Opinion of the European Economic and Social Committee – Water resilience and the twin transitions: Industrial approaches addressing the relationship between water, digitalisation and decarbonisation (own-initiative opinion)
Date: 2025-09-18
Institutions: European Economic and Social Committee
Subjects: EU industrial policy, EU strategy, artificial intelligence, carbon neutrality, digital transformation, twin transition, water, water management, water resources, water supply








C_202600015EN.000101.fmx.xml












Official Journal of the European Union


EN
C series













C/2026/15


16.1.2026






Opinion of the European Economic and Social Committee
Water resilience and the twin transitions: Industrial approaches addressing the relationship between water, digitalisation and decarbonisation
(own-initiative opinion)
(C/2026/15)


Rapporteur: 
Carole DESIANO

Co-rapporteur: 
Michal PINTÉR






Advisor


Véronique CHAPPELART (to the rapporteur, Group II)




 


Alexandra ŠARINOVÁ (to the co-rapporteur, Category 1)




Plenary Assembly decision


22.1.2025




Legal basis


Rule 52(2) of the Rules of Procedure




Section responsible


Consultative Commission on Industrial Change




Adopted in section


10.7.2025




Adopted at plenary session


18.9.2025




Plenary session No


599




Outcome of vote
(for/against/abstentions)


124/0/0




1.   Conclusions and recommendations









1.1.


The European Union must equip itself with the means to secure water, guarantee its sovereignty in this domain and guard itself against cyberattacks, while becoming aware of the true value of water, as well as energy. Water and energy must be at the heart of European industrial planning, in synergy with the Green Deal and the Clean Industrial Deal. Artificial intelligence (AI), which is growing fast and has a great need for water, must be integrated into this planning process in a cross-cutting way.












1.2.


To make AI more sustainable, it is essential to support companies in optimising cooling technologies and recycling water, focusing on the use of non-potable water. It is also crucial to provide for sufficient funds under the multiannual financial framework to invest in research and development for cooling technologies that limit water consumption, and to design AI algorithms and models that are more water and energy-efficient. It is important to run information campaigns to raise awareness among the public and all economic players about the environmental impact that certain ways of using digital technologies on a daily basis have on water and energy consumption.












1.3.


With the European Commission’s ambitions to support a ‘highly sustainable AI continent’, gigafactories and the 100 000-chip network, the number of data centres will increase. Legislation is needed to clarify what ‘highly sustainable’ means and take into account the impacts on water, especially when it comes to data centres and other digital infrastructures. Such structures should be encouraged in areas with abundant water or use technologies that limit the impact on local resources.












1.4.


There is an urgent need for investments to improve the water supply chain and the interconnection of European river networks, which will facilitate and modernise water transport to regions with high industrial and digital demand. It is necessary to establish a European framework for water resource management, coordinated with national and local policies. Tax incentives or subsidies must be offered to companies to encourage them to adopt cutting-edge technologies aimed at saving water, through recycling or circular heat recovery.












1.5.


To improve data interoperability, in line with the Data Union Strategy, it is necessary to establish common standards for data collection, storage and sharing. The creation of European cloud platforms will allow secure and controlled access to data between Member States. Technology and digital companies need to be encouraged to make water data more transparent, including sources, volumes, recycling measures and audits, to ensure data reliability. The EU must support Member States with an action plan to defragment the water sector and facilitate its digitalisation. The EESC welcomes the European Commission’s proposal to establish a Copernicus Water Thematic Hub.












1.6.


The Committee calls on the EU to make water a strategic priority in the next Multiannual Financial Framework (MFF). A chapter on water needs to be included in all funds to support the implementation of the EU Blue Deal. This includes the transition to sustainable and resilient water infrastructure and management, research into and uptake of water-efficient technologies, as well as the employment and skills needed for the twin transitions of the industrial sector, the highly sustainable development of AI and competitiveness.












1.7.


It is crucial to support investments to improve water networks and infrastructure, thus enabling quantitative, qualitative and secure management of water distribution. Conditional financial incentives, such as data transparency and social dialogue, must be implemented.












1.8.


The EESC recognises 1) a gap in the implementation of the EU water acquis, 2) a lack of transparency, data collection and sharing along the water chain, 3) and the need for multilevel water governance, with the EU as an oversight body. We call on the EU institutions to ensure greater coherence in water policy and harmonisation of water-related policy objectives, and to consider the water-energy nexus in water management in order to reflect industrial water needs. The EESC reiterates its call for a revision of the EU strategy on industry and the twin transition to explicitly include water-related issues and ensure that water is treated as a fundamental element of this industrial strategy (principle 9 of the EESC’s EU Blue Deal Declaration). Over the next two years, the documents on transition pathways need to be revised to include water-related industrial challenges and opportunities (Action 10 of the EU Blue Deal Declaration).












1.9.


The EESC recommends increasing political and financial support for water-efficient decarbonisation technologies, in particular by prioritising Important Projects of Common European interest (IPCEIs) and Horizon Europe. The EESC also encourages the introduction of financial incentives and subsidies for industries that adopt water-efficient technologies and streamlined permitting procedures for the industrial implementation of water-efficient technologies aligned with decarbonisation.












1.10.


The EESC notes that, while decarbonisation reduces air emissions, it can shift environmental pressures to local water supply systems. The EESC recommends developing targeted policies to address water scarcity in industrialised areas and water stress zones, promoting alternative water treatment and reuse to ensure compliance with the Water Framework Directive (WFD). The Committee also calls for greater flexibility in the application of the ‘one out-all out’ principle under the WFD, through long-term water quality improvement plans, to balance environmental and socio-economic considerations in water management.












1.11.


The EESC encourages social dialogue on access to and management of water along the water chain. In addition, the EESC encourages EU Member States to introduce courses on water management, flood control, drought management and sustainable water use, especially in higher education and vocational education and training (VET), in line with the EU STEM Education Strategic Plan and EU Union of Skills.




2.   General comments









2.1.


As we move to a digital and green economy, we need to understand the complex relationship between digitalisation and decarbonisation, on the one hand, and water resilience, on the other. Welcoming the Water Resilience Strategy’s aim to assess and manage the water needs that come with the clean industrial and digital transformation, this opinion examines the relationship between water efficiency, the twin transitions, industrial decarbonisation and sustainable water use in data centres and industry and provides policy recommendations for a balanced approach to water management combined with climate neutrality.












2.2.


Water is a crucial resource, an essential economic factor and a key topic for EU regulatory action. Understanding and promoting the true value of water among stakeholders is crucial. The EESC welcomes the additional measures to support water investments via the mid-term review of EU cohesion policy. The EESC also stresses the need for comprehensive water management policies that promote water conservation and sustainable allocation across all sectors. Despite calls for water to be taken into account in EU policies, both the EU Clean Industrial Deal and the EU Competitiveness Compass explicitly mention water only once. Neither the Industrial Action Plan for the European Automotive Sector nor the European Steel and Metals Action Plan refer to water. The EESC therefore reiterates its call to revise the EU industrial and twin transition strategy to explicitly include water-related issues and for water to be treated as a fundamental element of the industrial strategy (principle 9).












2.3.


The EESC acknowledges the gap in the implementation of the EU water acquis, stressing that reducing it relies on robust data collection in all EU Member States. The success of the latest EU policies (Net-Zero Industry Act, Critical Raw Materials Act (CRMA), etc.) depends on the availability of well-managed quality water. Other EU policies have an indirect impact on water resilience, including the Regulation on Packaging and Packing Waste, the Urban Wastewater Treatment Directive and the EU Bioeconomy Strategy. A regulatory mapping exercise should be initiated to identify contradictions in EU legislation, and the potential for simplification or for harmonisation.












2.4.


Future EU-level regulations on water should consider the sector-specific features of the twin transitions and remain flexible to allow sectors to adapt their water practices to decarbonisation and digitalisation. Regulations should remain in synergy with the European Green Deal and the EU Clean Industrial Deal, as well as in sectoral synergy with the EU Common Agricultural Policy and cohesion policy.












2.5.


With regard to water management, the EESC supports multilevel governance, with consolidated EU oversight to ensure uniform implementation of policies across all EU Member States. Water governance structures at national and regional levels should apply a principle of shared management to ensure a balanced representation of stakeholder interests and equitable access to water across industries.












2.6.


Water data must be captured in a smartly designed system, accessible and more transparent to enable monitoring bodies at all levels of governance and across all supply chains (and not by specific consumer) to obtain a comprehensive picture of access to and use of water. The Commission proposes to make Earth observation data from space available to promote water management. The EESC supports stronger monitoring, inspections, data collection and sharing to improve evidence-based water governance and compliance with the WFD.




3.   The complex relationship between AI, water and CO2 emissions









3.1.


Interoperability of data in the water sector is essential for the sustainable and efficient management of this resource, allowing for better coordination and decision-making based on complete and accurate information. The EU needs a reliable database and standards for data exchange to ensure a fair and sustainable distribution of different water uses: the digitalisation and integration of AI in the field of water should make its management more efficient.












3.2.


In this context, the use of AI is essential and the technology already offers major benefits for water management and for optimising the quality of water distributed in networks:






—


real-time data monitoring and analysis using IoT sensors;










—


predictive modelling of hydrological events using algorithms;










—


analysis of water consumption behaviours in Europe.
















3.3.


The widespread use of AI in water management presents some challenges. In line with the EU Water Resilience Strategy, the EU needs to regain sovereignty over its data management and be less dependent on foreign providers, develop digital tools suitable for all Member States and help finance technologies such as smart sensors under conditions of open access to data, starting with cooperation between Member States with transboundary waters.












3.4.


It is important to note that AI has an ecological footprint, mainly through data centres that produce significant CO2 emissions and require the consumption of a large amount of energy and water for cooling. If appropriate solutions are not put in place, the exponential growth of the digital sector with the widespread deployment of AI could wipe out much of the rest of the industry’s efforts to decarbonise and be water efficient.












3.5.


The European digital economy accounts for 28 % of the global market share and the data centre market in Europe is currently estimated at USD 35 billion and is expected to reach USD 57 billion in 2029. According to a McKinsey study, energy consumption could triple from about 62 terawatt hours (TWh) today to more than 150 TWh by the end of the decade. Data centres could account for around 5 % of total energy consumption in Europe over the next six years, compared to around 2 % today. The EESC deems it essential to run large-scale information campaigns to raise awareness among the public and all economic players about the environmental impact of their daily use of digital technologies on water and energy consumption.












3.6.


Data centres can exert significant local pressure on water, especially in drought-affected areas. Next-generation hyperconnected data centres that use air cooling combined with evaporated water can consume more than 190 million litres of water per year (1), which is not returned to the natural environment once it has evaporated and the servers have been cooled. A data centre in the Netherlands consumed around 84 million litres of water in 2021, well beyond the initial estimates of 12 to 20 million litres announced when it was built. These projections indicate that, in a few years, AI will become one of the world’s most water-intensive processes.












3.7.


The EESC welcomes the fact that one of the actions set out in the Water Resilience Strategy is to include water usage among the parameters of a common EU scheme to rate the sustainability of data centres and propose water consumption minimum performance standards. The Committee calls for more data to be made available, in terms of both current consumption and reliable forecasts. With 40 % of the European population facing water scarcity, it is imperative that water and energy consumption, as well as CO2 emissions, be taken into account when building a data centre. It is also necessary to anticipate the maintenance of data centres, which are designed for a long period (25 years) and could quickly become obsolete compared to available resources, and to raise public awareness of issues related to water sharing.












3.8.


Other solutions should be considered, such as optimising air circulation in data centre rooms, improving refrigeration performance and recovering waste heat to re-inject it into networks that can be used to heat residential or industrial buildings. Also, building new data centres has to follow a careful industrial spatial design method, avoiding regions with water scarcity.




4.   Challenges related to decarbonisation and water use









4.1.


Decarbonisation requires a profound technological change, which varies per industry. While crucial to achieving a low-carbon economy, technological changes have different impacts on water needs and use patterns, with some technologies reducing water consumption and others increasing it. Decarbonisation pathways (electrification, green hydrogen and carbon capture, utilisation and storage (CCUS)) require new qualities and volumes of water, while offering greater efficiency through closed-loop systems. Understanding the link between decarbonisation and industrial water consumption is essential to guiding the EU’s green transition policy sustainably.












4.2.


Many decarbonising industries also consume a lot of water, making water use a challenge. CCUS may require additional cooling or mineralisation, increasing water demand. The adoption of hydrogen-based decarbonisation also has major implications for water demand as its expansion may compete with other industrial or domestic water needs, particularly in water-stressed areas. The EESC recommends prioritising the adoption of water-efficient decarbonisation technologies in industries in transition. The development of water-efficient technologies should be supported to ensure that decarbonisation does not exacerbate water scarcity, including through prioritisation under IPCEIs or Horizon Europe.












4.3.


The issue of access to and use of water has also not been adequately addressed in the mining and extractive industry, in particular in the CRMA. Industry relies heavily on water for mineral extraction, cooling and dust control, resulting in high water consumption and water contamination. European companies active in domestic mining need to consider water stress as a business risk and strive to reduce water losses due to evaporation, leakage, waste, or water contamination.












4.4.


A key challenge is to align changing industrial water use patterns with WFD obligations, ensuring that decarbonisation does not jeopardise water protection. It is becoming difficult for decarbonising industries to manage water while meeting WFD objectives, especially if located near small bodies of water. The ratio of discharged treated wastewater to natural water is disproportionate (i.e. the body of water is not in a ‘good’ condition) and the difficulty increases with the adoption of decarbonisation technologies using ultrapure or demineralised water. While decarbonisation reduces air emissions, it shifts environmental pressures to local water systems. The EESC recommends developing targeted policies to address water scarcity in industrial areas, promoting alternative water treatment and reuse to ensure compliance with the WFD.












4.5.


Given the sustainability of industrial sites and their water discharge conditions, it is necessary to respect the principle of not decreasing the quality of the receiving body of water, ensuring regular reviews of wastewater discharge permits and of the relevant water quality improvement plan for the body of water. It is also advisable to implement relevant Best Available Techniques (BATs). However, the EESC warns that strict enforcement of the ‘good status’ requirement could lead to restrictions or even cessation of industrial production in some areas and supports the introduction of more flexibility in the implementation of the ‘one out, all out’ principle through long-term water quality improvement plans.












4.6.


The EESC encourages the introduction, in accordance with State aid law, of financial incentives for industries that adopt water-efficient technologies and supports streamlining permitting for industries that adopt closed-loop, water-saving or water-purifying systems. Incentives could include tax breaks, grants and loans to support the implementation of water-efficient technologies. To make such technologies identifiable on the market, the EESC encourages the adoption of the European Water Label, as well as other labelling schemes (EU Eco-label or national water labelling schemes). Water management should be integrated into companies’ corporate social responsibility (CSR) strategies to demonstrate a commitment to sustainable water management. Finally, there is a need to include a water-energy link in regional water management and consider regional industrial water needs.




5.   Highly sustainable European AI









5.1.


Europe needs to invest in research and innovation to increase the ability of machines to operate in warmer environments, without damaging their components. Building data centres close to the sea or rivers, from which water can be easily extracted, while ensuring that water subsequently released into the environment does not pose pollution risks and does not damage ecosystems, would boost resilience. Natural and developed inland waterways are the best way of regulating water to ensure its accessibility and sharing, and the network of inland waterways used in some Member States could help address the challenges. It is important to establish territorial governance to decide on water pumping. Planning and regulation must be adapted to the local area in order to encourage societal acceptance.












5.2.


The EESC calls on industry to prioritise less energy-intensive learning models and algorithms, to use renewable energy that consumes less energy and water (solar, wind) to power data centres, to set up centres in regions without risk of water shortages and to take into account the needs of other sectors of activity.












5.3.


Companies moving in this direction could benefit from funding under the new State Aid Framework for the Clean Industrial Deal and the InvestEU Regulation, which would mobilise up to EUR 50 billion of additional private and public investment, including in clean technologies, clean mobility and waste reduction.




6.   Ensuring the availability of appropriate skills









6.1.


Social dialogue is essential for adapting corporate practices to achieve the sustainable integration of AI, addressing the human and organisational challenges inherent in a clean and competitive industry. It is also pivotal for enhancing local community engagement in water management, thereby strengthening grassroots support and participation. The EESC encourages social dialogue on access to water and sanitation management along the water chain to ensure broad stakeholder representation and to account for ecosystem impacts.












6.2.


Water resilience and the twin transitions require adaptation and up-skilling for industry to sustain a competitive edge. The EESC encourages the EU Member States to develop targeted training in water management, flood risk management, drought management, and sustainable water use, particularly within higher education and VET (Vocational Education and Training). The Committee welcomes the measures announced in the Water Resilience Strategy to support skills development, as well as the Union of Skills initiative and the EU STEM Education Strategic Plan as key frameworks for addressing skills shortages and enhancing digital competencies across the water sector.












6.3.


To tackle the challenges posed by digitalisation and decarbonisation, professionals in the water sector require sustained support for up-skilling and re-skilling. Lifelong learning and strategic talent management are essential to equip the EU workforce to fully capitalise on emerging opportunities within water-related domains.




7.   Demand more transparency, accountability and self-regulation from companies









7.1.


Large European operators that adhere to the Climate Neutral Data Centre Pact (CNDCP) should pay more attention to the use of water in their facilities in order to achieve climate neutrality by 2030, taking into account the region, climate, resources and the most sustainable cooling process. The EESC supports these initiatives and calls on companies to be transparent by making data on their water consumption and water reduction plan accessible.












7.2.


The Committee also supports the introduction of progressive pricing as an incentive to reduce water consumption. It also believes that industry should be responsible for regularly assessing facilities in order to identify the most efficient equipment and processes, and for integrating water management into CSR strategies, which would have to be in line with the fiscal conditionality criteria to which data centres are already subject (2).






Brussels, 18 September 2025.


The President


of the European Economic and Social Committee

Oliver RÖPKE
               





(1)  Sustainable data centre development – Deloitte insights.

(2)  For example, in France, operations to improve refrigeration in data centres resulted in the payment of an ‘energy premium’ under the ‘energy savings certificate scheme’.


ELI: http://data.europa.eu/eli/C/2026/15/oj
ISSN 1977-091X (electronic edition)