Water becomes an investment opportunity in the midst of the water crisis and the risk of scarcity in the future

Estadão, Denise Luna in 27/08/2021

Like any product with a risk of scarcity, water begins to appear as an investment opportunity for the financial and productive sectors. Either in sanitation, the second largest sector that uses the input, or in dedicated funds, water in Brazil has not yet reached a fair price, according to specialists, but gradually the Brazilian market follows the international trend of understanding that the product can become scarcer. The most emblematic signs come from the hydroelectric power plant reservoirs, which are at critical levels, but other productive sectors, which compete for water with energy generation, such as agriculture and basic sanitation, are beginning to be affected.

The fact that Brazil has 12% of all freshwater on the planet perhaps explains the myth created that this good in the country is infinite, which has long been overthrown by science and is increasingly evident in recurrent water crises. First in 2001, then in 2014, and this year, the country now and again faces a problem that threatens not only the supply of energy, but an entire economic chain, mainly agribusiness, responsible for almost 70% of water consumption in the country.

Content may require login or subscription