Senators Elizabeth Warren and Ro Khanna aim to prevent water trading to protect essential resources, citing concerns over speculation and profit-making in water-scarce regions.
Maanvi Singh reports for The Guardian.
In short:
- The proposed bill seeks to block private investors, including hedge funds, from trading water rights, particularly in California where water futures trading is practiced.
- This legislative effort, named the Future of Water Act, follows reports of increasing corporate acquisitions of water rights in the western U.S., raising alarms about potential profiteering.
- Environmental groups and a U.N. expert have criticized water futures markets, warning they could lead to water commodification and affect real water availability.
Key quote:
"Water is not a commodity for the rich and powerful to profit off of."
— Elizabeth Warren, U.S. senator
Why this matters:
There's a concern that market-driven water trading undermines sustainable water management practices. Profit motives may override conservation efforts, leading to unsustainable water use patterns.
Climate change is exacerbating water scarcity. One example: Climate disruption is resulting in diminishing winter snowpacks and rapid spring runoff, thereby depriving farmers of this valuable asset, and for much of the world, there are no known substitutes.
