Like almost everything these days, it’s complicated. Trust me when I tell you that perfectly rational people lose their minds when you tell them water is going to be changed in some way; a reallocation, a reduction in permitted quantities, redirection of water from “where it is” to “where it’s needed” can set them off. Talk about “privatizing water” and you get to a whole other level of emotion. So, I was a little surprised when water trading began back in December and it got nary a protest. Some Californians have been pushing for this for years, decades even. When there is less water, suppliers have to pay more on the wholesale market. Trading in water futures is a bet that just maybe, they’ll be able to get that water at a lower cost. But, as climate change brings more severe and longer droughts along with other major weather events, it’s a dicey approach. Future trading is done with gas and oil, food products, and more. But this is water. Lowering its cost is one thing, ensuring everyone has equal access to water is another.
https://www.ctvnews.ca/climate-and-environment/investors-can-now-trade-water-futures-1.5223312