The European Investment Bank (EIB) has announced a commitment to invest €15 billion ($17 billion) between 2025 and 2027 in projects aimed at reducing water pollution, curbing wastage, and supporting innovation in the water sector. The investment forms part of the European Union’s broader strategy to address increasing water stress linked to climate change, agricultural demand, and urban expansion.
The funding, primarily in the form of loans, is expected to mobilise an additional €25 billion from commercial investors, according to Edouard Perard, head of the EIB’s water division. Investments will target large-scale infrastructure projects, nature-based solutions to manage water supplies, and emerging water-related technologies.
“This is where water meets business,” Perard said. “Developing future-focused technologies is crucial to tackling water-related challenges.”
The initiative coincides with the European Commission’s unveiling of its water resilience strategy, which includes proposals to improve drought preparedness and resource efficiency. Nearly 40% of the EU is currently under drought warning, with 1.6% in alert conditions—particularly in Greece, Poland, and Italy—according to the European Drought Observatory.
EU Environment Commissioner Jessika Roswall underscored the urgency: “Water is not like any other resource. We face enormous pressure both within Europe and globally.”
The Commission said it would propose new measures to enhance resilience to water stress, including introducing minimum water-efficiency standards for data centres. However, earlier suggestions to provide new subsidies for farmers investing in water-saving technologies have been dropped from the final strategy.
The EU estimates that an additional €23 billion annually is needed to fully enforce its current water regulations, which cover pollutant controls and wastewater treatment.
