Water: A Life Commodity and Investment Opportunity

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Written By: Jim Greenberg

green waterGlobal policy makers, businesses and the public have supported water investments for environmental, social and human capital with more than US$484 billion invested since 2007, reveals a new report.

According to the recent Green Transition Scoreboard (GTS) report, published by Ethical Markets, water-focused investments tracked higher than both clean technologies and green research and development (R&D), totalling 9% of all private investments since 2007.

The GTS report tracks investments made in water, R&D, clean technology, energy efficiency, renewable energy and green construction. The report found that water attracted $484 billion of the total US$5.3 trillion of private investment in all sectors.

Reasons for the surge in water investments include increased demand on water supplies from agriculture, energy production systems and a growing human population.

The GTE report states that most of the world’s water-related investments to date have focused on ways to recycle and protect water sources from pollution. However, due to development of clean water-producing technologies from saline water, including Ocean Thermal Energy Conversion (OTEC) and desalination plants, investments into saline water technologies are gaining attention.

The report projects that by 2020, prime investments into renewable technologies will double, reaching $10 billion – an amount that would drive down the cost of many clean and sustainable technologies.

Ethical Markets recommends that at least 10% of institutional portfolios be invested directly in companies that are driving the global transition to greener economies.

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