In June 2025, the European Commission officially launched its long-anticipated Water Resilience Strategy, a cornerstone policy designed to address the accelerating degradation of water systems across the European Union. The initiative followed the October 2024 publication of a critical report by the European Environment Agency (EEA), which provided a comprehensive assessment of Europe’s rivers, lakes, coastal waters, and groundwater reserves.
The findings were stark. Europe is facing a systemic water crisis. Droughts and floods are increasing in both frequency and intensity, driven by climate change and exacerbated by decades of unsustainable water management. Today, around 30% of EU citizens experience water stress annually, while the economic damage caused by water-related disasters exceeded €480 billion in 2024 alone. Beyond these figures lies a profound social cost, including disruptions to essential services and loss of human life.
I In response, the Commission structured the Water Resilience Strategy around three core pillars:
- Restoring the water cycle
- Building a water-smart economy
- Ensuring access to clean and affordable water
To deliver on these objectives, the Strategy sets out 50 flagship actions to be implemented by 2028. Crucially, we are now entering the implementation phase, where tangible impacts for businesses are becoming clearer, although awareness across the private sector remains limited.
From the outset, the Commission emphasized that the priority would be full implementation of the existing EU water acquis, rather than introducing entirely new legislation. However, it quickly became evident that certain frameworks required targeted revisions and simplification to ensure effective implementation.
Revising the core framework: the water framework directive
A key example is the Water Framework Directive (WFD), the backbone of EU water policy since 2000. Recognizing emerging challenges, the Commission launched a targeted revision aimed at:
- Streamlining regulatory procedures
- Supporting the EU’s Critical Raw Materials (CRM) Act
- Removing bottlenecks for industrial, mining, and water management projects
The recent call for evidence, which closed on April 14, 2026, received over 3,000 submissions, highlighting strong public engagement. However, only around 2% of contributions came from companies and industry stakeholders, with the overwhelming majority submitted by private citizens. This imbalance is telling. It reveals a persistent gap in awareness among businesses, particularly SMEs, regarding the importance of engaging in EU policy processes. Yet these consultations represent the first and most direct opportunity to influence legislation that will shape operational and investment conditions for years to come.
Being active in Brussels and influencing legislation does not mean engaging in politics for its own sake but rather using policy as a strategic business tool to shape and anticipate legislative changes instead of merely complying with them. Engaging in technical discussions with institutions and key stakeholders in Brussels on sectoral and highly relevant topics can make a substantial difference, especially for smaller companies, between survival and economic growth in a regulatory-friendly environment.
Expanding the policy landscape: marine and flood directives
The Water Resilience Strategy also foresees the revision of the Marine Strategy Framework Directive by 2027. The original 2008 objective of achieving “good environmental status” by 2020 was not met, with marine biodiversity continuing to decline and pollution from land-based sources persisting.
The upcoming revision aims to:
- Relaunch concrete environmental actions
- Support innovation by European companies
- Simplify regulatory frameworks while maintaining coherence with the broader water acquis
Similarly, the Commission is evaluating the Floods Directive (2007), with potential revisions expected in the coming years. Early engagement with EU institutions and Member State representations will be critical here. Brussels remains a unique environment where companies can interact not only with EU institutions but also with all 27 Member States via their Permanent Representations, shaping both EU-wide and national approaches.
Likewise, Brussels represents a unique opportunity where it is possible to meet and influence all 27 Member States via their national Permanent Representations. By engaging with them, companies can not only influence specific legislative EU files but also present their efficient technical solutions to concrete problems, such as floods and other innovations in the water and marine sectors.
Climate adaptation: the next legislative frontier
Beyond water-specific legislation, the Strategy strongly reinforces the need to scale up climate adaptation efforts. While mitigation remains central, extreme weather events will continue and intensify over the next decade.
For this reason, the Commission is accelerating the process to present a legally binding proposal for a new European Climate Adaptation Plan. Two public consultations and calls for evidence were launched at the beginning of 2026, which saw impressive participation from stakeholders across Europe.
Now, the Commission’s Directorate-General for Climate Action, in close cooperation with the Directorate-General for Environment, is working on drafting a legislative proposal to be discussed and approved by the two co-legislators (the European Parliament and the Council of the EU) in the coming year. The upcoming Climate Adaptation Plan will complement and give legal force to the Climate Adaptation Strategy approved by the EU in 2021, and will set standards, legal obligations, and incentives for companies, private households, public contractors, and Member States to adopt the necessary measures to tackle extreme weather phenomena, including floods, droughts, and other natural and unforeseen events, ensuring Europe is prepared and resilient in the face of future emergencies.
This is once again a unique opportunity for companies to create a business case for their products and services across the EU, raise awareness, and expand their technologies across the European market. Legal obligations to protect against floods, reduce water consumption, or prevent drought through specific technologies will create concrete business opportunities. Being active in Brussels at an early-stage means being able to anticipate and shape these changes, while raising awareness, building visibility among key stakeholders, and positioning the company in a broader European perspective, enabling expansion. The competitive advantage of early engagement is clear: companies that engage early help shape and define the standards that others will later have to follow.
Water efficiency and circularity
A central operational target of the Strategy is to achieve 10% water efficiency by 2030. To support this, the Commission will work with Member States to develop a common methodology for water efficiency benchmarks, expected to be formalised in the 2027 review of the Strategy. Water reuse is another priority area. Currently, only 2.4% of wastewater is reused in the EU, with significant disparities between countries. The Commission plans to revise the Water Reuse Regulation by 2028, introducing new standards and targets.
To be successful, the EU is keen on listening to and gathering feedback from the entire industry and developers of new and efficient technologies for water reuse and treatment. In this context, SMEs should engage to ensure their voice is heard in Brussels alongside larger corporations, providing technical input that will shape general standards for water recycling policies.
These developments will strongly interact with the upcoming Circular Economy Act, expected in the third quarter of 2026, which will serve as the overarching legislative framework for resource efficiency and recycling across sectors, including water.
Financing the transition: investments and innovation
To finance this progress and boost innovation, the Commission is working on launching the Water Investment Accelerator, expected to be presented by the end of 2027. This strategic tool aims to address bottlenecks and unlock more efficient investment in the water sector. More specifically, it seeks to identify and implement 20 pilot innovative projects for natural water retention and water efficiency, bringing together local investors, solution providers, and problem owners to inspire replication across the EU. The Accelerator could become a key instrument in closing the estimated €23 billion annual investment gap identified in the Strategy and enabling the transition towards a water-smart and resilient society. Even though this initiative may seem ambitious, SMEs in the water sector should engage in dialogue with the Commission to position themselves among these pilot projects. In most cases, the size or stage of the company matters less than the innovation and technological value it brings forward.
In parallel, the 2026 calls under the LIFE Programme, opened on March 23, represent a key yet often underutilised opportunity. While LIFE is not water-specific, it plays a strategic role in supporting innovative and scalable projects. Funding streams under Circular Economy and Quality of Life, Nature and Biodiversity, and Climate Adaptation offer concrete opportunities for water-related solutions, from pollution reduction and reuse to ecosystem restoration and drought resilience. For SMEs and technology providers, LIFE offers a valuable pathway to deploy advanced solutions, including digital and AI-based tools, bridging the gap between policy ambition and implementation.
Research, innovation, and market uptake
Despite strong scientific knowledge, significant gaps remain in understanding water systems and their interaction with climate, energy, and food systems. To address fragmentation, the Commission will adopt a Water Resilience Research & Innovation Strategy by the end of 2026.
Building on EU Missions such as Restore our Oceans and Waters and Adaptation to Climate Change, this initiative aims to:
- Accelerate innovation
- Reduce time-to-market
- Strengthen Europe’s global leadership in water technologies
EU stakeholders’ engagement
As policy developments in the water sector intensify, EU institutions are increasingly keen to engage with innovators and companies. The European Water Resilience Forum, first held in December in Brussels, is one such platform, offering a space for dialogue and visibility. It will meet every two years, allowing stakeholders to present solutions and maintain ongoing engagement with policymakers.
To further strengthen this connection, the Commission launched in March 2026 a call for applications for the Water Resilience Stakeholders Platform. Its mission is to support implementation of the Strategy by engaging relevant actors across key areas such as governance, finance, innovation, and security. Even beyond application deadlines, it remains essential for companies, especially SMEs, to engage with such platforms and provide concrete feedback from the ground to ensure policies are implementable and business friendly.
For all these reasons, engaging in Brussels can be highly beneficial for companies looking to expand operations and grow across Europe. Public affairs should not be seen as “doing politics”, but rather as using policy to shape the future regulatory environment, create business opportunities, and position companies as European players within an evolving market.
Reach out at info@lykkeadvice.eu to find out how we can support SMEs with tailored strategies to engage effectively in EU policy.
