Water has emerged as a defining resource for Europe’s economic prosperity and climate resilience. After years of compounding droughts, floods, and shifting weather patterns, Europe stands at a pivotal moment.
While water scarcity and uncertainty present real challenges to growth, financial stability, and social well-being, this inflexion point also offers a powerful opportunity to rethink how we value and manage water —unlocking new pathways toward resilience and innovation.
Natural ecosystems, especially freshwater resources, have suffered from decades of over-extraction, pollution, invasive species, and climate change. The mounting impacts are slowing economic activity and exposing systemic vulnerabilities. The stakes are considerable: Europe’s freshwater ecosystems underpin more than €11 trillion in value, 2.5 times Germany’s GDP. Surface water scarcity alone endangers nearly 15% of the euro area’s economic output, a stark reminder that water security is not a distant environmental concern but a core economic issue.
Recognising this urgency, the European Commission unveiled its Water Resilience Strategy in June 2025. The strategy places water at the heart of the EU’s agenda for climate and economic adaptation.
The Water Resilience Strategy provides a credible roadmap, but its success hinges on determined leadership from European industry
The Strategy’s framework rests on three pillars: restoring and protecting the water cycle, building a water-smart economy to boost competitiveness, attract investment, and promote innovation in the water sector and securing clean and affordable water and sanitation for all.
To achieve these objectives, the Commission proposes accelerating the roll-out of water-saving technologies, expanding water reuse, piloting closed-loop industrial solutions, and fostering innovation through a new Water Smart Industrial Alliance. The plan earmarks €15 billion in investment and prioritises advanced digital solutions to guide decision-making.
Europe’s industrial sector, responsible for nearly half of all freshwater withdrawals, stands both as a major stakeholder and as a principal agent of change. The opportunity for industry extends beyond risk mitigation. Intelligent water management is now a lever for growth, profitability, and competitiveness, while also enhancing societal well-being and environmental stewardship.
For over a third of Europe, the imbalance between water supply and demand is so severe that efficiency improvements alone are no longer enough. Restoring water sustainability requires a fundamental shift in mindset—one that acknowledges water as a finite, shared, and local resource. This requires purposeful collaboration among local stakeholders and communities who must jointly define and commit to new sustainability thresholds. Clear, actionable targets and a shared sense of responsibility will be essential to drive meaningful change and secure water resilience for the future.
A key obstacle to water resilience remains the lack of a transparent, coherent process for defining and measuring sustainable water use. This data deficit creates uncertainty for businesses and investors, hindering the very investments needed to secure Europe’s water future. Water must now be treated with the same strategic clarity applied to energy supply or other critical inputs across the manufacturing supply chain.
Incremental change will not suffice. The Water Resilience Strategy provides a credible roadmap, but its success hinges on determined leadership from European industry. By placing water at the centre of strategic planning and risk management, companies can secure their operations, support community resilience, and contribute to a robust, sustainable Europe. The challenge is significant, but so too is the opportunity: to ensure that water remains a pillar of Europe’s economic strength and security for generations to come.