economy.

“Water is an enabler for many sectors. Therefore, the approach to financing the water sector must also be cross-sectoral and collaborative,” she said.

She believes that forums such as the “Water Town Hall Meeting” are important to encourage dialogue between governments, businesses, financial institutions, academics, and international partners in strengthening sustainable and equitable water financing schemes.