The European Investment Bank (EIB) will allocate €15 billion ($17 billion) over the next three years to projects aimed at reducing water pollution, preventing water waste, and supporting innovation in the water sector.
This investment forms part of the European Union’s broader strategy, also unveiled on Wednesday, to address water shortages and droughts that are being intensified by climate change, as well as growing demands on water resources from agriculture, pollution, and urban development.
Edouard Perard, head of the EIB’s water division, told Reuters that the funding will primarily take the form of loans issued between 2025 and 2027. The bank aims to attract an additional €25 billion from commercial investors.
The financing will support major infrastructure initiatives, projects that restore or utilize natural ecosystems to manage water resources, and the development of new water technologies.
“This is where water meets business,” Perard said. “It's by developing the technology of the future that we will be able to meet these water challenges.”
Data from the European Drought Observatory indicates that approximately 40% of Europe is currently under a drought warning, with 1.6% experiencing more severe "alert" conditions, including regions in Greece, Poland, and Italy.
The European Commission stated it would propose measures to enhance resilience to water stress, such as introducing minimum standards for water efficiency in data centres.
The EU estimates that an additional €23 billion per year is required to fully implement existing water regulations, which include limits on pollutants and requirements for wastewater treatment.
