What is a glass of water worth? How financing innovation can boost global water resilience

A single glass of water holds immense, often overlooked value. It represents health, preventing disease and sustaining life. It also represents productivity, as hydrated, healthy people work at their best. And it represents economic growth – every industry, from agriculture to energy, depends on reliable water supplies.

As climate volatility intensifies and freshwater scarcity grows, revaluing and re-financing water is no longer optional. It is a leadership imperative across every sector.

The 2026 UN Water Conference, co-hosted by the Republic of Senegal and the United Arab Emirates, will mark a significant global milestone in accelerating results through collective action.

With just five years left to achieve the Sustainable Development Goals, the conference will highlight the pivotal role of innovation and finance in transforming water systems and advancing SDG 6: ensure availability and sustainable management of water and sanitation for all.

Water’s worth extends far beyond market prices, encompassing direct uses such as drinking, irrigation and industrial; indirect benefits such as purification, flood control and carbon storage; and non-use values tied to cultural heritage and future security.

In 2021, the total use value of freshwater – covering both direct and indirect uses – was estimated at $58 trillion or 60% of global gross domestic product (GDP). Indirect values, such as purification, flood mitigation and carbon sequestration, are seven times greater than direct uses, yet they remain largely absent from economic models.

Chronic underinvestment in water systems is evident in cities where about 40% of treated water is lost to leaks. Improving efficiency across all sectors can unlock significant economic and social value.

In agriculture, which accounts for roughly 70% of global freshwater use, improved irrigation and management practices can enhance livelihoods while safeguarding food and water security.

Expanding equitable access remains essential: women and girls spend a collective 200 million hours each day collecting water and households in informal settlements pay up to 10 times more per litre than those with piped connections.

Capturing water’s full value significantly strengthens the case for sustained wide-scale investment. Water financing is not just about building infrastructure – it’s about investing in resilience, equity and long-term prosperity.

Yet, current financing models are fragmented and insufficient. According to data from the Organisation for Economic Co-operation and Development and the United Nations, only 3.1% of total official development assistance worldwide, or approximately $8.5 billion, was directed toward water supply and sanitation in 2022.

Private sector participation remains modest, estimated at less than 2% of total investment in the water sector.

Recognizing water’s full value is the first step to overcoming investment barriers. When its economic, social and environmental importance is fully understood, financing systems must evolve to reflect that multidimensional worth.

Embedding this principle in investment strategies means mobilizing blended and flexible capital, integrating with climate funds, aligning incentives, building institutional capacity and ensuring equity.

If recognizing water’s value is the first step, the next is measuring and applying it in practice.

Over time, diverse approaches have emerged to make water’s worth visible in decision-making – frameworks that quantify hidden benefits, tools that guide trade-offs and models that foster collective stewardship. Each offers a distinct lens and together they help translate principle into action.

The Global Common Good Framework from the Global Commission on the Economics of Water (GCEW) takes a practical stance: water is not just a local utility but part of a global commons.

Treating the hydrological cycle as shared recognizes that upstream actions affect downstream communities and even global climate systems.

By framing water as a common good, the GCEW shifts the focus from fragmented local management to collective responsibility for water security and resilience.

The TEV framework captures the full spectrum of water benefits, including direct use, non-use and broader societal values such as flood protection, carbon storage and cultural significance.

A TEV assessment of Beyşehir Lake in Turkey estimated its value at TRY 271 million, or 13% of the local sub-catchment’s GDP. The study found that water allocated to municipal uses, such as drinking and sanitation, delivered over nine times more value per cubic metre than irrigation, highlighting the cost of inefficient allocation.

The Water Value Framework, developed by BCG and Oceanwell, helps leaders move beyond abstract numbers and make informed trade-offs. It considers “total value,” capturing water’s full societal role and “marginal value,” showing the additional benefit of each unit used.

For example, in Israel, the marginal value of desalinated water is estimated at around $4 per cubic metre, reflecting the economic losses avoided by preventing shortages. This approach clarifies allocation by highlighting where each drop delivers the greatest impact.

At the 2025 World Economic Forum in Davos, Switzerland, The Economist, supported by the Grundfos Foundation, launched the Water Impact Assessment Tool, which quantifies the societal benefits of investing in safe water access and translates abstract values into actionable metrics.

By modelling economic, health and productivity gains, it helps governments, investors and other stakeholders understand the returns on water investments in clear, data-driven terms. The tool bridges valuation and financing by enabling:

By quantifying water’s societal benefits, the Water Impact Assessment Tool helps guide governance and investment decisions aligned with sustainable water management.

There are also several other initiatives helping to operationalize water valuation:

These tools go beyond technical solutions – they enable collaboration, transparency and accountability in managing the value of water.

As the 2026 UN Water Conference approaches, innovation and finance must take centre stage. Governments, financial institutions and private sector actors need a shared understanding and practical, ambitious roadmaps.

Recognizing water’s full value enables collaboration – valuing water is the foundation of water resilience; investment in water is the key to unlocking that value.