Water scarcity has become a hot topic worldwide. In response, this month, for the first time ever, water found its way onto Wall Street, to be traded like other commodities such as gold and oil. According to Market Insider, water is being sold as contracts that are tied to the Nasdaq Veles California Water Index, which was launched two years ago. The index is driven by the volume-weighted average of the transaction prices in California s five largest and most actively traded water markets.
Why is this launch groundbreaking and what does it mean for the future of water? To us, it’s a step in the right direction for highlighting the value of water, but also the scarcity of it. Every day, we rely on it, but we take it for granted, a seemingly endless supply that flows from our taps. But this is not the case. We each must do more to conserve it and protect our natural resources.