At the 5th International Congress “Water for the Future: Towards a New Agreement for Water,” held in Mendoza, Argentina, Dr. Silvia Saravia Matus, Economic Affairs Officer of the Natural Resources Division of ECLAC, delivered a keynote address with a central message: without valuing water, effective water governance is impossible. Making its economic, social, and environmental value visible allows for prioritizing needs, correcting incentives, improving efficiency, and strengthening the legitimacy of decisions in the region.

The presentation argued that the region is undergoing a historical transition. While the 20th century was characterized by expanding supply through large-scale projects, the current scenario is marked by systemic scarcity—that is, an altered hydrological cycle, increased competition for water use, and persistent gaps in access and quality that cannot be resolved solely through infrastructure investment. In this context, it is urgent to strengthen rules, institutions, and instruments for managing water as a strategic resource

As evidence of the pressure on the resource, the deterioration of aquifers was highlighted: 2,150 gigatons extracted between 1993 and 2010 and the critical phase of depletion of 21 of the 37 largest aquifers on the planet between 2003 and 2013, with effects such as soil subsidence and salinization.

The master class emphasized that the undervaluation of water translates into increasingly clear social, environmental, and economic costs. In Latin America and the Caribbean (LAC), conflicts over water use quadrupled between 2000 and 2019; furthermore, 54% of wastewater is not treated, with impacts on ecosystems and health (estimated losses of 2 million Disability-Adjusted Life Years [DALYs] per year). Added to this is the fragility of networks and infrastructure: around 40% of water is not billed, mainly due to losses.

In Argentina, he highlighted the importance of focusing efficiency on the usage structure: ≈75% of water is used for agriculture and ≈17% for municipal use, making it strategic to combine productivity, inclusion and territorial sustainability. 

Furthermore, he warned of emerging pressures on the resource that necessitate a reordering of priorities. He gave the example that, in the region, there are approximately 1,200 golf courses with an annual consumption of approximately 651.3 million m³, equivalent to Uruguay's urban water consumption for 3.5 years.

He also mentioned the high dependence between water and energy: about 47% of regional electricity comes from hydroelectric sources, which amplifies vulnerabilities to droughts and extreme events.

Looking to the future, he introduced an illustrative fact about the digital economy: the water required until 2027 to cool data centers and manufacture chips would be enough to supply drinking water to the entire population of Brazil for 5 years, showing that the digital transition also has a high water footprint.

ECLAC acknowledges that substantial investments are needed to reduce risks and close gaps in the water sector. It estimates that the region should invest around 0.28% of its annual GDP in flood control until 2030 to meet adaptation goals, and that increasing investment in water and sanitation to 1.3% of regional GDP annually for 10 years would not only universalize access to this right but also boost green jobs (generating 3.8 million green jobs annually). However, the report was particularly critical of implementation, given that, although regional public water spending is approximately USD 14.9 billion (≈0.3% of regional GDP), this is about five times less than what is required to achieve the human right to water and sanitation. At the same time, an implementation gap is observed, with approximately 28% of funds not being spent, pointing to challenges in capacity building, planning, implementation, and governance, in addition to financing challenges.

Therefore, the proposal is to create water fees with a public purpose and strong regulations, placing the role of raw water usage fees at the center as instruments to align incentives and outcomes. He emphasized that, if well-designed, these fees can discourage unsustainable practices, promote conservation, and improve cost distribution, always prioritizing the human right to water and ecosystem protection.

For these to work, the following criteria must be considered:

• Financing: must recognize investment and operating costs (who pays?).
• Total cost: must include producing, conserving, managing, using and protecting water and its ecosystem.
• Scarcity signal: It should reflect the opportunity cost and relative scarcity, especially in drought.

Dr. Saravia Matus emphasized that the desirable features of these fees should include an environmental purpose, revenue collection for management, and should be progressive, considering the "polluter pays" principle, to protect the most vulnerable population and prevent the cost of degradation from falling on society as a whole.

A common message was to avoid dichotomies. More than choosing between market, community, or state, the crucial factor is having solid rules: a model that doesn't regulate fails; one that doesn't protect ecosystems is not sustainable; and one that doesn't correct asymmetries is not fair.

As a minimum, it proposed four pillars: the Human Right to Water and Sanitation, mandatory ecological safeguards, prioritization of productive uses, and operational coherence, in addition to a robust regulator with effective authority. Starting with the territories under the greatest stress (cities with deficits, critical basins, and intensive production centers), it advocates for gradual implementation with oversight, and the application of shared but differentiated responsibilities, where those who consume the most or can contribute the most do so proportionally. 

The final message of the presentation highlighted that, in order to close the implementation gap, it is necessary to have and strengthen the technical, operational, political and prospective capacities (TOPP), which allow instruments to be converted into effective implementation, with legitimacy and a vision for the future at the regional level.

In parallel, ECLAC held a meeting with the Executive Committee of the Federal Water Council of Argentina (COHIFe) and its General Secretariat, along with representatives of the 24 provinces that comprise it, and the Autonomous City of Buenos Aires, within the framework of its XLVI Ordinary Assembly.

This meeting identified potential synergies for reviewing water tariffs applied by the Provincial States, with the aim of strengthening integrated water resource management, promoting the harmonious and comprehensive development of the country in water-related matters, and contributing to the strategic formulation and monitoring of the National Water Policy, in accordance with the Guiding Principles of Water Policy of the Argentine Republic. All of this will be done while respecting the original jurisdiction that the Argentine provinces hold over water resources.