The Intersection Between Climate Change and Financial Risk

The video discusses the importance of water as a commodity, especially in light of recent wildfires and climate change. It highlights a study on the risks climate change poses to financial stability and the role of financial markets in mitigating these risks. The introduction of water futures contracts is explored as a tool for price stability and risk management, particularly in California's agricultural sector. The video also examines market liquidity and the participation of various financial actors in water futures trading.

In what ways do water futures contracts provide clarity to investors?

What role does climate change play in the demand for water in California?