Liquid markets

Liquid markets

Prospects for introducing water trading

The UK Department for Environment, Food and Rural Affairs (DEFRA) recently released its response to the independent Cave review of competition and innovation in the water industry. DEFRA identifies climate change, population growth and tougher environmental standards as long-term challenges facing the water and sewerage sectors.

In this bulletin, we consider whether water trading and associated reforms to the water abstraction licensing regime would provide mechanisms for addressing these challenges, drawing on recent experiences from Australia.

Liquid markets