Water as a Commodity
Why Trade Water
The UN and the World Bank, as well as virtually every other major international body involved in global economics, has become acutely aware that the supply of fresh water is limited while global demand is ever on the increase. Not only this, but the governments and landowners responsible for stores of fresh water have traditionally opted to invest in industries that underestimate the importance of this vital resource.
Water is squandered in production processes, even those as simple as the manufacturing of T-shirts, because a definite value is not attributed to it.
The only truly effective method of protecting the supplies we have is to turn water into a financial asset.
The fiscal benefits include the use of fresh water as recognised collateral. This means that states or anyone in possession of large quantities of fresh water can now ascribe a value to their asset and use it against loans.
Financial institutions wishing to invest in commodities (or hedge against inflation) will be able to add water to their portfolio. In addition they will be able to invest in an asset that is ultimately more stable than specific commodity markets by looking at water not only as a commodity in its own right but as a denominator representative of all agricultural stock – a commodity index.
Water is the new ‘blue’ gold!
AQUA INDEX makes all this possible.
Commodity Exchanges
Fresh water is recognised as a commodity by the EU and is subject to both an increasing demand and a limited supply.
The world’s commodity exchanges, such as the Chicago Mercantile Exchange (CME) and the London Commodity Exchange (LCE – now part of LIFFE), have yet to trade securities or derivatives on water.
AQUA-INDEX intends to provide the first ever platform for the creation of a market for investment in water.
Aqua-Index
Aqua-Index is a global project and group of companies which was established over a decade ago to promote the trade of water as a commodity and a new asset class.
Despite water being the most essential requirement for life, there is still a lack of management and economic infrastructure, which results in scarcity, contamination, hunger, slower development, and climate change dysfunction.
Aqua-Index, with more than 700 approved patent claims in various continents, has been developing a set of financial instruments in order to establish price discovery that we hope will incentivise producers to allocate resources more responsibly and correct inefficiencies in the use of water worldwide.
Aqua-Index has developed…
- A method of trading physical water based on standards of water quality.
- Methods to collateralize physical water for loans, bonds, tokens, and other financial instruments.
- Pricing methods and algorithms to calculate the virtual (economic) value of water based on its usage.
- Water Indexes (published daily on Bloomberg) based on the economic value of water.