Sustainable water management in recovery and resilience plans

Summary:

The European Union's water policy contributes to the fact that most people living in the Union have good access to water services. Gaps remain, however, along with significant local and seasonal variability. There is also a need to address growing drought and flood risks. Since 2019, more than two thirds of EU Member States have received at least one reference to water management in their country-specific recommendations in the context of the European Semester. The EU's Recovery and Resilience Facility (RRF), which has a strong focus on the green transition, can be used to promote sustainable water management. Overall, the national recovery and resilience plans (NRRPs) of 15 Member States include investment and reform measures directly linked to this policy area, with a budget of at least €12.92 billion. Thus, the RRF is projected to double the funding (another €13 billion) devoted to water-related projects under cohesion policy up to 2027. Against the backdrop of a widening investment gap in sustainable water management across the EU (now estimated at €25.6 billion per year), the RRF is helping to address some of the challenges the EU and its Member States are facing in this policy area.

In absolute figures, Spain and Italy earmark the largest RRF allocations for sustainable water management, but other Member States such as Croatia, Cyprus and Slovenia also devote particular attention to this policy area in their NRRPs. The plans usually include a mix of reform and investment measures, with the former expected to improve the impact of the latter and the governance of the sector. The bulk of funding (72.3 %) goes to measures in water management and conservation of water resources (for example, rehabilitation of dams and projects to optimise the use of existing resources and establish or expand strategic reserves). The remainder is invested in 'Provision of water for human consumption compliant with efficiency criteria' (19.6 %), including reducing leaks, and in 'Waste water collection and treatment compliant with energy efficiency criteria' (8.1 %). As of 8 July 2024, the European Commission had assessed 17 % of the milestones and targets linked to sustainable water management in the NRRPs as having been achieved. The percentage of completion was much higher for reforms (41 %) than for investments (11 %); the frontloading of reform measures in many plans is one factor contributing to this difference. Member States must meet milestones and targets by 31 August 2026 in order to receive the related funding.

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