Leading international consultancy Arup has published a thought-provoking and wide-ranging discussion paper aimed at stimulating debate around new ideas on water, social and natural capital.

Launched to act as a knowledge catalyst, Out of the Blue looks at the future of water and how social, environmental and economic factors can be better understood and valued.

The high profile paper brings together senior figures and policy experts from NGOs, academics,public agencies, businesses and Arup itself, with each contributing a piece on new thinking or practice.

The book was initiated as a result of a discussion on “natural capital” between Arup’s Global Head of Water, Mark Fletcher and Lord Chris Smith, Chairman of the Environment Agency, during the launch of the Sustainable Solutions Raising the Water Mark in Westminster in November 2012 .

Lord Smith, Mark Fletcher, Anders Berntell, Executive Director, 2030 Water Resources Group, Stuart Orr Head of Water Stewardship, WWF and Jon Rathgen Water Industry Team, Scottish Government are among an extensive list of 24 contributors to the paper. The contributions range from practical measures in local communities to global perspectives.

Introducing Out of the Blue, the Environment Agency Chairman said the value placed on the natural capital of water was at the heart of environmental, economic and social policy-making.

Mark Fletcher’s synopsis said that a growing world population and increasing living standards would drive inexorably rising demand for water, while at the same time a changing climate means the planet is more prone to water distress. Droughts and shortages, floods and excess, and sometimes both, will become regular occurrences not freak events. On a ‘business as usual’ trajectory, global water demands in the year 2030 will surpass the available resource by 40%.

He went on to draw the following five main conclusions that span the articles and mark out an agenda for sustainable, integrated and resilient water management in the future.

1. Water is becoming an ever more critical resource – requiring the adoption of rounded, forward looking water management that fully takes into account economic, social and environmental value.
2. There is great opportunity to widen the application of innovative, next generation solutions (which are available and proven) that enhance water security, efficiency and quality. Innovative practice now should be made the norm tomorrow.
3. Water infrastructure must be done differently – including far greater levels of community engagement and benefit, catchment based approaches, and flexibility built in to adapt to an uncertain future.
4. Business must be at the heart of a new approach. Water companies and major water using (or potentially polluting) businesses can demonstrate corporate responsibility, reduce their risk exposure and deliver bottom line benefits through sustainable water management to achieve more sustainable outcomes.
5. Natural and social capital needs to be properly valued which may involve financial valuation of ecosystem services where these would otherwise be ignored in decision-making. The social value of infrastructure should be taken into account.

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