Urgent need to link industrial water resilience and competitiveness

A circular water approach could deliver a water saving potential of 50-75% in light industries, equivalent to the annual water use of 67 million households.

Fragmented and inconsistent water rules across Member States are limiting industrial water efficiency, reuse and water circularity. A circular water approach could deliver a water saving potential of 50-75% in light industries, equivalent to the annual water use of 67 million households.[1] Without targeted financial incentives, proven water resilience technologies will not scale. Low awareness of water as a strategic risk leaves many businesses unprepared: stronger guidance and tools are urgently needed.

Brussels, 30 September 2025: As Europe faces mounting water stress, a new report commissioned by Grundfos, a global leader in advanced pump and water solutions, underscores the urgent need for joint public-private action to deliver the EU Water Resilience Strategy (EU WRS) and boost the competitiveness of EU industries. In 2022, over 40% of the EU population faced water scarcity, and nearly one-third of EU territory was under stress. Without urgent action, the cost of drought alone could reach €17 billion annually by 2050^[2].

Against this backdrop, the report, developed by GlobeScan, an independent sustainability insights firm, draws on a series of in-depth interviews with leading companies from sectors including food & beverage, pharmaceutical and chemical, technology, digital infrastructure, and green energy. Together, these companies represent over €1 trillion in annual revenue and are helping shape Europe’s journey toward a water-resilient future. These industry testimonials were then combined with public polling conducted by GlobeScan.   

The report comes at a pivotal moment, ahead of the October Council Conclusions on the Water Resilience Strategy (17 October) which are expected to shape Europe’s water agenda for years to come.  The report finds that while growing in importance, water resilience still lacks clear standards, incentives, and guidance needed for businesses to act at scale.

Critical levers for progress

The report identifies five key levers that can unlock faster business implementation of the EU WRS. Out of these, the first three highlight where urgent progress is needed:

1. Harmonised standards and supportive frameworks to scale investment potential:
   Current water regulations are fragmented across Member States, creating barriers to scaling water reuse and circular solutions. Harmonised, science-based standards would give companies the clarity and confidence to invest, while aligning water policy with broader EU priorities, such as critical raw materials, data centres, decarbonisation and sustainable agriculture.
    
2. Financial incentives and mechanisms to support infrastructure and innovation:
   While technology solutions for water reuse and resilience exist, many remain commercially unviable due to high upfront costs and low water prices. Grants, subsidies, tax credits, and targeted public-private investment are essential to accelerate adoption and prevent proven solutions from staying on the shelf.
    
3. Strategic awareness and guidance for business:
   Water is often undervalued compared to energy or carbon, leaving many executives unaware of the material risks to business continuity. Clear, harmonised EU guidance, combined with decision-support tools, integration into existing frameworks, and stronger regulatory clarity, would help businesses embed water resilience into their core strategies.
    
4. Local capacity building and cross-sector collaboration to drive integrated and shared business solutions:
   Water risks are local, but strategies are often designed top-down. Stronger capacity at the regional level and closer collaboration between industries, authorities and stakeholders are needed to turn EU ambition into practice. Empowering local actors and creating hubs of excellence would drive shared infrastructure, innovation and watershed-level solutions.
    
5. Societal momentum to treat water as a critical resource:
   Water resilience cannot be achieved by industry alone. Currently, public awareness remains low, and trust is often lacking, especially around recycled water. Engaging citizens and communities through education, local partnerships, and transparent dialogue is essential to building acceptance for water reuse, fostering water stewardship, and making water resilience a shared responsibility.

Together, these levers provide a practical roadmap for aligning business ambition with policy action, ensuring that Europe can move from strategy to implementation and secure a truly water-resilient future.

The road ahead

The findings confirm strong public and expert support for action.  According to GlobeScan’s 2025 public opinion data[3], 81% of Europeans believe that large companies have a responsibility to encourage governments to do more to protect water, and 91% want governments to create the right conditions for businesses to protect and manage water sustainably. 

More specifically, 75% of European sustainability experts identify subsidies that incentivise sustainable choices and solutions as the most impactful government lever to drive sustainability. When asked about business actions, seven in ten experts view circular economy practices (71%) and technology innovation and R&D for sustainability solutions (70%) as the most impactful.

”Europe cannot achieve water resilience without harmonised standards and targeted incentives. These are essential to unlock the full potential of industrial innovation and investment. With the right framework and stronger public awareness, businesses can help secure water availability for all, safeguard Europe’s competitiveness, and reinforce its climate adaptation strategies”, says Tom Finke, VP Water Treatment Grundfos Industry.

Why water resilience matters now

Water scarcity is no longer just an environmental issue but a growing challenge for European competitiveness and strategic autonomy. A circular water approach could deliver a water saving potential of 50-75% in light industries, equivalent to the annual water use of 67 million households, with individual processes saving up to 85-90% using existing technologies.

Recognising this, the European Commission adopted the EU WRS in June 2025, setting out over 45 actions to restore and protect Europe’s water cycle. The EU WRS recognises water as a guiding priority for resilience, competitiveness, and crisis preparedness, but industry leaders caution that the right enabling conditions are needed for businesses to deliver at scale. As such, its success hinges on effective implementation by both industry and Member State policymakers, highlighting the importance of the upcoming Council conclusions on the EU WRS.

The full report can be downloaded from: https://www.grundfos.com/solutions/learn/research-and-insights/europe-s-resilient-water-future