Blue Deal: EU development banks announce jointly prepared financial instruments for water strategy

Brussels, October 10th - On the initiative of Poland's Bank Gospodarstwa Krajowego (BGK), development banks in the EU will jointly prepare financing instruments for water investments as part of the EU Blue Deal. The plan was announced today in the European Parliament during a conference on new ways to combat the water crisis in Europe. Among the participants were Pietro de Lotto - Chairman of the Consultative Commission on Industrial Change of CCMI, Oliver Loebel - Secretary General of EurEau, Beata Daszyńska-Muzyczka - President of BGK and Thomas Wojtczak - President of Amiblu Poland.

The originator of the meeting was the Federation of Polish Entrepreneurs, representing companies and industry organizations from a country with some of the smallest water resources in Europe. It was attended by representatives of the European Commission, heads of European water sector organizations, multinational companies, the EESC Consultative Commission on Industrial Transformation, MEPs and representatives of development banks from various EU countries, led by the European Investment Bank.

The conference was organized two weeks before the official announcement by the European Economic and Social Committee of its recommendations for urgent reform of EU water management and the EC's call for implementation of the so-called EU Blue Deal in the EU. The meeting discussed funding opportunities for investments to counter the water crisis. According to estimates by the EEA European Environment Agency, water scarcity affected more than 29% of the EU area in 2019 alone. It is a challenge not only for countries in the South, but also in the North (even Belgium is exposed). The situation is exacerbated by problems including outdated infrastructure, which causes huge leaks in the networks, especially in Italy, Romania and Bulgaria.

In her opening remarks ​ Beata Daszyńska-Muzyczka, president of the Polish development bank BGK mentioned that the BGK is supporting development of water industry and new technologies It is very growing industry, currently worth 4.6 bln euro only in Poland. Therefore, she also admitted that is very important sector for development of the economy in her country.

During the debate also spoke Pietro De Lotto, president of the CCMI at the European Economic and Social Committee.

"We need a positive strategic European approach, pushing for an awareness and enabling water saving technologies and water resilient actions at every level and in every sector", said De Lotto.

Karine Measson, head of water management at the European Investment Bank (EIB) also spoke about that EBI is going to invest money in a fair transition and especially in a water sector. The bank is going to support in ensuring the access to the water for the people. It is really important for us – admitted Measson.

The need to develop the EU as a whole, in turn, was pointed out by Florika Fink-Hooijer, Director General of the Directorate General for the Environment at the European Commission. - The EU need to stay competitive. Moreover, we need to prepare a document which shows data, where is a problem with water, in which areas.

Discussions in the EP stressed the need to change the EU's current approach to water governance and the opportunities that the Blue Deal presents. They pointed out the dispersion and inefficiency of regulations that do not reflect the current situation of water scarcity, already affecting a third of the EU area. Experts argued that power generation alone, hydrogen electrolysis, nuclear power plant cooling and carbon capture will require 58 billion cubic meters of water per year by 2050 - nearly double Europe's current drinking water consumption.

“We are so happy that a water policy is going on a high level and society see changes and is more and more aware about the issue. Changes in consumer behaviour, diversification of water sources, water storage and investments in infrastructure to reduce leakage will be very important," said Oliver Loebel, EurEau Secretary General.

The need for large investments in water management: water and sewage infrastructure, water-saving technologies or closed-loop circulation was pointed out by MEPs Magdalena Adamowicz and Jan Olbrycht (both EPP), among others, and Tomasz Wojtczak, president of Amiblu Poland, who also stressed the need to take environmental issues into account in water investment procurement.

“The EU Blue Deal is an opportunity to create one comprehensive strategy and a real solution to the problem of water scarcity in Europe. We hope that with this meeting we have taken another step to solve it. Without investment, the problem will grow, and competition for water will become a source of increasingly fierce disputes in the EU," concluded Marek Kowalski, chairman of the Federation of Polish Entrepreneurs.

Before the conference on solutions to Europe's water problem, a large banner with a graphic depicting a vision of the building in the reality of a desert continent stood in a park near the Parliament. Right next to it, water bottles were handed out to passers-by for 400 euros each - the price the life-giving liquid could cost in a few decades if the EU does not undertake drastic reforms today to change water management.