PRIVATE CAPITAL HAS THE POTENTIAL TO MAKE A SPLASH IN THE COLORADO RIVER BASIN

摘要

Water in the Colorado River basin is becoming increasingly scarce. As a result of drought and urban growth, water demands in the basin have grown to consistently exceed available supplies. Water levels in Lake Mead, the river's largest storage reservoir, are at the lowest levels on record, and a shortage declaration threatens to curtail water supplies to Arizona and Nevada within the next two years. While public water agencies and environmental nonprofit groups are working to address water supply shortages and ecologic risks, a recent study prepared by Encourage Capital with funding from the Walton Family Foundation presents an alternative solution to the basin's water supply problem: for-profit private investment. The study, titled "Liquid Assets: Investing for Impact in the Colorado River Basin" argues that socially conscious investors can earn competitive financial returns by investing in projects that provide ecological and social benefits for the basin through unconventional and innovative deal structures.