The Changing Wealth of Nations - Adding Water to the Changing Wealth of Nations

Investment Rating - The report does not explicitly provide an investment rating for the industry. Core Insights - The report emphasizes the importance of valuing water as a natural capital asset to enhance economic understanding and policy-making related to water resources [11][12][16]. - It identifies three approaches for estimating the value of water: asset-by-asset, use-by-use, and service-by-service, with the service-by-service approach being the most feasible at the required scale [11][12][16]. - The report highlights the need for improved data and methodologies to generate reliable estimates of water value, which is currently underrepresented in national wealth accounts [11][12][16]. Summary by Sections Introduction - Water consumption is increasing globally due to population growth and economic development, while availability is affected by climate change and declining quality [11]. - The report aims to assess the feasibility of valuing water in at least 150 countries for inclusion in the Changing Wealth of Nations (CWON) [11][12]. Water Valuation Options - Three approaches to water valuation are discussed: 1. Asset-by-Asset: A bottom-up assessment based on the trade of water-related assets, currently limited by data availability [12]. 2. Use-by-Use: A bottom-up approach assessing water use across various industries, requiring detailed country-level data [12]. 3. Service-by-Service: A top-down approach estimating the value of water-related ecosystem services, which is currently the most feasible method [12][16]. Data Sources and Methods - The report discusses the need for comprehensive data sources and methods to improve water valuation estimates, emphasizing the integration of environmental and economic data [11][12][16]. - It suggests that partnerships and collaborations could enhance data collection and methodological innovation for water valuation [12][16]. Next Steps - The report proposes a combination of bottom-up and top-down approaches to advance water valuation efforts, aiming for reliable estimates for 150 countries [12][16].