Water scarcity is often misunderstood. The Earth isnāt running out of waterāitās running out of clean, accessible water. Only 3% of global water is freshwater, and less than 1% of that is usable. Thatās still enough to meet demand, but weāre failing to build the systems needed to treat, recycle, and distribute it efficiently.

Cities under pressure from outdated systems
Growing populations, urbanisation, and climate pressures are pushing clean water to crisis levels. Yet the core issue isnāt supplyāitās infrastructure. Cities like Cape Town, SĆ£o Paulo, and Mexico City have faced near-disaster. Ageing systems, underinvestment, and political inertia have left millions vulnerable. But as risk grows, so does investor interest.
Desalination: a costly, unsustainable fix
Desalination offers short-term relief in water-stressed countries like Israel and Saudi Arabia, covering more than half their needs. But itās energy-heavy and produces toxic brine, damaging marine life. Itās not scalable at the level we need.
Wastewater treatment: a scalable, sustainable answer
The more viable answer is wastewater treatment. Technology now enables high-efficiency recycling at city and industrial scale. It reduces pressure on freshwater reserves and creates a closed-loop system that works. AI-driven leak detection, digital metering, and smart networks are also improving how water is managed, cutting waste and increasing reliability.
From crisis to capital: the investment gap
Public-private partnerships are forming to close the gap, but investment needs remain massive. The UN estimates $735 billion is required by 2030 to meet global water access targets. That number isnāt just a costāitās an investment opportunity.
Clean water is the futureāand itās investable
As water security shifts from environmental concern to economic and geopolitical priority, capital is flowing toward scalable, sustainable solutions. Wastewater treatment is no longer a last resortāitās a strategic asset. Clean water isnāt just a resource. Itās an investable future.
Taken from a recent article published by ESG Investment Magazine, by Christopher Cembran, Fund Research Analyst at MainStreet Partners.