Trading water

Investment in water rights is being promoted as a way to combat the effects of climate change on water supplies. While this could lead to a fully-fledged global trading market, successful investment in water rights will require deep domain expertise. Until now, most of the debate and action on climate change has focused on emissions and the need to reduce carbon footprints. Recently, however, market players are beginning to consider the affect global warming is having on water. As water conditions shift globally, individuals, industry and the public sector are being encouraged to look at ways to reduce their ‘water footprints’. However, for some, water is not just a precious resource, but a valuable commodity to be traded on the financial markets.