Water, green investment?

If you’re thirsting for an interesting investment, you might want to think about water. Investing in the precious resource could prove very lucrative over the next decade as its use in consumption, agriculture, sanitation and industrial production surges. Putting some money into the commodity before it becomes even scarcer could be a good way for investors to make what’s a green investment turn into real green.

Many people get excited by the concept of investing in the global water industry, and those investors who recognised the opportunity a decade ago have been handsomely rewarded.

Why invest in water? It’s a natural resource that has a limited supply and no true substitute. As the economies of developing nations continue to improve, water use is expected to increase. A recent report from the United Nations estimates that about 1.1 billion people worldwide do not have access to fresh drinking water — and 2.6 billion do not have adequate sanitation systems.

Solving those problems by building and renovating water-system infrastructure, developing technologies to purify water and transporting water to people who need it present powerful financial and investment opportunities. To meet the coming demand, some analysts project the world may need to spend as much as $1 trillion per year through 2030 applying technologies to conserve water, maintain and replace water-related infrastructure and to construct sanitation systems.

You may want to know how the investment on water industry usually works and which area did they spend money on.Ultimately, water investing is about investing in companies benefiting from the common set of long term tailwinds of increasing water supply-demand imbalances, massive infrastructure rehabilitation needs, new infrastructure requirements due to population growth and urbanisation, and increasing regulatory influences. These companies provide the operations, equipment, chemicals, and services that make water available for municipal, industrial, and agricultural markets. While easy to grasp in concept, there remains misconceptions about how to go about it.

-Ziyi

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