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United Nations Educational, Scientific and Cultural Organization The United Nations World Water Development Report 2021 VALUING WATER United Nations World Water Educational, Scientific and Assessment Cultural Organization Programme The United Nations World Water Development Report 2021 VALUING WATER Published in 2021 by the United Nations Educational, Scientific and Cultural Organization, 7, place de Fontenoy, 75352 Paris 07 SP, France © UNESCO 2021 This report is published by UNESCO on behalf of UN-Water. The list of UN-Water Members and Partners can be found on the following website: www.unwater.org. ISBN 978-92-3-100434-6 This publication is available in Open Access under the Attribution-ShareAlike 3.0 IGO (CC-BY-SA 3.0 IGO) license (creativecommons.org/licenses/by-sa/3.0/igo/). By using the content of this publication, the users accept to be bound by the terms of use of the UNESCO Open Access Repository (www.unesco.org/open-access/terms-use- ccbysa-en). The present license applies exclusively to the text content of the publication. For the use of any material not clearly identified as belonging to UNESCO, prior permission shall be requested from the copyright owner. The designations employed and the presentation of material throughout this publication do not imply the expression of any opinion whatsoever on the part of UNESCO concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. Similarly, boundaries and names shown and the designation used on the maps do not imply official endorsement or acceptance by the United Nations. The ideas and opinions expressed in this publication are those of the authors; they are not necessarily those of UNESCO and do not commit the Organization. The contents were contributed by the UN-Water Members and Partners, and others on the title pages of the chapters therein. UNESCO and the UNESCO World Water Assessment Programme (WWAP) are not responsible for errors in the content provided or for discrepancies in data and content between contributed chapters. WWAP provided the opportunity for individuals to be listed as authors and contributors or to be acknowledged in this publication. WWAP is not responsible for any omissions in this regard. Section 8.2 by Rémy Kinna, Sonja Koeppel, Diane Guerrier and Chantal Demilecamps © 2020 United Nations. Contributions to Chapter 9 by Rémy Kinna © 2020 United Nations. Chapter 10 by John Russ © International Bank for Reconstruction and Development/The World Bank. Suggested citation: United Nations, The United Nations World Water Development Report 2021: Valuing Water. UNESCO, Paris. Cover artwork by Davide Bonazzi. Printed by UNESCO, Paris. Printed in France. This publication is printed on 100% recycled, chlorine-free paper. Foreword by Audrey Azoulay, Director-General of UNESCO ....................................... vi Foreword by Gilbert F. Houngbo, Chair of UN-Water and President of IFAD .............. vii Preface .......................................................................................................................... viii WWDR 2021 Team ........................................................................................................ x Acknowledgements ...................................................................................................... xi Executive summary ...................................................................................................... 1 Prologue The state of water resources .............................................................. 11 Water demand and use ...........................................................................................................12 Water availability .....................................................................................................................13 Water quality ...........................................................................................................................13 Extreme events ........................................................................................................................15 Water, sanitation and hygiene (WASH) ..................................................................................15 Water-related ecosystem services .........................................................................................16 Chapter 1 Valuing water: Perspectives, challenges and opportunities ............... 17 1.1 Introduction .......................................................................................................................18 1.2 Why value water? ..............................................................................................................19 1.3 The values of water to society .........................................................................................21 1.4 Methods for calculating the values of water ..................................................................25 1.5 Accounting for subsidies and other incentives in valuations ........................................25 1.6 Reconciling different values and perspectives ...............................................................25 1.7 Principles for valuing water for sustainable development ............................................27 1.8 The approach of the World Water Development Report .................................................28 Chapter 2 Economic valuation of the source ..................................................... 29 2.1 Introduction .......................................................................................................................30 2.2 The environmental dimensions of the resource – A key consideration .......................30 2.3 Valuing the environment ..................................................................................................31 2.4 Methods used to calculate values ...................................................................................33 2.5 Approaches that support valuing the environment–water relationship .......................38 2.6 Alternative sources: Water reuse, desalination and supply augmentation ...................40 2.7 Constraints and challenges .............................................................................................42 Chapter 3 Valuation of hydraulic infrastructure ................................................. 43 3.1 Introduction .......................................................................................................................44 3.2 Values of global benefits of water infrastructure ...........................................................45 3.3 Methods and approaches to the valuation of hydraulic infrastructure .........................45 3.4 Valuing risk and resilience ...............................................................................................51 3.5 Ways forward ....................................................................................................................54 Contents i Chapter 4 Valuing water supply, sanitation and hygiene (WASH) services in human settlements ........................................................................... 55 4.1 Introduction .......................................................................................................................56 4.2 The value of WASH services ............................................................................................56 4.3 Values and supplemental benefits of access to WASH services ..................................58 4.4 Accessing WASH: Subsidies and affordability ...............................................................64 Chapter 5 Food and agriculture ......................................................................... 67 5.1 Introduction .......................................................................................................................68 5.2 The multiple benefits of water for food production .......................................................68 5.3 Impacts and costs of inefficient use of water for food production ..............................71 5.4 Scalable solutions for valuing water for food production ..............................................72 Chapter 6 Energy, industry and business ........................................................... 79 6.1 Context ..............................................................................................................................80 6.2 Water use ..........................................................................................................................80 6.3 The case for water valuation in the EIB sector ...............................................................81 6.4 Approaches to water valuation ........................................................................................82 6.5 The monetization of water ...............................................................................................85 6.6 Accounting for the environment ......................................................................................91 6.7 Stakeholders, corporate social responsibility (CSR) and stewardship .........................92 6.8 Future value for EIB – Succeeding and surviving ...........................................................93 Chapter 7 Culture and the values of water ......................................................... 97 7.1 Introduction .......................................................................................................................98
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