Albany, NY -- (SBWIRE) -- 07/14/2014 -- Water trading is a voluntary transfer of certain quantity of water between the buyer and the seller, so that the buyer of water can satisfy the demand at its end. It is a solution for all the verticals of end users that need water. Therefore, water trading serves as a solution for different users such as urban and agricultural that provides equal price and allocates water according to the demand. As quoted by the Forbes, there are many projects which have done hundreds of transactions of water worth USD 10 trillion across the globe. It has also identified several water projects and programs such as Water Quality Trading (WQT), Payments for Watershed Services (PWS), Dar es Salaam, Heredia, Saltillo and many others on global basis. Apart from these projects, there are other flow restoration or ground water mitigation projects as well.
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The global market for water trading is growing due to the high demand for clean water. The increase in population across the globe, along with the economic development, has resulted in numerous challenges for the water management. This has, in turn, resulted in the decline of the access to clean and healthy water. Further, there is a rise in the death toll of people due to the water borne illness and they also lack the capital to create infrastructure to combat these problems. All these circumstances have raised the global demand for water and have immensely increased the market for water trading. Presently, many nations have adopted the trend of clean water and to gain benefit from the international water trade. The countries with an ample supply of fresh and clean water, along with the huge capital, serve as a lucrative market for water trading. These countries can make huge profits by investing in the clean water based foreign markets or by exporting water to other countries.
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The major restraint to the global water trading market includes the high cost of infrastructure, required to transport water to a long distance, from a seller to buyer. The other barriers in the global water trading market are: legal constraints, water rights and political & social barriers. Among these, the water rights prevent the users to get clean water if there is any rationing system that gives preference to any senior member over the junior citizen; this ultimately complicates trading, as rights must be quantified before trading. Further, the social factors affecting the trading of water and the unwillingness of political leader to support water markets may hamper the global market for water trading and act as restraint.
The water trading market is rising as an international business. On the basis of leading countries in the global water trading market, the segmentation can be done as:
Canada has one of the largest fresh water reserves but the country is engaged in legal disputes. Recently, Turkey and Israel entered into an agreement to buy 1.75 billion cubic feet of water from turkey for 20 years. This was one of the greatest examples for easy method of transportation that used large plastic bubbles to bring water to storage facilities. Moreover, in July 2010, the UN General Assembly has also declared that the access of clean water is a human right, with the increase in demand for clean water.
Some of the market players in the water trading industry are: Murray Irrigation, Severn Trent, Integra Water Services, Calgon Carbon, California Water, Aqua America and Ameron.
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