TLDR:
- International Water Day focuses on the need for water security and unity.
- Climate change is endangering global water sources, leading to water scarcity.
On March 22nd, International Water Day serves as a reminder of the importance of water security and unity among nations. This year’s theme, ‘Water for Peace’, highlights the need for cooperation to ensure access to shared water sources. With only 24 out of 153 countries sharing agreements for water sources, climate change exacerbates water scarcity, causing nations to protect their own interests. Fintech has the opportunity to address these challenges by facilitating access to voluntary carbon markets and ensuring water security for future generations.
Climate change poses a significant threat to water sources worldwide as rising temperatures, erratic rainfall, and melting glaciers disrupt water supplies and ecosystems. The World Meteorological Organization reports a decrease in terrestrial water storage, impacting water security. The UN urges organizations to track and mitigate emissions to mitigate water scarcity. Fintech innovations, such as open banking infrastructure and payments rails, provide tools to analyze data and assets, bridging the gap between businesses and emission mitigation efforts.
Fintech’s intersection with voluntary carbon markets offers new avenues for reducing environmental impact. Platforms like Nori and MioTech streamline the buying and selling of carbon credits, making it more accessible to businesses. Governments are also recognizing fintech’s potential in combating climate change, as seen in initiatives like the “Caribbean FinTech Sprint for Financial Inclusion.” International Water Day underscores the urgency of addressing climate change in real-time, with fintech playing a crucial role in improving access to carbon markets, tracking emissions, and increasing climate data accessibility throughout the year.
