Arman Ahunbaev, Head of the Eurasian Development Bank’s Center for Infrastructure and Industrial Research, presented critical financial solutions for addressing Central Asia’s water and sanitation infrastructure challenges at the Eighth CAREC Think Tank Development Forum. During the “Fixing Climate Finance” session, Ahunbaev outlined EDB’s recent study, which highlighted a severe shortfall in investment needed to ensure safe drinking water for nearly 10 million people in the region.
The study revealed that an additional $2 billion in annual funding is required between 2025 and 2030 to close the gap in Central Asia’s water and sanitation sector. To address this challenge, Ahunbaev proposed three key solutions:
Attracting Additional Financial Resources: Leveraging international organizations and multilateral development banks through pooled funding mechanisms.
Encouraging Private Investment: Fostering private sector participation while maintaining a balanced role for state involvement.
Enhancing Tariff Systems: Adjusting water tariffs to ensure the financial sustainability of the sector.
This presentation was part of a broader discussion on the second day of the CAREC Institute Forum, which centered on the intersection of climate finance, institutional growth, and the financial sustainability of think tanks. The forum brought together experts, policymakers, and academics from across the CAREC region and beyond.
During the “Fixing Climate Finance” session, speakers emphasized the critical need for substantial and sustained investments to support effective climate action. Discussions focused on creating a policy environment conducive to private sector engagement in climate initiatives, with insights shared by representatives from the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), Asian Development Bank (ADB), and Impact Hub Asia-Pacific.
The session also addressed innovative financing solutions for Central Asia’s pressing water and sanitation infrastructure needs, as well as for startups and green technologies in the region. The forum concluded with a commitment to continued collaboration among think tanks, academic institutions, and stakeholders in addressing climate change and other regional challenges.
