Table of Contents:
- Water the commodity gold of 21st century?
- Water over carbon
- Forget carbon as a commodity— predictions are flying that water will become a premier market good. Is a day near when water will be traded as a commodity, valued according to quality and quantity?
Will the global water crisis reach a level where market mechanisms take over? Forget carbon — predictions are flying that water will become a premier market good. Richard Sandor, CEO of Environmental Financial Products, predicts water may soon be traded as a commodity, valued according to quality and quantity. But the weight of water on a trading system would bring a rush of unintended consequences; it’s an idea that only shines bright at roundtable discussions.
Water is unique — there is no substitute. But will it be the new gold? One thing is for certain: water scarcity is an explosive price-driver for all related goods, particularly agricultural commodities. Maybe a better question: Will agricultural commodities be the “virtual water” of the 21st century?
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