ANA assesses economic value generated per cubic metre of water in Brazil

Brazil’s National Water and Basic Sanitation Agency published an analysis of SDG indicator 6.4.1 on 22 October. The indicator relates gross value added in agriculture, industry and services to freshwater withdrawals for consumptive uses. The third edition of ODS 6 in Brazil presents a 2011–2022 series and measures economic value per unit of water, not irrigation’s physical efficiency, environmental quality or the sustainability of each individual use.

The economy-wide efficiency measure moved from R$83.64 per cubic metre in 2011 to R$80.75 in 2022, in constant 2015 prices. Within the 2030 Agenda window, it rose 3.0% between 2015 (R$78.4/m³) and 2022 (R$80.8/m³), including a 7.6% gain after 2019. ANA says the changes reflected movements in value added more than large shifts in water withdrawals, which remained relatively stable during the period.

Agriculture had the largest consumptive demand, withdrawing 39.5 billion cubic metres in 2022. Its sector indicator was R$1.02 per m³, the lowest among the sectors analyzed. Even so, agricultural efficiency increased 29.2% from 2015 to 2022 and 62.7% from 2011; it contracted 5.6% between 2019 and 2022. The agency says the lower value per unit of water does not diminish agriculture’s importance to food security, employment and the economy.

Services recorded the highest indicator, R$261.7/m³ in 2022, with gross value added above R$5.9 trillion in current prices (R$4 trillion at 2015 prices) and relatively low withdrawals. Industry was in the middle at R$116.9/m³, with current-price gross value added of R$2.2 trillion (R$1.1 trillion in 2015 prices). Between 2015 and 2022 the indicator rose 3.0% in services and 5.7% in industry. Sector composition strongly affects comparisons across places because service-led economies tend to generate more measured value per cubic metre than economies with a larger agricultural share.

The regional differences illustrate the effect: the Southeast reached R$129/m³ in 2022, while Goiás, Mato Grosso and Mato Grosso do Sul stayed below R$60/m³ through the series, ANA reports. The Federal District remained above R$450/m³, reflecting a service-oriented economy. The agency warns that the indicator can rise when commodity prices increase even if water use does not fall. It combines economic value with withdrawals, so price movements, output and sector mix can change the result; by itself, it does not prove better water management.