Making  investment in water infrastructure bankable

Water forms the foundation of all natural systems. Its unique physical properties make it irreplaceable for energy transfer and ecosystem regulation—earning it the designation as “the bloodstream of the biosphere.” Beyond its ecological role, water is essential for human health and economic prosperity.

To secure reliable access to this vital resource, humanity has developed infrastructure with three core functions: storage, transport, and treatment. Water infrastructure is characteristically capital-intensive and long-lived, with high upfront costs that cannot be easily recovered if projects fail. In Europe, the Water Framework Directive 2000/60/EC makes a distinction between services and uses.

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Water resilience: need for a new management paradigm?

In the political guidelines for the next European Commission 2024-25 released on 18 July 2024 (link), Mrs. Von der Leyen emphasized the importance of water. She stated that the upcoming European Climate Adaptation Plan must support a Water Resilience Strategy to ensure pollution sources are properly managed and scarcity is addressed. This strategy aims to enhance the competitive innovative edge of its water industry and adopt a circular economy approach. As part of this, Europe will lead efforts to mitigate and prevent acute water stress globally.

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