Water : investing in natural capital

This chapter highlights the importance of providing all households with sufficient and affordable access to clean water supplies as well as adequate sanitation. It makes a case for early investment in water management and infrastructure and provides guidance on the suite of governance arrangements and policy reforms. The scope of this chapter is restricted to freshwater ecosystems, the water supply and sanitation sectors and the government and market processes that influence how and where this water is used. The perspective offered in this chapter is one that looks forward 20 years to 2030 and, where possible, to 2050. The chapter identifies the contribution that water can play in assisting a transition to a green economy. It presents a vision of the role that water ecosystems can play in the transition to a green economy and provides an overview of the world’s water resources and the services offered by the water supply and sanitation sector. It highlights some of the more unique characteristics of water and identifies challenges and opportunities to make better use of water and water dependent ecosystems. Building on this knowledge base, the benefits of investing in the water supply and sanitation sector as a means to assist with a transition to a green economy are quantified. The chapter closes by identifying institutional reforms, which, if implemented, would increase the returns from a commitment to a transition to a green economy.