Dive Into These ETFs And Stocks On World Water Day

Being the most essential element for life on earth, water needs to be conserved. This is because the gap between water demand and supply has been growing rapidly and the International Food Policy Research Institute expects it to rise to 40% over the next 15 years.

Climate change, drought conditions, pollution, poor sanitation, an ever-expanding population, and increasing consumption have resulted in water scarcity in many parts of the world. Wastewater runoff from agriculture, industry, and expanding cities, especially in developing nations, is another major issue. According to the latest report from UNESCO, about 3.6 billion people are estimated to be living in areas with a potential for water scarcity for at least one month per year, and this number could rise to as many as 5.7 billion people by 2050.

Global demand for water has been rising at a rate of 1% annually and would continue to grow significantly during the next 20 years, per United Nations. Notably, about 70% of the total demand comes from irrigation whereas demand from industrial applications and domestic households account for about 22% and 8%, respectively.

Given the scarcity of water, both emerging markets and the United States have increased their spending on water and wastewater treatment equipment. In fact, emerging markets account for half of the total infrastructure spending worldwide with China leading the way. China has enacted new water pollution prevention and control law this year, which includes resource protection, waterline management, pollution prevention and control, and ecological restoration.

Donald Trump’s  2019 budget proposal includes an initiative that would save $350 billion for drinking water pipes to guarantee that there is no another Flint, Michigan-style water crisis in the coming few years.

Per Grand View Research, spending on global water and wastewater treatment is set to boom to $10341 billion by 2025 from $628 billion in 2015. Additionally, recycling wastewater can ease global water shortages while protecting the environment.