Water Infrastructure

Aligning water infrastructure with climate goals

Water infrastructure is essential for communities and economies worldwide. In developed nations, it accounts for a significant portion of capital assets, while in developing economies, investments in water infrastructure are expanding rapidly. As climate change disrupts water supply and distribution, there is an urgent need for substantial infrastructure to ensure clean, secure, and resilient water access for all. 

The Water Infrastructure Criteria set the standards for water-related assets and projects to qualify for Climate Bonds Certification. These Criteria enable investors to evaluate the environmental benefits of green bonds linked to water infrastructure. Bonds must also meet the Climate Bonds Standard’s reporting and transparency requirements 
 

Eligible Water Infrastructure assets

The Criteria cover a range of investments that strengthen climate resilience and enhance water security. Developed in three phases, they now address all aspects of water infrastructure: 

• Phase 1: Engineered infrastructure, such as pipelines, treatment plants, and reservoirs. 
• Phase 2: Nature-based and hybrid solutions, including wetlands, green infrastructure, and flood or drought resilience projects. 
• Phase 3: Desalination infrastructure, providing fresh water to regions experiencing severe water scarcity. 

These phases have been fully integrated into a single, comprehensive framework. 
 

Development of the Criteria

The Criteria were created by the Water Consortium, a collaboration among the Climate Bonds Initiative, Ceres, World Resources Institute (WRI), CDP, and the Alliance for Global Water Adaptation (AGWA), with support from the Stockholm International Water Institute (SIWI).  
 

The Consortium worked with

• A Technical Working Group (TWG). 
• An Industry Working Group (IWG) comprising investors, public utilities, NGOs, and international policy experts. 
• A Desalination TWG, which developed desalination-specific guidelines during Phase 3. 

By offering clear standards, the Water Infrastructure Criteria guides investments toward climate-resilient infrastructure and sustainable water solutions on a global scale.