How people make money on water
World Water Day has triggered a flurry of reports on and analyses of the challenge facing many countries as incidents of drought increase and climate change makes dry regions even drier. The United Nations World Water Development report forpublished earlier this week, warns that almost 6 billion people are likely to live in areas that suffer water shortages for at least one month a year byup from 3.
The dire situation facing Cape Town, South Africa, a city of 4 million, has further highlighted the problem. Cape Town is gearing up for Day Zero, a date in the future when it is expected to turn off its municipal water supply, which has dwindled to life-threatening levels after a prolonged drought.
There are different ways to invest in water, starting with simply buying the shares of those companies that make everything from pipes, pumps, meters, filters and other equipment and infrastructure, to investments in the water utilities and environmental-services companies that clean, purify and distribute it.
Almost 6 billion gallons of treated water are lost in the U. We continue to watch the Cape Town crisis to understand how this event might create opportunities for water-focused investors in the near term.
The list includes utilities, infrastructure companies and the makers of equipment, instruments and materials, and names like the utility American Waterworks Inc.