Water crises are escalating worldwide. Severe shortages grip Africa, the Middle East, and the US, while Europe now also faces rising water scarcity, forest fires and other climate threats. Water is progressively becoming a more critical resource impacting food security, industry, and climate adaptation, pushing the EU to adopt a more strategic approach, similar to its handling of energy and transport. To address these concerns, the European Commission is set to release a new European Water Resilience Strategy in Q2 2025 as part of its competitiveness agenda, as mentioned in the Competitiveness Compass and Clean Industrial Deal. European Commissioner for Environment, Water Resilience, and a Competitive Circular Economy, Jessika Roswall, will lead the strategy and all the legislative proposals that will follow.
The Water Resilience Strategy addresses both water resilience and efficiency, outlining initiatives that the European Commission will focus on in the coming months and years. This is crucial for businesses as it offers clarity into what they should prepare for.
Furthermore, it will support several key Commission priorities, including the Vision for Agriculture and Food, the Clean Industrial Deal, the Chemicals Industry Package, the European Oceans Pact, and the Circular Economy Act.
So why do we need a Water Resilience Strategy and what will be in it? Keep reading to find out.
Why is the Water Resilience Strategy needed?
Lack of unified strategy
Despite strong EU water laws, poor management and environmental degradation harm ecosystems and businesses. A clear water strategy is needed for better regulatory clarity.
Balancing competitiveness and water use
Industries like power, hydrogen, and tech consume vast amounts of water, stressing EU reserves. A sustainable strategy is crucial to support both competitiveness and water conservation.
Rising extreme events
Climate change is increasing floods, droughts, and shortages, damaging infrastructure, ecosystems, and economies. Improved resilience is urgently needed.
Economic impact
Water scarcity is raising costs and reducing productivity across key sectors. Without action, water-related losses in the EU could reach €65 billion annually by 2100. A strategic water approach is essential for industries and governments.
Six policy pillars of the Water Resilience Strategy
While the European Commission has yet to reveal specific policy proposals stemming from the Water Resilience Strategy, it is clear that the strategy will centre around six key policy pillars, outlining its main priorities.
1. Repair the broken water cycle
Recognising the multifunctional nature of water resilience, which must encompass the entire water cycle. This includes green water resilience, supported by effective land-use management and a source-to-sea approach. This approach ensures policy coherence across different water-related directives and sectors, such as agriculture, energy, biodiversity, and industry.
2. Enhance the implementation of existing legislation
The EU already has dedicated water legislation; however, implementation has been weak, enforcement remains inconsistent, and funding is insufficient. An example is the Water Framework Directive, where the EU is significantly off track in meeting its 2027 targets.
3. Simplify regulatory processes
Simplifying EU legislation has been a key focus of the new mandate, aiming to reduce bureaucracy and make it easier for businesses to operate. Recent examples are the Omnibus Simplification Packages on Corporate Sustainability Reporting (CSRD) and Due Diligence (CSDDD), also affecting the water industry.
4. Drive innovation
Strengthen the EU’s water industry by enhancing its competitive edge, advancing clean tech, adopting a circular economy approach, and promoting the digitalisation of water management, cycles, and utilities. Innovative technologies, such as AI-driven monitoring systems and smart water grids, will be essential for effective water management.
5. Funding infrastructure
The EU, the European Investment Bank, and national budgets invest approximately €63 billion annually in water resilience; however, funding is fragmented across multiple policy areas. To address this, the European Commission plans to introduce a dedicated water component in the next multiannual financial framework (2028-2034) to streamline financing. This likely means that businesses involved in the water industry or those with sustainable and circular practices will have improved access to funding and also be incentivised to become even more sustainable.
6. Address the global dimension of water issues
Water is a cross-border challenge that requires cooperative action within the EU and beyond. The EU will introduce a Water Resilience Strategy and advocate for global water policies, for example, at the UN Water Conference 2025 in April and COP30 in Brazil in November.
The Water Efficiency First principle will be applied across all policy pillars, prioritising water-saving measures in areas of stress and promoting systematic water management. It aims to enhance water reuse and circularity in the EU, focusing on defining objectives, overcoming investment barriers, and strengthening innovation.
In the next section, discover how your business can proactively prepare for upcoming legislative proposals and ensure its needs are met.
Impact of the Water Resilience Strategy on businesses
As the Water Resilience Strategy evolves, businesses potentially affected by the legislation must begin preparing now. This Act could present both opportunities and challenges, including:
Implementation of legislation
A key aspect of the Water Resilience Strategy will be establishing a holistic framework that integrates water into EU industrial and competitiveness strategies across all sectors. This will involve both existing and new legislation, with a strong focus on the effective implementation of directives such as the Drinking Water Directive, Water Framework Directive, and Groundwater Directive. Businesses should take a proactive approach by assessing their compliance with these requirements to avoid any unexpected challenges.
Sector input
The Water Resilience Strategy proposal is scheduled for publication in Q2 2025, with input from key industries already influencing the draft. Once published, the strategy will outline essential water-related proposals, giving businesses a crucial opportunity to engage with the European Commission, provide feedback, and help shape future measures to align with their operational needs.
Transforming business models and encouraging water stewardship
The Water Resilience Strategy will impact nearly all sectors, particularly agriculture, manufacturing, and chemicals, which rely heavily on water. New regulations, guided by the Water Efficiency First principle, will emphasise reuse and circularity. Businesses may need to invest in water treatment technologies, increasing the usage of wastewater, AI-driven monitoring, and IoT-based real-time tracking to reduce water leakage and enhance efficiency. Assessing internal business operations and engaging early with policymakers and stakeholders will be crucial to shaping policies that align with business needs.
New funding opportunities
The European Commission is set to propose the new Multiannual Financial Framework (MFF) for 2028-2034 in June 2025. As expected, the new MFF will likely include a dedicated water component, offering increased funding for initiatives focused on sustainable water use and integrating sectors through the source-to-sea approach. For example, increasing funding opportunities for water-resilient projects and exploring innovative funding options based on lessons from renewable energy sectors. Companies could benefit from grants, low-interest loans, and tax incentives to invest in advanced water technologies and circular water systems.
Next steps
Water is a key priority for the European Commission in its new mandate, as demonstrated by the focus on the Water Resilience Strategy. With the proposal expected in Q2 2025, businesses must act now to stay ahead.
At Publyon, we help businesses anticipate and navigate evolving policies. Whether you need compliance guidance, strategies to influence EU decision-making, or insights on emerging opportunities, our team is here to support you.
With new regulations on water usage and sustainability approaching, now is the time to act! Early preparation ensures compliance, unlocks funding, and creates opportunities. Don’t wait – position your business for success today. Contact us via the form below to gain a competitive edge and make your voice heard in shaping EU regulations!
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