The future of Ethical Water

Monetization of Water How to deal with a scarce resource with millions of stakeholders requiring timely production and organised distribution? One answer comes from the example set by commodity exchanges and most importantly futures. Building on this idea, the ethical water futures market, an initiative pursued by Prana Sustainable Water, wants to increase the monetization of the 'Blue Gold' to offer in addition to an organised platform for existing water trading a transparent pricing mechanism for the flows of currently free public.

2 Comments

1. ** I consider my recommendations and ideas to be my express intellectual property ** Real water can only be billed locally and realistically can only be traded within watersheds, and no nation will accept the global community exporting its physical water. Thus, to install the actual cost of water in finished products, pricing virtual water into products and services is needed. But a top down approach would be extremely complicated and subject to meddling. Thus, it is up to the existing commodities trading community to ask raw material extractors and producers, as well as the energy production market, how much water goes into extracting each amount of ore, barrel of oil, cu.ft of gas, kg of food, wood, etc. These materials are the basics for all that we consume. The energy market requires water for all of their hardware and for actual energy production. But as with basic commodities, energy production is a cornerstone of the rest of our economy. Once the commodities trading community starts asking "how much water and at what cost", the actual price of water should start to work its way into the basic commodities and energy production markets. From there, the cost of water will manifest itself into finished goods and services. The water community and the commodities community will simply have to have a hands off approach towards basic drinking and hygienic water for the poorest 1-2 billion. There should be some sort of billable water for these people, but they cannot be refused the minimal amount to live. I've heard some third world cities are doing local billing rates and are able to use that water, along with local labor, to upgrade the local water infrastructure to some degree. The third world can't be billed into dehydration otherwise people have nothing to lose through violence, but at the same time, relying on NGOs and charity has done nothing for water needs but perhaps make things worse.

   1 Comment reply

   1. Water footprints of big water products could be internationally traded: this would incentivize productions to be done where & how it makes sense. For 2 years i fighted against export of roses from Kenya where water scarcity could been foreseen, today there is famine there... exports of water insive flowers on "fair" trade are still running!

2. The water industry, despite the growing status of "overlord" of man's economy and all industries in it (including mining and oil/gas), has to accept that for sound social policy it cannot deny the poorest people the basic 2-3 liters a day as drinking water. Community shower facilities may also be another donation type situation. On the other hand, there must be an end to free, clean water being used as an economic subsidy for development (like real estate in the US).