# IMMC.EESC-2023-01154-AC.ENG.xhtml.EESC-2023-01154-00-00-AC-TRA-EN.docx

| OPINION |
| --- |
| European Economic and Social Committee |
| Water-intensive industries and water-efficient technologies |
| _____________ |
| Water-intensive industries and water-efficient technologies

  (Own-initiative opinion) |
| |
| CCMI/208 |
| |
| Rapporteur: Paul RÜBIG |
| Co-rapporteur: John BRYAN |

OPINION

European Economic and Social Committee

Water-intensive industries and water-efficient technologies

_____________

Water-intensive industries and water-efficient technologies

  (Own-initiative opinion)

CCMI/208

Rapporteur: Paul RÜBIG

Co-rapporteur: John BRYAN

EN

Plenary Assembly decision

| Plenary Assembly decision | 25/01/2023 |
| --- | --- |
| Legal basis | Rule 52(2) of the Rules of Procedure |
| | Own-initiative opinion |
| Section responsible | Consultative Commission on Industrial Change |
| Adopted in section | 22/06/2023 |
| Adopted at plenary | 13/07/2023 |
| Plenary session No | 580 |
| Outcome of vote
  (for/against/abstentions) | 200/0/3 |

Plenary Assembly decision

25/01/2023

25/01/2023

Legal basis

Legal basis

Rule 52(2) of the Rules of Procedure

Rule 52(2) of the Rules of Procedure

Own-initiative opinion

Own-initiative opinion

Section responsible

Section responsible

Consultative Commission on Industrial Change

Consultative Commission on Industrial Change

Adopted in section

Adopted in section

22/06/2023

22/06/2023

Adopted at plenary

Adopted at plenary

13/07/2023

13/07/2023

Plenary session No

Plenary session No

580

580

Outcome of vote
  (for/against/abstentions)

Outcome of vote
  (for/against/abstentions)

200/0/3

200/0/3

1.Conclusions and recommendations

1.

Conclusions and recommendations

1.1As part of the EU Blue Deal, the EU urgently needs to develop a new EU water policy, including a comprehensive sustainable water management policy for industry based on reducing, reusing and recycling water, decreasing water pollution and including a focus on water-intensive industries and the incremental introduction and use of water-efficient technologies. Given the energy-water-Critical Raw Materials nexus, the water policy should become one of the pillars of EU Industrial strategy.

1.1

As part of the EU Blue Deal, the EU urgently needs to develop a new EU water policy, including a comprehensive sustainable water management policy for industry based on reducing, reusing and recycling water, decreasing water pollution and including a focus on water-intensive industries and the incremental introduction and use of water-efficient technologies. Given the energy-water-Critical Raw Materials nexus, the water policy should become one of the pillars of EU Industrial strategy.

1.2The EU therefore needs a roadmap supporting industries in becoming water efficient in an incremental manner, with milestones and a sectoral approach, fully taking into account the energy-water-Critical Raw Materials nexus. This requires a revision of the EU Industrial Strategy and its transition pathway documents within the next two years. This sectoral approach should embed the water efficiency characteristics and water challenges specific to each sector and be based on a foresight approach with options, impact and risk assessment with life-cycle cost analysis.

1.2

The EU therefore needs a roadmap supporting industries in becoming water efficient in an incremental manner, with milestones and a sectoral approach, fully taking into account the energy-water-Critical Raw Materials nexus. This requires a revision of the EU Industrial Strategy and its transition pathway documents within the next two years. This sectoral approach should embed the water efficiency characteristics and water challenges specific to each sector and be based on a foresight approach with options, impact and risk assessment with life-cycle cost analysis.

1.3In view of developing the emerging sector of water-efficient technologies, a field in which the EU could play a prominent role, a comprehensive EU water policy must go hand in hand with an ambitious EU funding plan to enable industry to make the essential investments in water-efficient technologies. Positive funding incentives such as tax credits, higher depreciation rates and other mechanisms should be adopted. Innovative means of financing such as crowdfunding to complement public support could be considered.

1.3

In view of developing the emerging sector of water-efficient technologies, a field in which the EU could play a prominent role, a comprehensive EU water policy must go hand in hand with an ambitious EU funding plan to enable industry to make the essential investments in water-efficient technologies. Positive funding incentives such as tax credits, higher depreciation rates and other mechanisms should be adopted. Innovative means of financing such as crowdfunding to complement public support could be considered.

1.4The EU needs to become the world leader in the development, manufacturing and use of water‐efficient technologies and establish a global reputation as a low-water-footprint production area. Water-efficient technologies constitute an industrial sector that is part of clean technologies. As such, water-efficient technologies should also be energy efficient. As clean tech constitutes an industrial eco-system on its own, the EESC suggests the creation within the next two years of a transition pathway for this ecosystem , with ambitious but realistic targets, including a plan for stewardship and skills.

1.4

The EU needs to become the world leader in the development, manufacturing and use of water‐efficient technologies and establish a global reputation as a low-water-footprint production area. Water-efficient technologies constitute an industrial sector that is part of clean technologies. As such, water-efficient technologies should also be energy efficient. As clean tech constitutes an industrial eco-system on its own, the EESC suggests the creation within the next two years of a transition pathway for this ecosystem , with ambitious but realistic targets, including a plan for stewardship and skills.

1.5Greater focus is needed on water consumption, recycling and capture efforts in approval processes for new industrial installations and on incentive systems for water-saving projects at existing plants. However, different industries have different water use needs and different opportunities to become water efficient. The no-harm principle has to be combined with a right for economic activities to consume water and coupled with industrial commitment to incrementally improve water-efficiency through a water-efficiency roadmap.

1.5

Greater focus is needed on water consumption, recycling and capture efforts in approval processes for new industrial installations and on incentive systems for water-saving projects at existing plants. However, different industries have different water use needs and different opportunities to become water efficient. The no-harm principle has to be combined with a right for economic activities to consume water and coupled with industrial commitment to incrementally improve water-efficiency through a water-efficiency roadmap.

1.6Water demand, consumption and storage need to be given much higher priority in EU strategies for economic development of industrial sectors. The EESC stresses the key role of water in circular economy.

1.6

Water demand, consumption and storage need to be given much higher priority in EU strategies for economic development of industrial sectors. The EESC stresses the key role of water in circular economy.

1.7As water use varies across the EU and across sectors, there is a need to record and report industrial water use data in all Member States and to map existing technologies. There is also a need to collect this data at plant level, as this is the first step in implementing water-efficient processes. Industrial property rights need to be aligned with applicable data transparency requirements.

1.7

As water use varies across the EU and across sectors, there is a need to record and report industrial water use data in all Member States and to map existing technologies. There is also a need to collect this data at plant level, as this is the first step in implementing water-efficient processes. Industrial property rights need to be aligned with applicable data transparency requirements.

1.8The EU should consider establishing a Blue Deal Platform for industry and agriculture representatives and citizens to maximise consultation and buy-in with regard to the process of developing a new water policy. This standing consultation should in particular ease the removal of legislative obstacles to the uptake of water-efficient technologies in industrial and agricultural processes and by households and contribute to a regular update of the action plans to be put in place – such as the transition pathways for industry.

2.Introduction and general comments

2.1In general, water resources per inhabitant are comparably high in Europe, but with essential differences between Northern/Central Europe and southern regions, driven mainly by the effects of climatic factors on water resources. Some of the main challenges concerning water cycles include: 1) longer periods of drought followed by heavy rainfall and floods, both limiting access to clean and useable water; 2) increasing water consumption as a consequence of a growing or more concentrated population and economic development as well as increasing water demand for industrial, agricultural and private water use; and 3) increasing pollution of water sources due to lack of treatment of effluents. A wide range of new pollutants such as microplastics, pharmaceutical substances, etc. are entering water sources, and are, to some extent, only identified once they have accumulated in harmful amounts. Measures have to be identified, addressed and implemented to tackle these three main areas of challenges.

2.2Water stress is a major and growing concern in Europe. According to the European Environment Agency (EEA), about 20% of the European territory and 30% of Europeans are affected by water stress during an average year
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  . Unsustainable use of water is the withdrawal of water from natural resources at a rate faster than it can be replenished by nature. About 60% of large (over 100 000 inhabitants) European cities have 140 million people living in or near areas of such groundwater over-exploitation
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  . An essential factor is the negative impact on the water supply by phases of flooding caused by climate-related heavy rain (big cities very often depend on groundwater sources fed by rivers).

2.3In many Southern European regions, during periods of drought choices need to be made between maintaining industrial water use, agriculture and water use for households. In some areas there is a risk of displacing industries from water-stressed areas, leading to loss of employment and destabilising economies and industrial changes.

2.4EU water policy has tended to concentrate on the legal framework for water protection and management, focusing on pollution and prevention. The main existing EU water policies impacting on industry include the Water Framework Directive, the Urban Waste Water Treatment Directive, the Industrial Emissions Directive and the Zero Pollution Action Plan as part of the EU Green Deal. However, the water dimension is barely mentioned in EU industrial transitional pathways or in the European Commission's Strategic Foresight report 2022.

2.5The EU's vision for a green and digital transition of industry and its ecosystems makes no reference to water. The European Commission's Communication on the Green Deal Industrial Plan
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  mentions water supply and sewerage as key sectors for the green transition in a footnote, but no further references to water are included in the document. The EU needs to address water policy with the same determination with which it has tackled the climate crisis.

3.Need for integrating water in EU industrial policy while adopting a sectoral approach

3.1Water policy and water management are operated very differently across many EU Member States, creating significant difficulties for citizens and industries. With 60% of EU surface water being cross-border, a common EU policy for water must be considered.

3.2In March 2023 the European Council adopted the following conclusion: "The European Council welcomes the UN 2023 Water Conference and its Water Action Agenda. It acknowledges the need for enhanced EU and global action on water and underlines the importance of a strategic EU approach to water security"
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  .

3.3The EU needs to put forward a comprehensive Sustainable Water Management Policy for Industry based on reducing, recovering, reusing and recycling, including a focus on water-intensive industries and the use of water-efficient technologies. The cascading hierarchy of water must have priority.

3.4All industries rely on water. Industry represents approximately 40% of total water abstractions in Europe
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  . The main water-intensive industries in the EU include mining and quarrying, manufacturing, electricity production, construction, chemicals, agriculture, food and beverage production, textiles, paper and pulp, pharma, ICT including datacentres, the automotive industry, steel, fertilisers and transport. However, data on water abstractions and use in the EU is historical and poor. An EU industrial water strategy needs to be based on data collected at EU level, involving Eurostat, to allow for a broad and comprehensive overview. There is also a need to collect this data at plant level, as this is the first step in implementing water-efficient processes. Furthermore, the World Meteorological Organisation WMO is working on an interoperability Platform for a global data warehouse.

3.5There is a clear need for an integrated EU approach to water policies that includes better coordination of the many legislative requirements stemming from several sectors and uses, including the industrial sectors. In addition, much more political ambition is needed to improve water efficiency and reduce water pollution and consumption within European industries, notably through the incremental introduction of water-efficient technologies. However, a sectoral approach is needed, since the possibility to become more water efficient varies a lot across sectors, depending on the existence of adapted water-efficient technologies.

3.6Regarding the different industrial sectors, a thorough analysis needs to be carried out at European level to establish benchmarks, guidelines and reporting systems for the future sustainable development of water cycles. It should be acknowledged that some resources addressing industrial water cycles directly or indirectly already exist at EU level, such as the 2021 study on Circular Economy Perspectives in the EU Textile Sector
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  , but more efforts are needed to cover the different industrial sectors concerned. The EESC calls for a revision of the industrial transitional pathways within the next two years to include the water-efficient dimension and an ambitious but realistic roadmap to incrementally become more water efficient.

3.7Greater focus is needed on water consumption and water recycling efforts in approval processes for new industrial installations and on incentive systems for water-saving projects at existing plants. However, different industries have different needs regarding water use and different opportunities/possibilities to become water efficient. The no-harm principle has to be combined with a right for economic activities to consume water. This right should be acknowledged and provided the industrial installation commitment to incrementally improve its water-efficiency through a water-efficiency roadmap, measured by the industrial benchmark.

3.8Industries will increasingly be facing pressure to reduce their environmental impact and improve water resource efficiency, including both direct and indirect water usage. As is the case with decarbonisation and energy, many industries face the need for large-scale investments to make their production processes and value chains more water efficient and to reduce their impact on water quality.

3.9In the process of moving to a carbon-neutral and energy- and water-efficient society, it is essential that industries operating in the EU remain competitive and do not lose out to other areas of the world where less responsible and restrictive policies are adopted, thereby eroding production, output and employment in the EU without making progress on the water front at global level. We need to protect future water-conscious EU made products and services from less water-efficient imports.

4.Water-efficient technologies enabling sustainable water management

4.1The successful adoption of water-efficient technologies in industry and across other areas is essential to the success of a sustainable EU water policy. These technologies have the potential to significantly reduce water use and promote reuse and recycling, as well as improving water quality and minimising waste water discharge. The security of volatile water supply should be increased through well-designed water retention systems (rain and flood).

4.2Several water-efficient technologies already exist. Some of the main technologies currently in use in industry include: water recycling and reuse – treatment and reuse of wastewater in industrial operations, reducing the demand for fresh water; assessing and optimising industrial processes to reduce water use and minimise waste; application of a reverse osmosis stage instead of an ion-exchange stage for boiler feed water to reduce salt load in the disposal of regeneration wastewater; membrane filtration – removing impurities from water allowing it to be reused for industrial purposes; sewage and wastewater mining; low flow fixtures – reducing water use in buildings by installing water efficient faucets, showerheads and toilets; drip irrigation and precision agriculture – minimising water use in agriculture and optimising crop yields; anaerobic wastewater treatment (biological gas production in absence of oxygen for energy-production – using microorganisms to breakdown pollutants in wastewater producing effluent that can be reused); collecting and storing rainwater for use in irrigation, cleaning or other non-potable uses; closed loop systems – minimising water use and waste by recycling process water within an industrial process; material substitution – using alternative materials that require less water for production and have a lower water footprint.

4.3Many industries already use water-efficient technologies. For instance, looking at the dairy industry, a good example is Ireland, where dairy exports are worth EUR 6.8 billion from 11 billion litres of milk processed annually. Ireland's largest farmer-owned dairy cooperative, Tirlan, extracts about 11 000m3 of water per day from the local river and boreholes at its largest processing plant in Ballyragget, Co. Kilkenny. However, due to the processing and the water treatment technologies, the plant actually returns around 14 500m3 of clean water every day to the local Nore river, which is a Special Area of Conservation. This means the dairy plant regenerates approximately an extra 30% of clean water back into the local river. This returned water is of such good quality that over time it has helped to improve the quality of the river and has helped maintain the river's status as an SAC & SPA. There has been significant investment in the wastewater treatment plant (WWTP) and appropriate technologies.

4.4The textiles industry, although dominated by Asian production, employs more than 1.6 million people in the EU. The sector has a big impact on water resources. Textiles contain many potential pollutants which enter the water cycle in the use phase of textiles and therefore need to be addressed with a strong regulatory framework. These include micro parts of fibres, waterproofing agents/chemicals and textile colours. Furthermore, it can be anticipated that water-scarcity in the countries of production will increasingly have an impact on costs and limitations on capacities. There is a need to understand value chains and material flows in Europe and worldwide. There are also upcoming challenges and obligations concerning the collection and processing of post-consumer textiles.

4.5Building on the EU strategy for sustainable textiles, the regulatory framework of water-relevant aspects of the circular economy should be developed in more detail at an early stage. The strategy states the need to develop a circular economy but does not explicitly address the need for water resources. However, there is no doubt that applying the circular economy principles in the textile industry will require high amounts of water. The identification of needs for R&D and education related to the water cycle, along with respective government funding is crucial. Targets and limits also need to be defined for freshwater demand, which should be minimised with process optimisation (recycling). Furthermore, the EU should consider establishing a roadmap to incrementally move towards a zero discharge target, at least addressing the range of potential pollution contents.

4.6Another example is the paper industry, which has shown high potential for measures aiming to minimise or even avoid negative impacts on water sources. The paper industry in Europe already has a comparably good standard for water use
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  , but there is room for further improvement. This can be achieved by stepping up the implementation of water reuse processes, implementing the newest treatment technologies and setting a potential target of close to zero discharge in an ambitious but realistic timeframe. Governmental support for development and innovation for the paper industry in Europe and measures to optimise water use can lead to an economic advantage. For instance, the know-how in optimising water use in the paper industry is already an economic factor for European machinery production, and the solutions retained have been implemented in other sectors. In other parts of the world, large paper plant sites have had to close down due to their extremely negative impact on water in the surrounding area.

4.7Water Industries (water works and WWTP's) should be climate and energy neutral (or even positive) and cyber secure critical infrastructure. Good examples exist in Europe and all over the world. On the other hand, regions with very low water resources have a lot of potential for improvement (management, desalinisation, water circularity, efficiency).

4.8In a similar move to the climate and energy challenge initiated in most EU countries involving insulation and retrofitting requirements for buildings, a policy on the collection and reuse of water in all new buildings should be introduced. For industry, a policy on the use of grey water for non-potable use must be developed. For instance, the Joint Research Centre (JRC) has developed technical guidelines for the application of key risk management principles for the assessment and management of health and environmental risks linked to a water reuse system
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  . However, more systematic applications of existing and new technologies are needed and should be implemented considering the full cycle of water.

4.9The EU needs to become the world leader in the development, manufacturing and use of water-efficient technologies and establish a global reputation as a low-water-footprint production area. Investment in research and development and water industry stewardship and skills will be essential. New professions and trained workers specialised in water will be required to support know-how and implementation of new water-use technologies, including the use of AI in this field. The EU can lead in blue production and in the industrial water treatment market focusing on creating new highly skilled jobs in Europe. Know-how related to water-saving processes will be a core competence and a key performance indicator (KPI) for industry in the future. Water-efficient technologies constitute an industrial sector that is part of clean technologies. As clean tech constitutes an eco-system on its own, the EESC suggests the creation of a transition pathway for this ecosystem in the next two years, with ambitious but realistic targets, including a plan for skills.

4.10Consultation and involvement of industry leaders and representatives is essential to the formulation of a sustainable EU water policy. In addition, EU citizens' buy-in into water policy is essential. In many sectors, national legislation does not allow for water reuse, thus preventing the circular economy process. To overcome this, the EU needs to introduce minimum requirements for water quality and monitoring. To this end, a Blue Deal Platform for EU industry and agriculture representatives and citizens could be established where ideas and issues concerning water sharing, uses and project innovation could be exchanged. The platform could incorporate structures from local, regional, national and EU levels. The aim of this EU Blue Deal Platform would be to help the EU and Member States take the necessary political decisions on water policy as quickly as possible. It is also important to step up the water dialogue with local and national institutions in order to encourage action-focused and structured awareness, information and education on the strategic importance of water as a scarce resource. This standing consultation could also ease the removal of legislative obstacles to the uptake of water-efficient technologies in industrial and agriculture processes and by households.

4.11A comprehensive EU water policy must be matched with an equally ambitious EU funding plan to enable industry and municipal authorities to make the essential investment in water-efficient technologies. Positive funding incentives such as tax credits, higher depreciation rates and other mechanisms should be introduced. The green finance tools and mechanism (e.g. ESG and Taxonomy) needs to be complemented by more and deeper water use dimensions.

Brussels, 13 July 2023.

Oliver Röpke

The president of the European Economic and Social Committee

_____________

https://www.eea.europa.eu/publications/92-9167-025-1/page003.html
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