Sustainable finance
Water Bond
Definition
A water bond is a debt instrument raising capital exclusively or primarily for water-related investments, including drinking-water systems, wastewater treatment, irrigation efficiency, watershed restoration and climate-resilient water infrastructure. It is typically issued as a green or sustainability bond under ICMA-aligned frameworks.
References
This reference provides supporting context for how “Water Bond” is defined and used.
Source imported for editorial provenance.
Overview
How it is used
Utilities, municipalities, development banks and corporates issue water bonds; investors apply use-of-proceeds verification and impact reporting; frameworks such as the Climate Bonds Water Criteria provide sector eligibility screens.
Why it matters
Water infrastructure faces a large global financing gap. Water bonds channel capital market funding toward SDG 6 outcomes with defined accountability for proceeds.