(1)

Due to unsustainable water management practices, pollution and growing demand, water quality and quantity as well as the health of aquatic ecosystems in the Union are not improving at the pace they should. Climate change and biodiversity loss are exacerbating this trend. Water constraints increasingly affect society and the economy. In this context, increased water efficiency becomes a bare necessity.

(2)

The Commission report to the Council and the European Parliament (1) which presents the progress on the implementation of Directive 2000/60/EC of the European Parliament and of the Council (2) and Directive 2007/60/EC of the European Parliament and of the Council (3) confirms that most Member States perceive water scarcity as a growing concern. Water scarcity occurs in about 34 % of the Union’s territory and affects about 40 % of the Union’s population during at least one season in a year (4). Water scarcity is caused by a combination of overexploitation and climate impacts (5). The European Parliament called for action on these matters (6).

(3)

Droughts affect on average 4 % of the Union’s territory every year. In southern and south-western Europe, river discharge during summer could decline by up to 40 %, under a 3 °C temperature rise scenario. Over the last decades, they have increased in number and intensity in Europe. The severe drought and heat events in 2022, for instance, caused an estimated EUR 40 billion of economic losses with the largest losses recorded in Italy, Spain and France (7).

(4)

Ongoing climate change is expected to make the problem worse, as the impacts and frequency of droughts increase. The combined impact of structural overconsumption and increased risk of prolonged droughts pose risks to water security, drinking water supply, agriculture, inland navigation, tourism and power supply (8). Water scarcity across sectors and loss in agricultural production due to combined heat and drought belong to the top key risks from climate change in Europe (9).

(5)

Freshwater abstraction per year has decreased, with geographical differences, by 19 % between 2000 and 2022 (10), however abstractions of freshwater per capita are expected to increase again. This is because: (i) the progress on water efficiency in the most consumption intensive sectors such as energy and agriculture, including bioenergy is insufficient; (ii) industrial and digital transformation require more freshwater; and (iii) mismanagement, pollution and climate change are exerting increasing pressures on the availability of clean freshwater for socio-economic purposes. This harms the ecological flows essential to safeguard the water ecosystem, and the competitiveness of the Union’s economy which needs clean freshwater as much as it needs clean energy.

(6)

The European Central Bank estimates that up to 60 % of outstanding credit risks in the euro area could suffer some exposure to water scarcity and heat stress, and 20 % to floods (11). Moreover, as water-related climate risks intensify, the insurance gap could increase (12), making economic recovery after water related incidents like droughts or floods more difficult.

(7)

Investing in water efficiency will contribute to providing sufficient water to key economic sectors that are critical for the Union’s strategic autonomy and has hence potential to enhance competitiveness, as recognised in the Clean Industrial Deal (13). Harnessing water saving potential will also create business opportunities and cost savings for consumers. The Union’s industry is already a global front runner in developing water technologies.

(8)

The 2025 Competitiveness Compass (14) calls upon Member States to address growing water scarcity by improving water management practices and infrastructures, increasing water efficiency and promoting sustainable water use. The Joint Communication on the European Preparedness Union strategy (15) stresses the need to strengthen access to critical resources across the Union, such as water, for example for emergency and disaster response.

(9)

The interdependence between water and energy resources is a critical factor in ensuring the security and resilience of the Union’s water and energy systems.

(10)

The Union is obliged to act on water efficiency based on European and international rules such as the United Nations Convention on the Protection and Use of Transboundary Watercourses and International Lakes signed on 17 March 1992 in Helsinki, Article 7 of the Paris Agreement signed on 12 December 2015 in Paris, Article 5 of Regulation (EU) 2021/1119 of the European Parliament and of the Council (16) as well as the European Union’s commitments under the UN Water Action Agenda (17). Target 6.4 of the UN Sustainable Development Goals also obliges Parties to substantially increase water-use efficiency across all sectors already by 2030.

(11)

The European Green Deal (18) launched a concerted strategy for an increasingly climate-neutral, toxic-free, resource-efficient and competitive economy, where economic growth is decoupled from resource consumption, as a response to climate and environmental-related challenges.

(12)

The Union strategy on adaptation to climate change (19), the European climate risk assessment and the Communication on managing climate risks give an overview of the vast range of impacts from climate risks and the necessity to take action as policy and measures taken do not keep up with the pace of climate change. Dealing with water scarcity and droughts is one of the fields where action is needed. It is underlined that ensuring freshwater availability in a sustainable manner is fundamental for climate resilience.

(13)

Water shortages have a very strong impact on the health of marine ecosystems and the viability of the social and economic activities of coastal and island communities that depend on them. Managing fresh and marine waters in an integrated, efficient manner is thus a necessity.

(14)

The circular economy action plan (20) provides an agenda to advance towards keeping resource consumption within planetary boundaries, including water. In line with this objective, promoting the safe reuse of water in different sectors can unlock economic potential in water-stressed regions. It can also reduce the need for expensive infrastructure projects like new reservoirs or desalination plants, leading to long-term savings and improved business resilience to water shortages, as well as to reduced operational risks.

(15)

Regulation (EU) 2024/1781 of the European Parliament and of the Council (21) enables the setting up ecodesign requirements that products have to comply with to improve a series of aspects, including water use and water efficiency, for almost all categories of physical products. The elements of this Recommendation will contribute to its implementation.

(16)

This Recommendation provides guidance on elements which are not addressed in a comprehensive way in the Union water legislation: Directives 2000/60/EC, (EU) 2020/2184 (22), (EU) 2024/3019 (23), (EU) 2024/1785 (24) of the European Parliament and of the Council and Regulation (EU) 2020/741 of the European Parliament and of the Council (25).

(17)

To promote water efficiency, it is appropriate to define a set of principles and recommendations that should form the basis for future Union and Member State actions to secure a more systematic consideration of the water saving potential in decision-making, and a more responsible use of water in all sectors.

(18)

The principle of water efficiency first aims to ensure long-term sustainability of water consumption, bearing in mind that natural freshwater resources are finite and will be further reduced due to increasing global warming. Measures to increase water efficiency should build on a cost-benefit analysis including economic, environmental and societal externalities, while also considering subsidiarity, proportionality, fairness and equity.

(19)

To accelerate the application of the principle of water efficiency first and to promote a large-scale deployment of water efficient measures, it is necessary to establish guiding objectives. For that reason, Member States should be encouraged to set their own targets for water efficiency, based on their national circumstances.

(20)

The implementation of the water efficiency principle should make best use of new technologies such as digital smart meters and sensors for detecting and managing leaks, including from drinking water infrastructure, as required under Article 4(3) of Directive (EU) 2020/2184.

(21)

Where measures to increase water efficiency need to be sequenced to resource constraints, priority should be given to those sectors consuming the most water or sectors with the highest water saving potential and following an assessment of the trade-offs, especially in relation to strategic sectors, while also respecting the water hierarchy. Those sectors will necessarily differ from one river basin to another and from one aquifer to the other.

(22)

Water efficiency measures should be embedded in the programmes of measures of river basin management plans. These measures can lead to water saving and the desired progress towards water resilience only if they are part of a comprehensive approach. Accompanying governance measures and the use of economic instruments can turn water efficiency gains into lasting improvements of the water balance by avoiding rebound effects. Water efficiency strategies should always be consistent with national climate adaptation strategies.