Water Futures Mobilizing Multi Stakeholder Action for Resilience 2025

Where we want to get Societies, companies and global leaders will recognize the value of the water cycle, so it is reflected in policy-making, water strategies and investment decisions. Water valuation involves recognizing and accounting for the numerous benefits that well-functioning water cycles provide across economic, social and ecological systems, including in adapting to and mitigating the impacts of climate change (e.g. managing floods, recharging aquifers, resisting droughts). Holistic water valuation, considering its value, cost and price, plays a key role in channelling decisions and building the business case for critical developments around water circularity as well as energy and data infrastructure with low water intensity.60 In this context: –The cost of water must be clear and account for the full financial costs associated with its sustainable supply and use, as well as all long-term impacts from water use on the environment, society and future generations. –The price of water must reflect its cost and the value of the full hydrological cycle, efficiently representing demand and supply interactions as well as leading to a just and efficient allocation, while allowing for the full cost recovery of water supply and water conservation. Appropriate water valuation and water pricing mechanisms are key stepping stones towards the creation of water markets to support the resilience of water systems (Figure 7), as acknowledged by the recent work of the GCEW.61 These mechanisms engage stakeholders, both public and private, in a dialogue; collaboration is needed to design efficient markets, while preparing them for the implications of such markets being established for businesses, society and the environment. Holistic water valuation Appropriate water pricing mechanisms are key stepping stones towards the creation of water markets to support the resilience of water systems. Pathway 1 Value Cost Price Value: Total benefit derived from water, reflecting how water is important to and used by all humans and the environmentPrice: Amount paid for a given quantity, accounting for full cost recovery, efficiency, equity & justice and water conservationCost: The total costs associated with providing and using water, accounting for all inputs and externalitiesWater valuation elements FIGURE 7 Water Futures: Mobilizing Multi-Stakeholder Action for Resilience 17