Futures markets to finance sanitations infrastructures

  • vissumo
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  • Digital, Commoditized, Monetized and Tangible treated wastewater
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Futures markets to finance sanitations infrastructures

Gold, copper, cocoa, oil, wheat, cotton ...etc are commodities priced prior their deliveries via futures markets. The commitments of the buyers and the sellers of those commodities x months or years before the commodity supplies enable to fund related productions. Treated wastewater can also be commoditized and sold/purchase prior its deliveries.
Commoditized treated wastewater can be delivered near the wastewater recycling center or embedded as input/water footprint of some commodities. Trade finance can therefore be correlated with effluents infrastructures finance.
Planning sanitation projects near commodity production centres could use this financial solution.
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  • Marijn Zandee
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Re: Futures markets to finance sanitations infrastructures

It seems to me that you would need a functional spot market (to sell waste re-claimed wastewater in the here-and-now) before a futures market would be able to exist.

Marijn Zandee

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  • vissumo
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Re: Futures markets to finance sanitations infrastructures

Thank you. Spot markets for immediate delivery of reclaimed water exist at local levels. We need to take consideration of the water exploitation index, floods, pollutions and water needs for the future. Many studies show that by 2030, there will be a need of at least 30% more water supplies. Imagine if this gap if for water for food and if investments in water infrastructures remains as low as today; should we just wait to exclude some population for food security although planning infrastructures according to offers and demands of treated wastewater would have the reverse effect (reduced food prices, risks and poverty alleviation via the valuing of wastewater)? Commitments of virtual water to be exported (water to be embedded as water footprint of some goods) should be backed by other insurance than simple crops shortfall or parametric insurance reimbursing financial damages but not mitigating risks or insuring sourcing a tangible way. Hedging volumes+prices via our designed futures contracts can insure deliveries at agreed price and we tackle mainly the presently 80 to 90% of presently untreated wastewater for which massive investments are needed and insure a market (via the access to sanitation and sales of wastewater). The presently untreated wastewater transformed into reclaimed water via our W2AREX futures can solve some gaps and we choose only technical solutions with wastewater energy to potentially “blue swap” carbon credits (treating wastewater while generating renewable energy can reduce temperature rises and/or climate changes). Planning is forcasting, the futures markets are meant to reduce uncertainties and risks and thanks to futures contracts for later maturities, some purchase commitments can become credit lines for building necessary infrastructures.
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