How investors can navigate the global water crisis — via financialpost Investor watercrisis innovation
With global water demand set to outstrip supply by 40 per cent by 2030, achieving the United Nations’ Sustainable Development Goal 6 requires a call for urgent action to resolve the chronic supply-demand imbalance for freshwater resources, particularly as climate change, robust population growth and rising geopolitical tensions work against us in the fight for global water security.Article content
With extreme weather events on the rise as a result of climate change, the impact on already depleted water supplies is being exacerbated. Indeed, as excessive rainfall, drought and natural disasters are ravaging the world at a greater frequency than before , we find ourselves in a state of emergency with struggles on both the demand and supply side.
With respect to the availability of water, the natural allocation of resources on the globe remains an ongoing issue in many parts of the world. For example, India is undergoing a continuous dispute with China over the construction of a hydropower plant on the Brahmaputra River in Tibet. This action is sparking concern over regulation of the direction of waterflow between the two countries.
This isn’t an issue that is strictly confined to emerging markets. For example, at present, more than half of the U.S. experiences droughts, and 231.4 million acres of U.S. crops are subjected to arid conditions. In the face of unstable global food supplies induced by Russia’s invasion of Ukraine, rapidly worsening drought conditions put further pressure on already tight supply chains in agriculture.
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