This briefing discusses the emerging challenges and opportunities related to water scarcity and infrastructure adaptation due to climate change. Water-related disasters, including floods, droughts and wildfires, now account for over 90% of natural disasters. These challenges present investment opportunities, such as flood protection measures that can increase property values and attract new investments in redeveloped areas. Water demand is projected to exceed sustainable supply by 40% by 2030, highlighting the urgent need for innovation and investment in water management technologies. Developing regions, especially small island developing states (SIDS), are particularly vulnerable to water and climate challenges due to their remote locations and limited financing. This article emphasises the role of scientific, engineering and technological innovations in addressing these issues. It stresses the importance of bridging the divide between developed and developing regions and engaging the private sector in sustainable investments. Impact investors are crucial in turning water-related challenges into financial opportunities, yet the water sector remains underfunded compared with other
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