ADB, Japan Launch $10 Million Water Security Fund As Climate Risks Intensify Across Asia

COLOMBO (News 1st); The Asian Development Bank (ADB) and the Government of Japan have established a new fund aimed at strengthening water security and protecting communities across Asia and the Pacific from worsening floods, droughts and other water-related shocks, with Japan making an initial contribution of $10 million.

The initiative is expected to benefit developing countries across the region, including Sri Lanka, where ADB has already supported major water sector reforms as part of its broader commitment to strengthening resilience and sustainable development.

The newly established Water Initiative for Security, Efficiency and Resilience (WISER) Fund will help ADB's developing member countries improve water systems, reduce disaster risks, enhance water-use efficiency and deploy innovative digital solutions to address growing water challenges.

ADB President Masato Kanda highlighted the critical role of water in sustaining livelihoods, driving economic growth and ensuring long-term resilience.

“There is nothing more basic to life, or more decisive for development, than water,” Kanda said.

“When water systems fail, crops dry out, businesses slow, children miss school, and families become more vulnerable. When water is managed well, communities thrive, investment follows, and economies grow. Water is also a clean, reliable source of hydropower, and in today’s energy markets that matters more than ever. Asia and the Pacific has shown that progress is possible. Now we must move faster, invest smarter, and make water security the foundation of a more resilient future.”

The WISER Fund has been designed to support governments across Asia and the Pacific in strengthening water infrastructure, improving governance, boosting disaster preparedness and accelerating the adoption of modern technologies to manage increasingly complex water-related risks.

Japan’s Minister of Finance Satsuki Katayama said investment in the water sector remains essential to improving people's lives and supporting sustainable growth throughout the region.

“Investment in the water sector is indispensable to the sustainable development of the region and to improving people’s lives. Japan highly values the role ADB has played in addressing development challenges, and, with strong expectations for ADB’s further actions, has decided to contribute $10 million to the WISER Fund,” she said.

Katayama said Japan would also share its extensive experience in reducing water leakage, operating water supply and sewerage systems efficiently, improving sanitation and strengthening responses to water-related disasters.

“Japan will share this knowledge and expertise with the people of the region through ADB. We hope that the establishment of this fund will build additional momentum for cooperation toward the 2027 ADB Annual Meeting in Aichi-Nagoya, and lead to stronger collaboration between ADB and Japan.”

The announcement comes as Asia and the Pacific continue to face some of the world's most severe water-related challenges. More than four out of every ten flood events globally occur in Asia, while around 220 million people in the region still lack access to basic water supplies and approximately 520 million remain without basic sanitation services.

According to ADB’s latest Asian Water Development Outlook, around 2.7 billion people have been lifted out of extreme water insecurity since 2013. However, the bank warned that these gains remain vulnerable to environmental degradation, increasing water-related hazards and significant shortfalls in infrastructure investment.

The WISER Fund will draw on Japan's expertise in water-related disaster risk management, resilient and efficient water infrastructure, digital innovation and capacity development. It will support project preparation, policy reforms, technical training, knowledge sharing and stronger water governance throughout the region.

Between 2021 and 2025, ADB committed $12.7 billion to the water sector, benefiting approximately 63 million people. Its projects included support for water sector reforms in Sri Lanka, investments in the Philippines' water services sector, the Glaciers to Farms initiative across Central Asia, the South Caucasus and Pakistan, as well as wastewater treatment expansion in Fiji aimed at protecting marine ecosystems and strengthening climate resilience.

Looking ahead, ADB aims to reach 100 million people between 2026 and 2030 with improved access to safe water, sanitation, irrigation and climate resilience measures through its Water Forward initiative, a global programme focused on advancing water security and sustainable development.

Founded in 1966, ADB is one of the world's leading multilateral development banks, supporting inclusive, sustainable and resilient growth across Asia and the Pacific through strategic partnerships, innovative financing and infrastructure development. The institution is owned by 69 members, including 50 from the region.