Global water consumption is growing continuously, while climate change is leading to a decrease in the amount of available drinking water. The future supply of water to the world's growing population is a problem that is becoming increasingly explosive.
As supply and demand continue to diverge in the coming years, an ever-widening gap is emerging. Closing this gap will require massive investment in water collection, treatment and distribution infrastructure. Experts expect demand for this commodity to at least double over the next three decades. Industry, agriculture and consumers need water for the production of goods, plants and animals, for hygiene as well as for drinking. The thoroughly wasteful Western lifestyle is increasingly spreading to formerly disadvantaged countries.
Developing countries
In developing countries, the number of inhabitants is rising due to unchanged high birth rates and better food and medical supplies. Accordingly, the demand for water by the population in emerging countries is growing rapidly. In developing countries, there is already a widespread shortage of water. According to UNICEF calculations, more than 600 million people today have no access to clean drinking water. In this country, consumers use around 120 liters of water per day and per capita for drinking, showering, washing and flushing toilets. In addition, a much larger quantity of water is required for the production of food and other goods.
In all probability, the supply of water will not be sufficient to meet the increasing demand. As a result, there is a threat of large-scale desertification due to non-environmentally sound water extraction and the associated gigantic migration movements. Scientists agree that there is an urgent need to rehabilitate the aging infrastructure in the form of dilapidated water pipes and supply networks and to promote the construction and expansion of water treatment plants. Most industrialized nations also have a great need for investment, as a large part of their water supply facilities and networks date back to the 19th century. London, for example, renovated its Victorian-era water pipes at a cost of the equivalent of five billion euros. Experts reckon that the USA will have to invest heavily. Among other things, they will be needed for aging dams, such as Hoover Dam, and desalination plants.
Water infrastructure funds: a good idea for investors, consumers and the environment
Today, private investors in https://exness-vietnam.asia/trader-app/ who are concerned about the environmentally sustainable supply of water to humanity can opt for highly specialized infrastructure funds. These funds buy shares in asset developers in the water sector for the capital of their shareholders. Unlike morally questionable ventures such as buying water rights from governments, the goal is not to privatize water. Rather, an investment in water infrastructure specifically drives water collection, treatment and distribution projects. They ensure that companies have sufficient capital for their ambitious and expensive projects. When putting together the funds, the managers ensure compliance with closely defined standards. These standards stipulate, for example, that only shares in companies that generate a certain proportion of their total sales in the water business are eligible. In addition to large technology groups, these also include many medium-sized companies if they demonstrate a particularly high level of innovative strength.
