North America's water and wastewater infrastructure is old and crumbling. Boil-water advisories are being issued in record numbers. Oil sands development is threatening water reserves in Alberta, Canada. A crippling drought in California this year has led to calls for swift modernization of water-supply systems.

And that's just one continent. This theme carries around the world, be it a lack of wastewater treatment in China or chronic drought in Africa. In the Middle East, some countries are using water at 20 times the rate at which rivers and rainfall can replenish it. "Over the next 10 to 15 years, the Middle East will need an extra 50 to 60 billion cubic feet of water annually due to rapidly escalating demand, driven by population and economic growth, and declining natural water availability," according to a recent economic report from CIBC World Markets. It says desalination capacity in the region is expected to rise 80 per cent over the next two years alone.

So the crisis is clear. But are the investment opportunities? Investment in water technologies hasn't grown as quickly as other cleantech areas, such as solar or biofuels. In fact, between 2005 and 2006 watertech investments fell substantially as other cleantech categories rose. But watertech bounced back in 2007, and growth appears to be picking up. If the ISE Water Index is any indication, 2008 will hold up well - the index is up 2 per cent so far this year. By comparison, the S&P 500 Index is down 12 per cent.

A ripple of activity has turned into a wave, and the Emerald team is riding the crest, with investments in water infrastructure, filtration, smart irrigation and even ocean wave power generation - a perfect fit for powering the world's desalination plants. To learn more, please read on:

In this edition >>

New Investments: Pressure Pipe Inspection Company (PPIC)

Portfolio Update: Spotlight on Pelamis Wave Power, Inge AG

Industry News: Fishing in the right waters

Insight is distributed to our global network of investors, portfolio companies and industry colleagues to inform you of our latest news, investments and exits, and to offer unique industry insights.