"In finance, when you spend more than you earn for too long, you go bankrupt. We have done exactly that with our water 'checking' and 'savings' accounts."
"Water has no globally traded futures contract. It has no liquid benchmark price. It has no standardized risk metric that flows into credit models, equity valuations, or sovereign debt assessments."
"About half of the world's food supply is produced in areas where total water storage is on the decline, and that same area is home to three billion of the world's population."
Water resources are severely overdrawn, leading to a crisis termed 'global water bankruptcy' by UNU-INWEH. The economic implications are significant, with water ecosystems valued at $58 trillion, representing 60% of global GDP. In 25 years, 46% of global GDP may originate from high water risk areas. Analysts warn that markets are not accounting for water-related risks, resulting in a mispricing of water across asset classes. Drought, exacerbated by human activities, is already costing billions in economic losses.
Read at Fortune
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