From nature to finance: the solutions to make Europe more water-resilient

Why a water strategy?
Climate change is making Europe the fastest-warming continent on Earth. Extreme events such as floods, droughts and heatwaves are becoming increasingly frequent and intense, with serious impacts on health, the economy, and ecosystems. In this context, water—a limited and essential resource—can no longer be taken for granted.
This is why, in 2025, the European Commission presented the European Water Resilience Strategy: an ambitious plan aiming to ensure water security, availability and quality for all, while boosting EU competitiveness and promoting sustainable water use.
The objectives: three pillars of water resilience
The strategy revolves around three key goals:
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Restore and protect the water cycle, by improving the ability of soils, forests and wetlands to retain and purify water.
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Build a water-smart economy, by reducing waste and promoting reuse, supporting efficient and competitive water management that attracts investment.
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Ensure clean and affordable water for everyone, always, by empowering citizens to take part in water governance.
How it works: 5 areas of action
1. Governance and implementation
The strategy reinforces existing tools—such as the Water Framework Directive—and introduces a new Sponge Facility to enhance water retention across landscapes using nature-based solutions. It also includes a revision of the Marine Strategy Framework Directive to better align it with freshwater policies.
2. Investment and infrastructure
To implement existing legislation, the EU estimates an annual funding gap of €23 billion. The new Water Resilience Investment Accelerator will test 20 pilot cases focused on water retention and efficient use. Over €15 billion will be mobilised between 2025 and 2027 through cooperation with the European Investment Bank and innovative tools such as Nature Credits, Green & Blue Bonds, and Water-as-a-Service models.
3. Digitalisation
The EU will promote digital solutions to improve water management, such as smart monitoring and digital twins of landscapes, using satellite data (Copernicus). A European Water Observation Hub is on the way.
4. Innovation and skills
The Commission will launch a European Water Academy to bridge technical skill gaps in the water sector, along with a Knowledge & Innovation Community on water (within the EIT). The goal is to reinforce the role of the European water industry—already a global leader in patents—and to support the transition to water-smart solutions in agriculture, industry and energy.
5. Security and preparedness
Rising risks of cyberattacks and extreme water-related events demand stronger protection of critical infrastructure. The strategy strengthens early warning systems for floods and droughts and promotes the integration of water into national climate adaptation plans.
Etifor’s perspective: why it matters to businesses
This strategy opens up real opportunities for companies, regions and investors:
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Businesses will have access to new financial tools to improve water efficiency, reduce environmental impacts, and strengthen their ESG performance.
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Public authorities will be able to integrate water goals into adaptation, agriculture and urban planning strategies.
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Nature-based projects, like those promoted by Etifor, can play a key role in retaining water, regenerating soil, and reducing water-related risks.
At Etifor, we believe water resilience must be seen as a lever for innovation, employment, and local wellbeing. We need tailored, science-based solutions co-designed with the people who live and work in the territories.
Want to make your region or business more water-resilient?
Etifor supports public and private actors in building strategic pathways to improve water resource management—leveraging nature-based solutions and innovative financing tools. Contact us to learn more.