December 10th 2023 – As world leaders discuss climate change’s severe impacts on water at the Conference of Parties (COP28), water activists and advocates declare a day of action for all levels of government to protect water resources from financial markets and corporate interests. The profound disruption of meteorological systems and the stress of the climate crisis on water resources compel us to consider access to clean water a crucial issue for the coming decades, especially from the perspective of intergenerational justice.
2023 marks the third anniversary of the entry of water (Nasdaq Veles California Water Index) onto the Chicago Mercantile Exchange. Since December 2020, much like oil, gold or other commodities, water can be traded on the U.S. commodities market. According to the United Nations Special Rapporteur, Pedro Arrojo-Agudo, this unprecedented entry is “dangerous and irresponsible” as it characterizes water as “just a resource that is scarce and useful […] instead of a public good and of general interest” (Langrand, 2022). In the face of water crises affecting many states amid climate change, intensifying the commodification and financialization of water offers no solution to the problem and puts those most vulnerable around the world at greater risk.
On December 10th, we celebrate the 75th anniversary of the Universal Declaration of Human Rights, an international code that forms the foundation of the United Nations (UN) (United Nations, n.d.b). The UN Sustainable Development Goals, that include SDG6, which commits to ensuring equitable access to clean water, hygiene, and sanitation, extend these fundamental human rights as defined in 1948 (United Nations, n.d.a).
Water hoarding
Water markets can lead to water grabs and water hoarding, where claims holders and potential buyers can buy up water claims to effectively speculate on the price of water at the expense of nearby residents and the environment (FWW, 2023).
These practices can decrease water availability and increase the price of water in areas already experiencing water shortages, leading to shutoffs and causing residents to fend for themselves when it comes to obtaining water (FWW, 2023).
Price gouging
Private water markets significantly increase water bills for consumers while encouraging unsustainable water use practices and deteriorating water quality (FWW, 2023).
Private water markets are associated with higher water prices and less affordability for low-income households, while it can cause small farmers to lose access to water due to insufficient funds, like in Chile or Australia.
Misuse of supplies that should be protected
Markets allocate water to the highest bidder – not to the highest public value for people and the planet. This incentivizes a race to the bottom for the environment, where water claim owners drill deeper wells and over-exploit groundwater resources. This leads to drying out shallower wells of neighbors that cannot afford deeper wells and causing subsidence (land sinking) (FWW, 2023).
- Support national bans on water futures trading, such as the Future of Water Act proposed by U.S. Sen. Elizabeth Warren and Rep. Ro Khanna, and similar legislative reforms, aimed at stopping and prohibiting water financial markets to protect water as a common and public trust resource;
- Provide financial and moral support to organizations opposing the financialization of water to strengthen their capacity to advocate and influence policies;
- Advocate for water to be recognized as a common good and public trust in your municipality state or country, emphasizing its significance as a vital resource shared by all;
- Urge authorities to respect United Nations Sustainable Development Goal 6, which acknowledges water and sanitation services as a fundamental human right;
- Pass national and local legislation to affirm and support water and sanitation as fundamental human rights and guarantee the rights of all community members to safe, publicly controlled services; and
- Actively encourage your local government to become a Blue Community and recognize water as a human right and promote publicly financed, owned and operated water and wastewater services and resources management.
Langrand, M. (2022). The dangerous game of trading the future of water. Geneva Solutions, online https://genevasolutions.news/explorations/the-water-we-share/the-dangerous-game-of-trading-the-future-of-water#:~:text=In%202020%2C%20water%20joined%20oil,world%20has%20access%20to%20it.
United Nations (n.d.a). Droits de l’homme. Impacts académiques, online https://www.un.org/fr/impact-universitaire/droits-de-lhomme#:~:text=Tous%20les%20Objectifs%20de%20D%C3%A9veloppement,%2C%20et%20%C3%A0%20l’ind%C3%A9pendance.
United Nations (n.d.b). La Déclaration universelle des droits de l’homme. Documents, online https://www.un.org/fr/universal-declaration-human-rights/.
UN Special Rapporteur on the Human Rights to Water and Sanitation (2021), Risks and impacts of the commodification and financialization of water on the human rights to safe drinking water and sanitation – Note by the Secretary-General, https://www.ohchr.org/en/documents/thematic-reports/a76159-risks-and-impacts-commodification-and-financialization-water
FWW (2021), The Water Future’s Market: Gambling With Our Water, https://www.foodandwaterwatch.org/wp-content/uploads/2021/12/FS_2112_Water-Futures-WEB.pdf
FWW (2023), Wall Street’s Water Grab, https://www.foodandwaterwatch.org/wp-content/uploads/2023/09/FSW_2309_WaterGrabs.pdf
FWW (2021), More than 100 Groups Call on CFTC To Shut Down Dangerous ‘Water Futures’ Market, https://www.foodandwaterwatch.org/2021/12/20/more-than-100-groups-call-on-cftc-to-shut-down-dangerous-water-futures-market/
English
– Quebec Water Act | Act to affirm the collective nature of water resources and to promote better governance of water and associated environments | Quebec Governement
Français
– Loi – Loi affirmant le caractère collectif des ressources en eau et favorisant une meilleure gouvernance de l’eau et des milieux associés – Gouvernement du Québec
English:
– Article – Bloomberg Water Grab Series – Bloomberg
– Article – Financialization and water in Africa – FAME 2022 Alternative World Water Forum
– Article by Shiney Varghese – The Real Value of Water – IATP, Institute for Agriculture and Trade Policy
– Article by Dr. Steve Suppan – Futurizing water prices: How, why, and who may benefit? – IATP, Institute for Agriculture and Trade Policy
– Article by M. Legrand – The Dangerous Game of Trading the Future of Water – The Geneva Solutions
– Blog post – The real value of water: valuing the invaluable and the treat of pricing water – Blue Planet Project
– Article – Climate change, pollution threaten Iraq’s ancient marshes – United Nations
– Report – Risks and impacts of the commodification and financialization of water on the human rights to safe drinking water and sanitation – United Nations
– Article – Brazil state lawmakers greenlight water utility Sabesp’s privatization – Reuters
French:
– Documentaire – Main Basse sur L’eau – ARTE
– Article – 739 millions d’enfants ont été exposés dans un état de pénurie d’eau élevée ou extrême – La Libre
– Article – Les changements climatiques et la pollution menacent les marais ancestraux d’Iraq – Organisation des Nations Unis
Espanol:
– Articulo – Cambio climático, la contaminación amenaza las antiguas marismas de Iraq – Naciones Unidas
عربي:
-شرط – شرط تغير المناخ والتلوث يهددان الأهوار القديمة في العراق
English
– Fact Sheet – The Water Futures Market: Gambling with our Water – Food and Water Watch
– Fact Sheet- Wall Street Water Grab – Food & Water Watch
– Online conference – Water Financialization 101: Water Futures, Water markets and Reclaiming the water commons – Food & Water Watch, Institute for Agriculture & Trade Policy, the Transnational Institute and the Blue Planet Project
– Conference event – Mobilising Faith Communities for Action – Anglican Communion & WCC
English
– Campaign – Human Rights day 2023 – United Nations
Français
– Déclaration de la société civile internationale – L’eau pour la vie, pas pour le profit ! – Coalition Eau
– Campagne – Journée des droits de l’hommes 2023 – Organisation des Nations Unies
Español
– Campaña – Día de los Derechos Humanos 2023 – Naciones Unidas
عربي:
– حملة – يوم حقوق الإنسان 2023
Launch of the #WaterForLifeNotForProfit campaign
— Eau Secours (@EauSecours1997) December 8, 2023
💧≠💰
The entry of water in the stock market in 2020 poses serious risks to drinking water worldwide. Day 1 of the campaign, here is the first risk of the commodification of 💧 on the stock markets.
ℹ️: https://t.co/YvKIATToDA pic.twitter.com/01r6Qh1Iz3
Quebec Water Act | Act to affirm the collective nature of water resources and to promote better governance of water and associated environments | Quebec Governement
English:
Article – Bloomberg Water Grab Series – Bloomberg
Article – Financialization and water in Africa – FAME 2022 Alternative World Water Forum
Article by Shiney Varghese – The Real Value of Water – IATP, Institute for Agriculture and Trade Policy
Article by Dr. Steve Suppan – Futurizing water prices: How, why, and who may benefit? – IATP, Institute for Agriculture and Trade Policy
Article by M. Legrand – The Dangerous Game of Trading the Future of Water – The Geneva Solutions
Blog post – The real value of water: valuing the invaluable and the treat of pricing water – Blue Planet Project
Article – Climate change, pollution threaten Iraq’s ancient marshes – United Nations
French:
Documentaire – Main Basse sur L’eau – ARTE
Article – 739 millions d’enfants ont été exposés dans un état de pénurie d’eau élevée ou extrême – La Libre
Fact Sheet – The Water Futures Market: Gambling with our Water – Food and Water Watch
Fact Sheet- Wall Street Water Grab – Food & Water Watch
Online conference – Water Financialization 101: Water Futures, Water markets and Reclaiming the water commons – Food & Water Watch, Institute for Agriculture & Trade Policy, the Transnational Institute and the Blue Planet Project
Conference event – Mobilising Faith Communities for Action – Anglican Communion & WCC
Campaign – Human Rights day 2023 – United Nations
Déclaration de la société civile internationale – L’eau pour la vie, pas pour le profit ! – Coalition Eau
Do you want to know more about our campaign? Want to get involved? Get in touch: communautebleue@eausecours.org