The Colorado River is on the Brink of Disaster (WSJ)

The Colorado River is running dangerously low, and the seven Western states that rely on it can’t agree on how to share what’s left.

A deal deadline came and went in February, leading the federal government to threaten its own solution—one that would keep the dams generating power, but likely bring painful cuts to water use. “We’re positive about one thing—no one will be satisfied,” Interior Secretary Doug Burgum said last month.

The river provides water for 40 million people and more than 5 million acres of farmland. Its dams produce electricity for millions of people.

The current crisis is rooted in a compact Western states made in 1922. Officials overestimated how much water the river would provide. By the 21st century, as drought gripped the region, it became harder to meet the deal’s water-allocation obligations. The diminished water supply, coupled with a growing population, has led to years of shortfalls.

https://www.wsj.com/us-news/climate-environment/the-colorado-river-is-on-the-brink-of-disaster-628516be?mod=Searchresults&pos=1&page=1

Author: Christopher K. Merker, Ph.D., CFA

Christopher K. Merker, PhD, CFA, is a director with Private Asset Management at Robert W. Baird & Co. He holds a PhD in investment governance and fiduciary effectiveness from Marquette University, where he has taught the course “Sustainable Finance” since 2009. Executive director of Fund Governance Analytics (FGA), an ESG research partnership with Marquette University, he is a member of the CFA Institute ESG Working Group, an international committee currently exploring ESG standards, publishes the blog, Sustainable Finance, which covers current topics around governance and sustainability in investing, and is co-author of the book, The Trustee Governance Guide: The Five Imperatives of 21st Century Investing.

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