--- title: "Wall Street Is Now Betting on the Future of Water Supplies" description: "Wall Street is starting to trade futures contracts tied to the price of water for the first time in US history. Learn about this report." date: "2020-12-09" modified: "2020-12-16" authors: - name: "Victor Tangermann" job_title: "Senior Editor" link: "https://futurism.com/authors/victor" url: "https://futurism.com/the-byte/wall-street-betting-future-water-supplies" categories: - "Future Society" tags: - "futures trading" - "the digest" - "wall street" - "water scarcity" - "water supply" --- # Wall Street Is Now Betting on the Future of Water Supplies ![Wall Street is about to launch futures contracts tied to the price of water for the first time in US history, as Business Insider reports.]() *\Image: Image via Pixabay\* ## Water Futures Wall Street is about to launch futures contracts tied to the price of water for the first time in US history, as [*Business Insider* reports](). As water becomes scarce due to climate change, investors are planning to effectively bet on the availability of water in California. The contract laid out by CME Group, a global markets company, is linked to the state's $1.1 billion local water market. ## Droughts and Scarcities California, along with large swathes of the west coast, has been hit hard by soaring temperatures and [off-the-scale wildfires]() this year, leading to large-scale [droughts](). "With nearly two-thirds of the world's population expected to face water shortages by 2025, water scarcity presents a growing risk for businesses and communities around the world, and particularly for the $1.1 billion California water market," Tim McCourt, a CME Group executive, said in a statement, as quoted by *BI*. ## Risk Management CME Group's goal is to allow the cost of water to become more predictable in the longer term while also ensuring that there is less risk in managing water supplies. That means the contracts will likely be used more frequently by farmers than investors, as *Business Insider* points out. "Climate change, droughts, population growth, and pollution are likely to make water scarcity issues and pricing a hot topic for years to come," RBC Capital Markets managing director and analyst Deane Dray [told *Bloomberg*](). "We are definitely going to watch how this new water futures contract develops." **READ MORE:** [Water futures set to join likes of gold and oil and trade on Wall Street for first time ever]() \[*Business Insider*\] **More on California:** *[Scientists: Earth Should Brace Itself For Multi-Decade "Mega-Droughts"]()* ## Author I've been at Futurism since 2017, where my role has evolved to encompass design, writing, and increasingly editing. I've always been fascinated by space exploration and advanced transportation, which I've leaned into by interviewing luminaries in those fields while closely following the dimensions of policy and regulation that allow next-generation projects to succeed -- or, sometimes, to fail. I'm also keenly interested in the effects of generative AI on society, policies, and democratic institutions, as well as clean energy, physics and biology, and the vagaries of tech leadership. My work for Futurism has been cited by publications including Ars Technica, Gizmodo, PC Magazine, Jalopnik, Fox News, and the New York Post. I spent my childhood living in locations including Manila, the Philippines, and Geneva, Switzerland, attended McGill University, and now live in Toronto, Canada. Before Futurism I worked at AskMen and a small photography studio. In my free time, I'm an avid gardener, foodie, and craft beer lover, as well as a maker of artisanal hot pepper sauces. I have a magnificent dog named Freida. ### Author social links [Bluesky]()