he private sector, including Mexican companies, are leading the creation of innovative financial models to guarantee investments to tackle water scarcity, according to sector representatives at the United Nations Climate Change Conference (COP27).

Lorena Guille-Laris, director of Mexico’s FEMSA Foundation, highlighted the challenge that water represents for Latin America, with more than one third of the region’s population lacking access to drinking water and more than two thirds living in areas where systems are inadequately managed.

According to estimates from the Inter-American Development Bank (IDB), if investment in conventional solutions continues, the United Nations Sustainable Development Goals (SDGs) will not be achieved until 2075, which “is unacceptable.”

Guille-Laris explained that the FEMSA Foundation prioritizes three key elements in its water strategy, with the co-design and piloting of potentially scalable financial models; driving business models that are sustainable and have a relevant positive environmental and social impact; and promoting behavioral and cultural change.

In recent years, water has gained prominence in global conversations on the climate crisis due to reports that have revealed the impact of global warming in the form of floods and droughts around the world, including Mexico.