# C_2023349EN.01005001.xml

| 29.9.2023 | EN | Official Journal of the European Union | C 349/50 |
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29.9.2023

EN

Official Journal of the European Union

C 349/50

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Opinion of the European Economic and Social Committee on the economics of an ‘EU Blue Deal’ — water-related investment needs in the EU

(own-initiative opinion)

(2023/C 349/09)

| Rapporteur: | Florian MARIN |
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Rapporteur:

Florian MARIN

Florian MARIN

| Plenary Assembly decision | 25.1.2023 |
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| Legal basis | Rule 52(2) of the Rules of Procedure |
| | Own-initiative opinion |
| Section responsible | Economic and Monetary Union and Economic and Social Cohesion |
| Adopted in section | 27.6.2023 |
| Adopted at plenary | 13.7.2023 |
| Plenary session No | 580 |
| Outcome of vote
  (for/against/abstentions) | 181/6/5 |

Plenary Assembly decision

25.1.2023

Legal basis

Rule 52(2) of the Rules of Procedure

Own-initiative opinion

Section responsible

Economic and Monetary Union and Economic and Social Cohesion

Adopted in section

27.6.2023

Adopted at plenary

13.7.2023

Plenary session No

580

Outcome of vote

(for/against/abstentions)

181/6/5

1.   Conclusions and recommendations

Conclusions and recommendations

| 1.1. | The Committee considers access to safe, clean and quality water a fundamental right and finds it totally unacceptable that there are still people who have no access to water in the EU. |
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1.1.

The Committee considers access to safe, clean and quality water a fundamental right and finds it totally unacceptable that there are still people who have no access to water in the EU.

| 1.2. | Water economy development in the EU should be inclusive, well-regulated, transparent, highly digitalised, resilient, sustainable, predictable and secure, putting people first and generating added value. It is essential for all industries to bear the societal cost of their water consumption in a fair way. |
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1.2.

Water economy development in the EU should be inclusive, well-regulated, transparent, highly digitalised, resilient, sustainable, predictable and secure, putting people first and generating added value. It is essential for all industries to bear the societal cost of their water consumption in a fair way.

| 1.3. | The Committee urges the EU institutions to accord equal significance and focus to the EU Blue Deal as it did to the EU Green Deal, with both being fully complementary. |
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1.3.

The Committee urges the EU institutions to accord equal significance and focus to the EU Blue Deal as it did to the EU Green Deal, with both being fully complementary.

| 1.4. | The future regulatory framework of the EU Blue Economy has to:






  — | be based on the principle of a wellbeing economy; |
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1.4.

The future regulatory framework of the EU Blue Economy has to:

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be based on the principle of a wellbeing economy;

| — | transversally integrate social conditionalities and territorial solidarity; |
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transversally integrate social conditionalities and territorial solidarity;

| — | strike a balance between environmental, social and economic concerns; |
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strike a balance between environmental, social and economic concerns;

| — | benefit from transnational innovative governance models that encourage financing, regulate the involvement of the private sector, improve the management of water resources and stimulate EU competitiveness; |
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benefit from transnational innovative governance models that encourage financing, regulate the involvement of the private sector, improve the management of water resources and stimulate EU competitiveness;

| — | adopt collaborative business models and shared economy principles; |
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adopt collaborative business models and shared economy principles;

| — | adopt an institutional framework that will not burden the competitiveness of EU economic activities in the global market; |
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adopt an institutional framework that will not burden the competitiveness of EU economic activities in the global market;

| — | offer greater transparency regarding sustainability initiatives. |
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—

offer greater transparency regarding sustainability initiatives.

| 1.5. | The EESC is calling for:






  — | a shift in the current economic model towards a more sustainable one that taxes overconsumption and is fully consistent with the Sustainable Development Goals (SDGs); |
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1.5.

The EESC is calling for:

—

a shift in the current economic model towards a more sustainable one that taxes overconsumption and is fully consistent with the Sustainable Development Goals (SDGs);

| — | water prices across Member States to be evaluated in accordance with the ‘polluter pays principle’; |
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—

water prices across Member States to be evaluated in accordance with the ‘polluter pays principle’;

| — | adapting basic economic concepts such as market rules, economic viability or productivity to take into account the multilateral values of water; |
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—

adapting basic economic concepts such as market rules, economic viability or productivity to take into account the multilateral values of water;

| — | coherent legislation in all Member States on an EU mechanism for storing water during wet periods; |
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—

coherent legislation in all Member States on an EU mechanism for storing water during wet periods;

| — | a long-term strategy to increase resilience against water scarcity; |
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—

a long-term strategy to increase resilience against water scarcity;

| — | the Extended Producer Responsibility (EPR) to be extended to residual water management; |
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the Extended Producer Responsibility (EPR) to be extended to residual water management;

| — | addressing the issue of non-revenue water (NRW) (1) by prioritising ongoing maintenance; initiatives aimed at significantly reducing water leakages and research for new technologies for leakage detection; |
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—

addressing the issue of non-revenue water (NRW) (1) by prioritising ongoing maintenance; initiatives aimed at significantly reducing water leakages and research for new technologies for leakage detection;

1

| — | thorough and immediate evaluation of the underground sewer systems in all Member States, including centralising data at EU level; |
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thorough and immediate evaluation of the underground sewer systems in all Member States, including centralising data at EU level;

| — | adaptation of the State aid rules to the characteristics of water investment; |
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adaptation of the State aid rules to the characteristics of water investment;

| — | prices that take long-term water security into account; |
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prices that take long-term water security into account;

| — | investments in working conditions, quality jobs and training and specific activities in this field, especially targeting the younger generation. |
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investments in working conditions, quality jobs and training and specific activities in this field, especially targeting the younger generation.

| 1.6. | Acknowledging that achieving progress towards climate-neutral industries should also consider industrial emissions into water, the adverse impacts on human health, and the resulting social costs for society, the EESC calls for the development of specific standards on water usage in different economic sectors, such as agriculture or industry. This can be accomplished by establishing an expert group tasked with creating sector-specific guidelines for water use. |
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1.6.

Acknowledging that achieving progress towards climate-neutral industries should also consider industrial emissions into water, the adverse impacts on human health, and the resulting social costs for society, the EESC calls for the development of specific standards on water usage in different economic sectors, such as agriculture or industry. This can be accomplished by establishing an expert group tasked with creating sector-specific guidelines for water use.

| 1.7. | The EESC is proposing:






  — | to develop an EU Blue Deal and an EU Water Agenda in close synergy with the EU Urban Agenda (2), the Ljubljana Agreement (3) and the Long-Term Vision for Rural Areas (4); |
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1.7.

The EESC is proposing:

—

to develop an EU Blue Deal and an EU Water Agenda in close synergy with the EU Urban Agenda (2), the Ljubljana Agreement (3) and the Long-Term Vision for Rural Areas (4);

2

3

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| — | a rationalisation of water consumption through the implementation of the following measures: |
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a rationalisation of water consumption through the implementation of the following measures:

| — | price differentiation between consumption for domestic use and essential public services, and consumption for productive use; |
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price differentiation between consumption for domestic use and essential public services, and consumption for productive use;

| — | a pricing system that effectively discourages unsustainable consumption while incentivising consumption for productive purposes; |
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a pricing system that effectively discourages unsustainable consumption while incentivising consumption for productive purposes;

| — | that the design of the price include a minimum requirement of free water to ensure human rights; |
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—

that the design of the price include a minimum requirement of free water to ensure human rights;

| — | to ensure full transparency of the costs and price of water towards all stakeholders; |
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—

to ensure full transparency of the costs and price of water towards all stakeholders;

| — | public planning exclusively at a river basin level (including underground water) in such a way that the EU general interest is protected and ensuring that the required ecological water flow is maintained at the originating body of water; |
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public planning exclusively at a river basin level (including underground water) in such a way that the EU general interest is protected and ensuring that the required ecological water flow is maintained at the originating body of water;

| — | to adopt and strengthen regulatory frameworks on water concession agreements to manage water as a public good, more than as a commodity that can be traded. Prices for the population should reflect that water is a public good; |
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to adopt and strengthen regulatory frameworks on water concession agreements to manage water as a public good, more than as a commodity that can be traded. Prices for the population should reflect that water is a public good;

| — | to dedicate specific attention and financing to cross-border water projects; |
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to dedicate specific attention and financing to cross-border water projects;

| — | exchange of significant water-related innovations among Member States and encouraging bottom-up experimentation taking into account the specificity and complexity of water. |
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exchange of significant water-related innovations among Member States and encouraging bottom-up experimentation taking into account the specificity and complexity of water.

| 1.8. | The Committee considers EU funds vital for sustainable transition of water and is calling for:






  — | Member States to treat water investment as a high priority in reallocations within the various programmes; |
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1.8.

The Committee considers EU funds vital for sustainable transition of water and is calling for:

—

Member States to treat water investment as a high priority in reallocations within the various programmes;

| — | increased complementarity between European Structural and Investment Funds (ESIF) (5), the Recovery and Resilience Facility, InvestEU, Interreg Europe and other funds; |
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—

increased complementarity between European Structural and Investment Funds (ESIF) (5), the Recovery and Resilience Facility, InvestEU, Interreg Europe and other funds;

5

| — | a dedicated call for proposals and guidelines that take the complexity and specificity of water into account; |
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a dedicated call for proposals and guidelines that take the complexity and specificity of water into account;

| — | a dedicated operational programme for water and for Integrated Territorial Investments (ITI) for the blue economy; |
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a dedicated operational programme for water and for Integrated Territorial Investments (ITI) for the blue economy;

| — | water sectors to be recognised as a strategic priority in the 2028–2034 programming period and, where relevant, a dedicated operational programme for water; |
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water sectors to be recognised as a strategic priority in the 2028–2034 programming period and, where relevant, a dedicated operational programme for water;

| — | a Blue Transition Fund; |
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a Blue Transition Fund;

| — | assuring technical assistance for Member States to implement water projects. |
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—

assuring technical assistance for Member States to implement water projects.

| 1.9. | The Committee considers it crucial to incorporate resilience into water-related investment evaluation criteria, as it can reduce the expenses associated with recovery from unpredictable events, when paired with optimal investments in risk-reduction measures. |
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1.9.

The Committee considers it crucial to incorporate resilience into water-related investment evaluation criteria, as it can reduce the expenses associated with recovery from unpredictable events, when paired with optimal investments in risk-reduction measures.

| 1.10. | Efficient coordination and complementarity should exist between the European Commission, European Investment Bank (EIB) and European Bank for Reconstruction and Development (EBRD) in terms of financing water investments alongside common Key performance indicators (KPIs) within the EU strategic framework. |
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1.10.

Efficient coordination and complementarity should exist between the European Commission, European Investment Bank (EIB) and European Bank for Reconstruction and Development (EBRD) in terms of financing water investments alongside common Key performance indicators (KPIs) within the EU strategic framework.

2.   Policy and strategic framework

Policy and strategic framework

| 2.1. | Water economy development should be inclusive, well-regulated and transparent, while taking into account the many differences across regions and communities. It should also be highly digitalised, resilient, sustainable, predictable and secure, ensuring complementarity across industrial sectors and actors, putting people first, protecting life and generating added value through a tailored approach in a sustainable and fair ecosystem. |
| --- | --- |

2.1.

Water economy development should be inclusive, well-regulated and transparent, while taking into account the many differences across regions and communities. It should also be highly digitalised, resilient, sustainable, predictable and secure, ensuring complementarity across industrial sectors and actors, putting people first, protecting life and generating added value through a tailored approach in a sustainable and fair ecosystem.

| 2.2. | The EESC highlights the importance of new perspectives on policy frameworks, institutional arrangements and investment planning, including greater transparency regarding sustainability initiatives and the creation of precise guidelines and classifications for sustainable and innovative investments. Since the sustainable use and protection of water and marine resources is one of the six environmental objectives established in the Taxonomy Regulation (6), specific delegated act for sustainable use of water are needed (green labels, ecosystem restoration). The EESC highlights the EU’s shared values pertaining to services of general economic interest, as defined in Article 14 of the Treaty on the Functioning of the European Union (TFEU), and outlined in Protocol No 26 on services of general interest attached to the Treaty on European Union (TEU) and the TFEU (7). |
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2.2.

The EESC highlights the importance of new perspectives on policy frameworks, institutional arrangements and investment planning, including greater transparency regarding sustainability initiatives and the creation of precise guidelines and classifications for sustainable and innovative investments. Since the sustainable use and protection of water and marine resources is one of the six environmental objectives established in the Taxonomy Regulation (6

7

| 2.3. | The specificity of water requires the water economy to be regulated with full respect for human dignity and rights, transversally integrating social conditionalities, equitability and basic human and societal needs. The EESC calls for an adapted judicial system for the water sector, built in cooperation with international organisations, with fast procedures to deal with water-related disputes. Dedicated supranational and multisectoral monitoring structures and governance bodies should be established for more efficient and appropriate control of businesses in the water sector and water use in general. The role of the public sector in water management should be increased, when the market is incapable of guaranteeing fair access to water for everyone. |
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2.3.

The specificity of water requires the water economy to be regulated with full respect for human dignity and rights, transversally integrating social conditionalities, equitability and basic human and societal needs. The EESC calls for an adapted judicial system for the water sector, built in cooperation with international organisations, with fast procedures to deal with water-related disputes. Dedicated supranational and multisectoral monitoring structures and governance bodies should be established for more efficient and appropriate control of businesses in the water sector and water use in general. The role of the public sector in water management should be increased, when the market is incapable of guaranteeing fair access to water for everyone.

| 2.4. | The EESC concludes that specific institutions in all Member States should be established with the goal to ensure that informed decisions are made regarding water use and that water is used responsibly and efficiently. In order for citizens to fully exercise democratic control, it is necessary to ensure that citizens know the water cycle and its price. The Committee calls for the EU Blue Deal to have the same level of importance and attention as the EU Green Deal did. |
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2.4.

The EESC concludes that specific institutions in all Member States should be established with the goal to ensure that informed decisions are made regarding water use and that water is used responsibly and efficiently. In order for citizens to fully exercise democratic control, it is necessary to ensure that citizens know the water cycle and its price. The Committee calls for the EU Blue Deal to have the same level of importance and attention as the EU Green Deal did.

3.   The Blue Economy

The Blue Economy

| 3.1. | The EESC believes that the future of the water economy should be based on the principle of a wellbeing economy and calls for basic economic concepts such as market rules, economic viability or productivity to take into account the various values of water. Competitiveness should be redefined so that it generates prosperity, taking into account human needs and fair access to water for people, communities and industries. The social aspects should be transversally integrated in the water economy. |
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3.1.

The EESC believes that the future of the water economy should be based on the principle of a wellbeing economy and calls for basic economic concepts such as market rules, economic viability or productivity to take into account the various values of water. Competitiveness should be redefined so that it generates prosperity, taking into account human needs and fair access to water for people, communities and industries. The social aspects should be transversally integrated in the water economy.

| 3.2. | There is a clear need for a paradigm shift in governance to consolidate the water economy, including striking a balance between environmental, social and economic concerns. Innovative transnational governance models that encourage financing, regulate the ethical involvement of the private sector, improve the management of water resources and stimulate EU competitiveness are necessary. |
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3.2.

There is a clear need for a paradigm shift in governance to consolidate the water economy, including striking a balance between environmental, social and economic concerns. Innovative transnational governance models that encourage financing, regulate the ethical involvement of the private sector, improve the management of water resources and stimulate EU competitiveness are necessary.

| 3.3. | The pressure on water economy business models is fuelled by the effects of climate change, greenhouse gas emissions, rapid urbanisation, migration, population growth in industrialised urban areas and industrial activities, but also innovative sectors such as blue bio-economy, bio-technology and desalination. Businesses should integrate collaborative business models and shared economy principles to better respond to current water-related societal and environmental challenges. Interaction and cooperation between local, regional, national and international institutions taking into account the many types of stakeholders present in the water sector and cross-sectorial dialogue must be intensified. |
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3.3.

The pressure on water economy business models is fuelled by the effects of climate change, greenhouse gas emissions, rapid urbanisation, migration, population growth in industrialised urban areas and industrial activities, but also innovative sectors such as blue bio-economy, bio-technology and desalination. Businesses should integrate collaborative business models and shared economy principles to better respond to current water-related societal and environmental challenges. Interaction and cooperation between local, regional, national and international institutions taking into account the many types of stakeholders present in the water sector and cross-sectorial dialogue must be intensified.

| 3.4. | The Committee urges the Commission to establish a fair competition framework for EU-based companies as regards their global counterparts, and to strengthen the implementation of international agreements on economic collaboration, working conditions and environmental protection. |
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3.4.

The Committee urges the Commission to establish a fair competition framework for EU-based companies as regards their global counterparts, and to strengthen the implementation of international agreements on economic collaboration, working conditions and environmental protection.

4.   Water economics

Water economics

| 4.1. | The EESC believes that the current economic model that encourages water consumption through taxes and incentives should be reversed to become a more sustainable one that is fully consistent with the SDGs. Water use should not only be sustainable, but also contribute to restoring nature in the short and long term. The EESC is asking for a global fiscal deal for financing the climate efforts and water investments. |
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4.1.

The EESC believes that the current economic model that encourages water consumption through taxes and incentives should be reversed to become a more sustainable one that is fully consistent with the SDGs. Water use should not only be sustainable, but also contribute to restoring nature in the short and long term. The EESC is asking for a global fiscal deal for financing the climate efforts and water investments.

| 4.2. | Clear and efficient coherence between various taxes imposed on water at local, national and European level should be facilitated. The EESC is calling for:






  — | the development of a water tax system for ground and surface water based on deductions for facilitating access to water for every person and industrial actor; |
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4.2.

Clear and efficient coherence between various taxes imposed on water at local, national and European level should be facilitated. The EESC is calling for:

—

the development of a water tax system for ground and surface water based on deductions for facilitating access to water for every person and industrial actor;

| — | water prices across Member States to be evaluated in accordance with the ‘polluter pays principle’; |
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—

water prices across Member States to be evaluated in accordance with the ‘polluter pays principle’;

| — | imposing taxes and surcharges for unsustainable water use, while incentivising sustainable use of water; |
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—

imposing taxes and surcharges for unsustainable water use, while incentivising sustainable use of water;

| — | a revision of the EU Industrial Emissions Directive (8) as regards impact on the EU water ecosystem. |
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—

a revision of the EU Industrial Emissions Directive (8) as regards impact on the EU water ecosystem.

8

| 4.3. | The EU is facing increased demand for water, a situation which will become more prominent in the future. Differences between water supply and demand can be a result of either water scarcity or floods, which can have devastating consequences. The imbalances between water supply and demand are negatively impacting industries, consumers and citizens. Progress towards achieving climate-neutral industries should consider industrial emissions into water (9), as well as the adverse effects on human health and the resulting social costs to society. It is essential for industries to bear the societal cost of their water emissions. |
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4.3.

The EU is facing increased demand for water, a situation which will become more prominent in the future. Differences between water supply and demand can be a result of either water scarcity or floods, which can have devastating consequences. The imbalances between water supply and demand are negatively impacting industries, consumers and citizens. Progress towards achieving climate-neutral industries should consider industrial emissions into water (9

| 4.4. | The EESC demands coherent legislation in all Member States on an EU mechanism for storing water during wet periods, namely though construction of storage tanks and underground aquifer recharge systems. The EESC is asking for a long-term strategy to increase resilience against water scarcity, taking into account the regional climatic specificities and industrial characteristics. |
| --- | --- |

4.4.

The EESC demands coherent legislation in all Member States on an EU mechanism for storing water during wet periods, namely though construction of storage tanks and underground aquifer recharge systems. The EESC is asking for a long-term strategy to increase resilience against water scarcity, taking into account the regional climatic specificities and industrial characteristics.

| 4.5. | Restructuring water price design in Europe needs to take into account sharing the burden for ecosystem services among stakeholders and a differentiated approach in implementing the full-cost pricing principle. One of the approaches is that water for domestic use and essential public services should have a significantly lower price than the water used for productive activities. Price incentives should take into account the link between marginal cost pricing and economic efficiency, equitability and sustainability, and be part of a larger package that encourages sustainable water consumption. |
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4.5.

Restructuring water price design in Europe needs to take into account sharing the burden for ecosystem services among stakeholders and a differentiated approach in implementing the full-cost pricing principle. One of the approaches is that water for domestic use and essential public services should have a significantly lower price than the water used for productive activities. Price incentives should take into account the link between marginal cost pricing and economic efficiency, equitability and sustainability, and be part of a larger package that encourages sustainable water consumption.

| 4.6. | The Committee demands full transparency of the costs and price of water towards all stakeholders. The EESC is asking for administered prices in certain well-defined situations and requires careful monitoring to ensure household consumers receive the services they are paying for. Water commercial speculation should be avoided. |
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4.6.

The Committee demands full transparency of the costs and price of water towards all stakeholders. The EESC is asking for administered prices in certain well-defined situations and requires careful monitoring to ensure household consumers receive the services they are paying for. Water commercial speculation should be avoided.

| 4.7. | The EESC notes that the impact of pollution and overexploitation of groundwater aquifers places a disproportionately high burden on poor and socially vulnerable people. Water tariffs must be evaluated with great attention, as they can have distortive effects, generate water poverty and create social distress among the population. The EESC is asking that constructive discussion at EU level on a fair water price design be started. The design of the price should include a minimum requirement of free water to ensure human rights. The structure of the prices should take into account current and future societal, climate and industrial challenges. The EESC is suggesting that the price design transversally take into account long-term water security. |
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4.7.

The EESC notes that the impact of pollution and overexploitation of groundwater aquifers places a disproportionately high burden on poor and socially vulnerable people. Water tariffs must be evaluated with great attention, as they can have distortive effects, generate water poverty and create social distress among the population. The EESC is asking that constructive discussion at EU level on a fair water price design be started. The design of the price should include a minimum requirement of free water to ensure human rights. The structure of the prices should take into account current and future societal, climate and industrial challenges. The EESC is suggesting that the price design transversally take into account long-term water security.

| 4.8. | The EESC believes that Extended Producer Responsibility should be extended to residual water management and supports the current revision of the Urban Waste Water Treatment Directive (10) (11). Synergy between EPR schemes, eco-design and information requirements should be introduced. Dedicated awareness campaigns connecting disparate and diverse stakeholders should be put in place for consumers in order to understand and recognise the sustainable use of water. |
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4.8.

The EESC believes that Extended Producer Responsibility should be extended to residual water management and supports the current revision of the Urban Waste Water Treatment Directive (10

11

| 4.9. | To ensure adequate maintenance of water systems and encourage increased water supply, it is crucial to address the issue of non-revenue water by prioritising ongoing maintenance initiatives aimed at significantly reducing water leakages. In order to properly finance such initiatives, the introduction of a ‘golden rule’ for public investments is necessary. The EESC underlines that poorly managed and underfunded maintenance, coupled with inadequate asset management, are causing significant economic losses. New technologies to detect leaks have to be developed immediately and dedicated support should be developed in this regard. |
| --- | --- |

4.9.

To ensure adequate maintenance of water systems and encourage increased water supply, it is crucial to address the issue of non-revenue water by prioritising ongoing maintenance initiatives aimed at significantly reducing water leakages. In order to properly finance such initiatives, the introduction of a ‘golden rule’ for public investments is necessary. The EESC underlines that poorly managed and underfunded maintenance, coupled with inadequate asset management, are causing significant economic losses. New technologies to detect leaks have to be developed immediately and dedicated support should be developed in this regard.

| 4.10. | The Committee is worried about insufficient assessments of the condition of underground sewer systems in many Member States and demands a thorough and immediate evaluation, including centralising data at EU level. The cost of not intervening is far greater than the cost of repairs in sewer networks. |
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4.10.

The Committee is worried about insufficient assessments of the condition of underground sewer systems in many Member States and demands a thorough and immediate evaluation, including centralising data at EU level. The cost of not intervening is far greater than the cost of repairs in sewer networks.

5.   Regional implications of water

Regional implications of water

| 5.1. | Access to safe, clean and quality water is a fundamental right and vital to everyone’s health, dignity and prosperity. The Committee finds it totally unacceptable that there are still people who have no access to water in the EU. |
| --- | --- |

5.1.

Access to safe, clean and quality water is a fundamental right and vital to everyone’s health, dignity and prosperity. The Committee finds it totally unacceptable that there are still people who have no access to water in the EU.

| 5.2. | The EESC considers it vital for water to be mainstreamed in all related policies (energy, commercial, industrial, agriculture, etc.) and that Member States ensure synergies between investments in various sectors adjacent to water, like urban development, food, agriculture and energy. Water is crucially important for urban and rural development. |
| --- | --- |

5.2.

The EESC considers it vital for water to be mainstreamed in all related policies (energy, commercial, industrial, agriculture, etc.) and that Member States ensure synergies between investments in various sectors adjacent to water, like urban development, food, agriculture and energy. Water is crucially important for urban and rural development.

| 5.3. | The EESC is proposing that an EU Blue Deal and an EU Water Agenda based on water investment partnership be developed, in close synergy with the EU Urban Agenda, along with a thematic partnership concerning water in accordance with the Ljubljana Agreement and in full complementarity with the Long-Term Vision for Rural Areas. Assuring territorial solidarity, adapted multilateral governance structures for dealing with differences between rural and urban areas and consolidation of regional water operators are important. |
| --- | --- |

5.3.

The EESC is proposing that an EU Blue Deal and an EU Water Agenda based on water investment partnership be developed, in close synergy with the EU Urban Agenda, along with a thematic partnership concerning water in accordance with the Ljubljana Agreement and in full complementarity with the Long-Term Vision for Rural Areas. Assuring territorial solidarity, adapted multilateral governance structures for dealing with differences between rural and urban areas and consolidation of regional water operators are important.

| 5.4. | Particular attention should be given to islands in the Mediterranean area and outermost regions that face water supply shortages during specific drought periods due to their geographical location. For these areas, the necessary water supply must be ensured through a system that guarantees supply to families and economic operators. |
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5.4.

Particular attention should be given to islands in the Mediterranean area and outermost regions that face water supply shortages during specific drought periods due to their geographical location. For these areas, the necessary water supply must be ensured through a system that guarantees supply to families and economic operators.

| 5.5. | The EESC is proposing public planning exclusively at a river basin level (including underground water) in such a way that the EU general interest is protected, and ensuring that the required ecological water flow is maintained at the originating body of water. Measures and water investments to protect areas from flooding or, anticipating droughts and protecting navigability, aim to retain more water, should aim at the same time to enhance biodiversity and respect geomorphological characteristics of the river basin. |
| --- | --- |

5.5.

The EESC is proposing public planning exclusively at a river basin level (including underground water) in such a way that the EU general interest is protected, and ensuring that the required ecological water flow is maintained at the originating body of water. Measures and water investments to protect areas from flooding or, anticipating droughts and protecting navigability, aim to retain more water, should aim at the same time to enhance biodiversity and respect geomorphological characteristics of the river basin.

| 5.6. | Considering its public nature, the EESC is suggesting that the right of use of water should be well defined, measured and monitored, taking into account all legal forms like concessions, permits, licenses, contracting rights and outright ownership, along with respecting water as a common good. The use rights should be easily measurable in well-defined terms. |
| --- | --- |

5.6.

Considering its public nature, the EESC is suggesting that the right of use of water should be well defined, measured and monitored, taking into account all legal forms like concessions, permits, licenses, contracting rights and outright ownership, along with respecting water as a common good. The use rights should be easily measurable in well-defined terms.

| 5.7. | The EESC recommends that the EU adopt and strengthen regulatory frameworks on water concession agreements to manage water as a public good, beyond and more than as a commodity that can be traded. Prices for the population should also reflect that water is a public good with full respect of Article 14 of TFEU and Protocol 26 annexed to TEU and TFEU. The EESC is calling for restrictive rules in order to protect the water resources of the EU from being used in the interest of non-EU stakeholders. |
| --- | --- |

5.7.

The EESC recommends that the EU adopt and strengthen regulatory frameworks on water concession agreements to manage water as a public good, beyond and more than as a commodity that can be traded. Prices for the population should also reflect that water is a public good with full respect of Article 14 of TFEU and Protocol 26 annexed to TEU and TFEU. The EESC is calling for restrictive rules in order to protect the water resources of the EU from being used in the interest of non-EU stakeholders.

6.   EU funds

EU funds

| 6.1. | The EESC is asking for more synergy at the level of the call for proposals and operational programmes to tackle the specificities of water investments and maximise the quality absorption of the EU funds dedicated to water and the blue economy. The seasonal and cyclical characteristics of water activities at the call for proposal level and in programming should be taken into account. The Committee is calling on the Member States to treat water investment as a high priority in reallocations within the various programmes, and for the adaptation of the State aid rules to the characteristics of water investment. |
| --- | --- |

6.1.

The EESC is asking for more synergy at the level of the call for proposals and operational programmes to tackle the specificities of water investments and maximise the quality absorption of the EU funds dedicated to water and the blue economy. The seasonal and cyclical characteristics of water activities at the call for proposal level and in programming should be taken into account. The Committee is calling on the Member States to treat water investment as a high priority in reallocations within the various programmes, and for the adaptation of the State aid rules to the characteristics of water investment.

| 6.2. | The EESC considers the European Maritime, Fisheries and Aquaculture Fund (12) insufficient to support the development and transition of the blue economy. It is urgent to diversify the eligible activities, increase complementarity between ESIF (13), the Recovery and Resilience Facility, InvestEU, Interreg Europe and other funds. Furthermore, the competition principle of ESIF water projects should account for the basic needs that water is meeting. |
| --- | --- |

6.2.

The EESC considers the European Maritime, Fisheries and Aquaculture Fund (12

13

| 6.3. | The EESC notes that Community-Led Local Developments, Fisheries Local Action Groups and Integrated Territorial Investments (ITI) are instruments which only partially cover water investment needs. The EESC calls for a dedicated operational programme for water and for an ITI for the blue economy, a correlation between different calls for proposals and an impact assessment of investment financed by EU funds which are targeted at water infrastructure. The EESC suggests that a Blue Transition Fund should be established by either ensuring a thematic concentration of the existing funds, or adding new funds. The fund should be dedicated to water-poor regions and should cover the transition towards sustainable water management, avoiding inequalities concerning water access and to support the EU 2050 targets being in full complementarity with the Just Transition Fund. |
| --- | --- |

6.3.

The EESC notes that Community-Led Local Developments, Fisheries Local Action Groups and Integrated Territorial Investments (ITI) are instruments which only partially cover water investment needs. The EESC calls for a dedicated operational programme for water and for an ITI for the blue economy, a correlation between different calls for proposals and an impact assessment of investment financed by EU funds which are targeted at water infrastructure. The EESC suggests that a Blue Transition Fund should be established by either ensuring a thematic concentration of the existing funds, or adding new funds. The fund should be dedicated to water-poor regions and should cover the transition towards sustainable water management, avoiding inequalities concerning water access and to support the EU 2050 targets being in full complementarity with the Just Transition Fund.

| 6.4. | The EESC concludes that water sectors should be recognised as strategic in the 2028–2034 programming period of the next MFF, and, given its recognised role as the voice of EU organised civil society, the EESC should be involved in the Smart Specialisation Platform for Sustainable Blue Economy (14). The EESC is proposing to add a mandatory ex ante conditionality for the 2028–2034 programming period. |
| --- | --- |

6.4.

The EESC concludes that water sectors should be recognised as strategic in the 2028–2034 programming period of the next MFF, and, given its recognised role as the voice of EU organised civil society, the EESC should be involved in the Smart Specialisation Platform for Sustainable Blue Economy (14

ex ante

7.   Financing the transition to new sustainable business models

Financing the transition to new sustainable business models

| 7.1. | The EESC advises Member States to investigate how public budgets and risk-mitigation tools (like guarantees and credit enhancement instruments) can be strategically employed to improve the risk-return profile of investments and attract commercial finance, crowdfunding and equity investments. The Committee is worried that public funding allocation will be problematic in some Member States due to the current level of public debt, increased interest rates and deterioration of sovereign credit rating. The EESC notes that the financing of private investments in the construction of water networks can be discouraged by the risk of facing corruption and regulatory unclarity, as well as, by the fact that such investments have a medium to long-term time horizon. |
| --- | --- |

7.1.

The EESC advises Member States to investigate how public budgets and risk-mitigation tools (like guarantees and credit enhancement instruments) can be strategically employed to improve the risk-return profile of investments and attract commercial finance, crowdfunding and equity investments. The Committee is worried that public funding allocation will be problematic in some Member States due to the current level of public debt, increased interest rates and deterioration of sovereign credit rating. The EESC notes that the financing of private investments in the construction of water networks can be discouraged by the risk of facing corruption and regulatory unclarity, as well as, by the fact that such investments have a medium to long-term time horizon.

| 7.2. | The EESC believes that water-related sustainable investments should be enhanced by using sustainable financing instruments like green bonds, social bonds and green loans, accompanied by consistent definitions of sustainability across various jurisdictions and greater level of standardisation and transparency in data. The EESC is proposing the regulation of blue bonds for water investments at EU level, along with tailored investment instruments for water dedicated to SMEs (e.g. via seasonal credits). The EESC is also asking Eurostat to provide a dedicated chapter and statistics for water economy data. |
| --- | --- |

7.2.

The EESC believes that water-related sustainable investments should be enhanced by using sustainable financing instruments like green bonds, social bonds and green loans, accompanied by consistent definitions of sustainability across various jurisdictions and greater level of standardisation and transparency in data. The EESC is proposing the regulation of blue bonds for water investments at EU level, along with tailored investment instruments for water dedicated to SMEs (e.g. via seasonal credits). The EESC is also asking Eurostat to provide a dedicated chapter and statistics for water economy data.

| 7.3. | Incorporating ESG (15) factors into the investment decision-making process enables a wider range of investment opportunities and promotes financial stability. The EESC demands investments in infrastructure, working conditions, quality jobs and training, and calls for specific activities and campaigns for water literacy, especially targeting the younger generation. Assuring a predictable and long-term career path and adequate wages is crucial for maintaining the human resources in the water sector. |
| --- | --- |

7.3.

Incorporating ESG (15

| 7.4. | Member States must understand, promote and support water investments, including using technical assistance funds, and dedicated support should be delivered by the Commission in this regard, especially in opportunities to reuse water. The EESC considers it crucial to direct financial resources towards projects that reduce water consumption and generate water re-use in all Member States, in line with Article 9 of the Water Framework Directive (16). |
| --- | --- |

7.4.

Member States must understand, promote and support water investments, including using technical assistance funds, and dedicated support should be delivered by the Commission in this regard, especially in opportunities to reuse water. The EESC considers it crucial to direct financial resources towards projects that reduce water consumption and generate water re-use in all Member States, in line with Article 9 of the Water Framework Directive (16

| 7.5. | Efficient coordination and complementarity should exist between the European Commission, EIB and EBRD in terms of financing water investments. This includes the development of common KPIs within the EU strategic framework, as well as the cyclical monitoring within the European Semester. Public banks across the EU also have an important role regarding water investments, and stakeholder collaboration with private banks should be consolidated. |
| --- | --- |

7.5.

Efficient coordination and complementarity should exist between the European Commission, EIB and EBRD in terms of financing water investments. This includes the development of common KPIs within the EU strategic framework, as well as the cyclical monitoring within the European Semester. Public banks across the EU also have an important role regarding water investments, and stakeholder collaboration with private banks should be consolidated.

8.   Investments

Investments

| 8.1. | Investment decisions in the EU must follow a thorough evaluation of the long-term water demand, availability of water resources and financing options, while also considering the challenges posed by climate change adaptation. The Committee believes that long-term investment planning should also quantify specific demographic trends and should be aligned with initiatives in other sectors, such as urban planning, land use or agriculture. Improvement in water facilities should also take into account maximising blue carbon storage. The EESC is urging Member States to implement synchronised spatial planning initiatives and big data analytics systems. Investment and financing in the water sector should take the operational expenses into account in an integrated way. |
| --- | --- |

8.1.

Investment decisions in the EU must follow a thorough evaluation of the long-term water demand, availability of water resources and financing options, while also considering the challenges posed by climate change adaptation. The Committee believes that long-term investment planning should also quantify specific demographic trends and should be aligned with initiatives in other sectors, such as urban planning, land use or agriculture. Improvement in water facilities should also take into account maximising blue carbon storage. The EESC is urging Member States to implement synchronised spatial planning initiatives and big data analytics systems. Investment and financing in the water sector should take the operational expenses into account in an integrated way.

| 8.2. | The EESC is asking for dedicated standards concerning water use in various economic sectors, for instance agriculture and industry, by building an expert group to develop sectorial water use guidelines, which would include the EESC. |
| --- | --- |

8.2.

The EESC is asking for dedicated standards concerning water use in various economic sectors, for instance agriculture and industry, by building an expert group to develop sectorial water use guidelines, which would include the EESC.

| 8.3. | Innovation and technology are key to drive efficiency in water management. The exchange of significant water-related innovations among Member States and the encouragement of bottom-up experimentation are crucial. Additional efforts are necessary to evaluate the economic, social and environmental costs and benefits of various investment pathways, ranging from local level to basin, national, trans-boundary and even global level. Implementing innovative technologies, such as low-cost satellite monitoring systems that track critical water parameters, can enhance the collection and analysis of water data. The involvement of the Member States should be taken into account in this regard. |
| --- | --- |

8.3.

Innovation and technology are key to drive efficiency in water management. The exchange of significant water-related innovations among Member States and the encouragement of bottom-up experimentation are crucial. Additional efforts are necessary to evaluate the economic, social and environmental costs and benefits of various investment pathways, ranging from local level to basin, national, trans-boundary and even global level. Implementing innovative technologies, such as low-cost satellite monitoring systems that track critical water parameters, can enhance the collection and analysis of water data. The involvement of the Member States should be taken into account in this regard.

| 8.4. | To raise adequate long-term capital aligned with the SDGs, natural capital projects related to water that face higher structural risks often require de-risking. Higher costs, lower earnings and financial losses related to water risks need to be carefully considered. Traditional loans and grants, venture capital, private and public equity, pension and investment funds should also be used. The possibility of green-washing persists as a result of a lack of consistent standards for green bonds and ESG investment funds. |
| --- | --- |

8.4.

To raise adequate long-term capital aligned with the SDGs, natural capital projects related to water that face higher structural risks often require de-risking. Higher costs, lower earnings and financial losses related to water risks need to be carefully considered. Traditional loans and grants, venture capital, private and public equity, pension and investment funds should also be used. The possibility of green-washing persists as a result of a lack of consistent standards for green bonds and ESG investment funds.

| 8.5. | The Commission must encourage the use of all relevant EU funds and partnership opportunities through social partners and civil society organisation networks to reach all stakeholders, with particular emphasis on SMEs. Blended finance can play an important role due to the low return of water infrastructure projects, nevertheless water service companies are still a good investment vehicle. |
| --- | --- |

8.5.

The Commission must encourage the use of all relevant EU funds and partnership opportunities through social partners and civil society organisation networks to reach all stakeholders, with particular emphasis on SMEs. Blended finance can play an important role due to the low return of water infrastructure projects, nevertheless water service companies are still a good investment vehicle.

| 8.6. | The EESC considers it crucial to incorporate resilience into water-related investment evaluation criteria. Resilience can reduce the expenses associated with recovery from unpredictable events like storms, floods, wildfires, droughts, cyber-attacks or pandemics when paired with optimal investments in risk-reduction measures. Specific attention and financing should be directed towards cross-border water projects. |
| --- | --- |

8.6.

The EESC considers it crucial to incorporate resilience into water-related investment evaluation criteria. Resilience can reduce the expenses associated with recovery from unpredictable events like storms, floods, wildfires, droughts, cyber-attacks or pandemics when paired with optimal investments in risk-reduction measures. Specific attention and financing should be directed towards cross-border water projects.

| 8.7. | Insufficient investment and lack of efficiency expenditure in water-related projects is the main reason why the EU and the rest of the world are not making significant progress in achieving SDG 6 on water and sanitation. The EESC highlights that Europe has the opportunity to transform water-related challenges into novel prospects for technology development, societal advancement and business growth, with the ultimate goal to achieve a water-secure and resilient economy, with full and productive employment opportunities and quality jobs for all. The EU can become a global leader in the water reusage field. |
| --- | --- |

8.7.

Insufficient investment and lack of efficiency expenditure in water-related projects is the main reason why the EU and the rest of the world are not making significant progress in achieving SDG 6 on water and sanitation. The EESC highlights that Europe has the opportunity to transform water-related challenges into novel prospects for technology development, societal advancement and business growth, with the ultimate goal to achieve a water-secure and resilient economy, with full and productive employment opportunities and quality jobs for all. The EU can become a global leader in the water reusage field.

Brussels, 13 July 2023.

The President of the European Economic and Social Committee

Oliver RÖPKE

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(1)  Non-revenue water (NRW) is water which is lost in the water distribution system, never reaching its final destination. This means water not used or paid for, which affects local economies as well as available local resources.

1

(2)  Urban Agenda for the EU.

2

(3)  Ljubljana Agreement and Multiannual Working Programme — Renewing the Urban Agenda for the EU.

3

(4)  Long-term vision for rural areas: for stronger, connected, resilient, prosperous EU rural areas.

4

(5)  2014-2020 European structural and investment funds.

5

(6)  Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (OJ L 198, 22.6.2020, p. 13).

6

(7)  
  OJ C 202, 7.6.2016, p. 307.

7

(8)  Directive 2010/75/EU of the European Parliament and of the Council of 24 November 2010 on industrial emissions (integrated pollution prevention and control) (OJ L 334, 17.12.2010, p. 17).

8

(9)  Industrial pollutant releases to water in Europe, European Environment Agency.

9

(10)  Proposal for a revised Urban Wastewater Treatment Directive.

10

(11)  Council Directive 91/271/EEC of 21 May 1991 concerning urban waste-water treatment (OJ L 135, 30.5.1991, p. 40).

11

(12)  European Maritime, Fisheries and Aquaculture Fund.

12

(13)  2014-2020 European structural and investment funds.

13

(14)  https://s3platform.jrc.ec.europa.eu/blue-growth.

14

(15)  Environmental social governance (ESG).

15

(16)  Directive 2000/60/EC of the European Parliament and of the Council of 23 October 2000 establishing a framework for Community action in the field of water policy (OJ L 327, 22.12.2000, p. 1).

16

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ANNEX

The following amendment, which received at least a quarter of the votes cast, was rejected in the course of the debate (Rule 74(3) of the Rules of Procedure):

Amendment 8

Point 1.4

Amend as follows:

| Section opinion | Amendment |
| --- | --- |
| The future regulatory framework of the EU Blue Economy has to:






  — | be based on the principle of a wellbeing economy; |

Section opinion

Amendment

The future regulatory framework of the EU Blue Economy has to:

—

be based on the principle of a wellbeing economy;

| — | transversally integrate social conditionalities and territorial solidarity; |
| --- | --- |

—

transversally integrate social conditionalities and territorial solidarity;

| — | strike a balance between environmental, social and economic concerns; |
| --- | --- |

—

strike a balance between environmental, social and economic concerns;

| — | benefit from transnational innovative governance models that encourage financing, regulate the involvement of the private sector, improve the management of water resources and stimulate EU competitiveness; |
| --- | --- |

—

benefit from transnational innovative governance models that encourage financing, regulate the involvement of the private sector, improve the management of water resources and stimulate EU competitiveness;

| — | adopt collaborative business models and shared economy principles; |
| --- | --- |

—

adopt collaborative business models and shared economy principles;

| — | adopt an institutional framework that will not burden the competitiveness of EU economic activities in the global market; |
| --- | --- |

—

adopt an institutional framework that will not burden the competitiveness of EU economic activities in the global market;

| — | offer greater transparency regarding sustainability initiatives. |
| --- | --- |

—

offer greater transparency regarding sustainability initiatives.

The future regulatory framework of the EU Blue Economy has to:

| — | be based on the principle of a wellbeing economy; |
| --- | --- |

—

be based on the principle of a wellbeing economy;

| — | transversally integrate social conditionalities and territorial solidarity; |
| --- | --- |

—

transversally integrate social conditionalities and territorial solidarity;

| — | strike a balance between environmental, social and economic concerns; |
| --- | --- |

—

strike a balance between environmental, social and economic concerns;

| — | benefit from transnational innovative governance models that encourage financing, regulate the involvement of the private sector, improve the management of water resources and stimulate EU competitiveness; |
| --- | --- |

—

benefit from transnational innovative governance models that encourage financing, regulate the involvement of the private sector, improve the management of water resources and stimulate EU competitiveness;

| — | introduce a ‘golden rule’ for investments in public infrastructure; |
| --- | --- |

—

introduce a ‘golden rule’ for investments in public infrastructure;

| — | adopt collaborative business models and shared economy principles; |
| --- | --- |

—

adopt collaborative business models and shared economy principles;

| — | adopt an institutional framework that will not burden the competitiveness of EU economic activities in the global market; |
| --- | --- |

—

adopt an institutional framework that will not burden the competitiveness of EU economic activities in the global market;

| — | offer greater transparency regarding sustainability initiatives. |
| --- | --- |

—

offer greater transparency regarding sustainability initiatives.

Reason

The amendment is in line with the modification already proposed and explained for point 4.9: Introducing a ‘golden rule’ for public investments is necessary for consolidating the position of water as a common good, as it is already mentioned in EU legislation.

Outcome of the vote

| In favour: | 84 |
| --- | --- |
| Against: | 93 |
| Abstention: | 17 |

In favour:

84

Against:

93

Abstention:

17

The following paragraph of the section opinion was amended to reflect the amendment adopted by the assembly but received more than one quarter of the votes cast (Rule 74(4) of the Rules of Procedure):

Amendment 6

Point 4.9

Amend as follows:

| Section opinion | Amendment |
| --- | --- |
| To ensure adequate maintenance of water systems and encourage increased water supply, it is crucial to address the issue of non-revenue water by prioritising ongoing maintenance initiatives aimed at significantly reducing water leakages. The EESC underlines that poorly managed and underfunded maintenance, coupled with inadequate asset management, are causing significant economic losses. New technologies to detect leaks have to be developed immediately and dedicated support should be developed in this regard. | To ensure adequate maintenance of water systems and encourage increased water supply, it is crucial to address the issue of non-revenue water by prioritising ongoing maintenance initiatives aimed at significantly reducing water leakages.
  In order to properly finance such initiatives, the introduction of a ‘golden rule’ for public investments is necessary.
  The EESC underlines that poorly managed and underfunded maintenance, coupled with inadequate asset management, are causing significant economic losses. New technologies to detect leaks have to be developed immediately and dedicated support should be developed in this regard. |

Section opinion

Amendment

To ensure adequate maintenance of water systems and encourage increased water supply, it is crucial to address the issue of non-revenue water by prioritising ongoing maintenance initiatives aimed at significantly reducing water leakages. The EESC underlines that poorly managed and underfunded maintenance, coupled with inadequate asset management, are causing significant economic losses. New technologies to detect leaks have to be developed immediately and dedicated support should be developed in this regard.

To ensure adequate maintenance of water systems and encourage increased water supply, it is crucial to address the issue of non-revenue water by prioritising ongoing maintenance initiatives aimed at significantly reducing water leakages.
  In order to properly finance such initiatives, the introduction of a ‘golden rule’ for public investments is necessary.
  The EESC underlines that poorly managed and underfunded maintenance, coupled with inadequate asset management, are causing significant economic losses. New technologies to detect leaks have to be developed immediately and dedicated support should be developed in this regard.

Outcome of the vote

| In favour: | 93 |
| --- | --- |
| Against: | 76 |
| Abstention: | 12 |

In favour:

93

Against:

76

Abstention:

12

---