ASTANA – More than 60% of Asia and the Pacific’s population – around 2.7 billion people – has been lifted from extreme water insecurity over the past 12 years, but these gains are threatened by accelerating environmental decline and a major financing gap, according to a new Asian Development Bank (ADB) report.
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The Asian Water Development Outlook (AWDO) 2025, published on Dec. 8, finds that renewed political commitment, targeted investments, and governance reforms since 2013 have driven this progress. However, ecosystem decline, climate risks, and funding shortfalls threaten to plunge billions back into water insecurity. Wetlands, rivers, aquifers, and forests are deteriorating fast, while extreme weather events and rising sea levels threaten a region that accounts for 41% of the world’s floods.
The AWDO estimates that $4 trillion through 2040 – or $250 billion a year – is needed to meet the region’s WASH needs alone.
“Asia’s water story is a tale of two realities… Without water security, there is no development,” said ADB Senior Director Norio Saito, calling for urgent action to restore ecosystem health, strengthen resilience, improve water governance, and deploy innovative finance.
Progress is evident in rural India, where 840 million people now have better WASH (Water, Access, Sanitation, and Hygiene) services; in China, where investments in flood control and emergency response have enhanced resilience; and in Cambodia, the Lao People’s Democratic Republic, and Tajikistan, which have reduced exposure to unsafe drinking water and water-related disasters.
The AWDO notes that progress can be sustained if nature is protected through river health monitoring, pollution controls, and watershed protection; if governance systems prioritize prevention; and if subnational bodies are empowered. Efforts must be inclusive, engaging women and young people.
Current spending on WASH infrastructure covers less than 40% of the $250 billion needed annually, leaving a shortfall of more than $150 billion. Closing the gap requires smarter financing, including blended finance and improvements in efficiency and financial sustainability to attract private investment.
This year’s AWDO was produced with international partners and supported by funds from Japan, the Netherlands, and the United Kingdom. ADB, founded in 1966 and owned by 69 members, is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific.
