Given the current global environment and concerns about climate change, investors are increasingly looking at initiatives and technologies which advance the development of renewable energy projects - the current drought in Cape Town and surrounding areas, for instance, has caused a surge in impact investing by local investors in innovative water re-use projects. Where more than half the world face global water scarcity, there is an impetus to explore the potential of water markets and the role of impact investments so as to drive sustainability and to solve water scarcity.
Source: The Source
The Nature Conservancy released a report, “Water Share: Using water markets and impact investment to drive sustainability,” which explores how water markets, when paired with creative impact investing solutions like Water Sharing Investment Partnerships, can help alleviate water scarcity, restore ecosystems and drive sustainable water management.
Additionally, Water.org’s WaterCredit model strives to tap into the $12 billion demand globally among families at the base of the economic pyramid (BOP) for access to microfinance to meet their water supply and sanitation (WSS) needs, enabling local microfinance institutions (MFIs) to provide small and affordable loans to families at the BOP for WSS needs. Water.org has secured $40 million in commitments from a growing community of change-makers and visionaries such as the IKEA Foundation, PepsiCo Foundation, The MasterCard Foundation and Caterpillar Foundation for its WaterCredit programs.
Impact investing, with its pragmatic approach to profit and its commitment to delivering social and environmental benefit, should actively engage with the market for water related investing and influence its development for the better.