Answer to a written question – Financing of innovative solutions in the water sector – E-001266/2025(ASW)

Source: European Parliament

As announced in the President’s political Political Guidelines 2024-2029[1] the Commission has adopted a Water Resilience Strategy[2]to ensure sources are properly managed, scarcity is addressed, and that we enhance the competitive innovative edge of our water industry and take a circular economy approach’. In this context, the strategy addressed the need to boost innovation and consider innovative financing solutions, including private investment.

In recent years, key pieces of EU water sector legislation[3] have entered into force regarding drinking water[4], urban wastewater[5] and water reuse[6].

These set ambitious requirements that necessitate innovative solutions, including treatment technologies, leakage management, energy management and circular water use. Innovations in these areas can further strengthen the competitive advantage of the EU water sector.

The Water Resilience Strategy includes a number of proposals to mobilise the necessary public and private financing. The Cohesion policy funds[7] recent mid-term review[8] proposed by the Commission provides exceptional incentives for investing in water including up to 100% EU financing for this purpose.

  • [1] https://commission.europa.eu/document/e6cd4328-673c-4e7a-8683-f63ffb2cf648_en.
  • [2] https://commission.europa.eu/topics/environment/water-resilience-strategy_en.
  • [3] https://environment.ec.europa.eu/topics/water_en.
  • [4] https://environment.ec.europa.eu/topics/water/drinking-water_en.
  • [5] https://environment.ec.europa.eu/topics/water/urban-wastewater_en.
  • [6] https://environment.ec.europa.eu/topics/water/water-reuse_en.
  • [7] https://ec.europa.eu/regional_policy/funding/cohesion-fund_en.
  • [8] https://ec.europa.eu/regional_policy/information-sources/publications/communications/2025/a-modernised-cohesion-policy-the-mid-term-review_en.
Last updated: 26 June 2025