Governing water in a drier Europe

Drought, flooding, and pollution are already disrupting Europe’s water systems. They damage homes and farms, interrupt freight and power generation, and put drinking water and other essential services under strain. Europe needs to restore the landscapes that hold water, reduce avoidable demand, and connect basin warnings to funded action before critical thresholds are crossed.

Keeping water and landscapes functioning

Europe is a continent shaped by water. The Rhine, Danube, Po, Loire, Elbe, and hundreds of smaller rivers connect its cities, farms, ports, and industries. Rainfall sustains most European agriculture, while rivers support drinking-water supply, power generation, manufacturing, navigation, and ecosystems across national borders.

In summer 2026, record or near-record low levels on major rivers disrupted freight, hydropower, and other economic activity. Elsewhere, intense rainfall exposed settlements and infrastructure to destructive flooding. Europe increasingly faces too little water, too much water, and polluted water within the same region, sometimes within the same year.

Climate pressure is likely to intensify, though patterns will differ by region. The European Environment Agency expects heavy precipitation and droughts to increase in the coming years. Intense rain can arrive too quickly to replenish groundwater, producing flash floods, erosion, and polluted runoff on land already affected by drought and fire.

The condition of Europe’s waters leaves little room to absorb these pressures. A European Parliament foresight study estimates that water stress affects around 30% of Europe’s population each year. In 2021, only 39.6% of EU surface waters had good ecological status. Anticipatory action can reduce exposure, protect households, and prepare authorities before water shortages, floods or pollution interrupt essential services. Europe already has river basin plans, national hydrological services, Copernicus monitoring, engineering capacity, and experienced water utilities. These capabilities need clearer thresholds, finance, and delivery responsibility.

Why the system is vulnerable

Compacted soils, drained wetlands, disconnected floodplains, and sealed urban areas shed rainfall quickly and retain less water for dry periods. Leakage, rising demand, and pollution reduce available supplies further. Planning and finance remain divided among water, land, farming, energy, and civil protection. Drought and low river flows can restrict drinking water, crops, hydropower, cooling, and navigation at the same time. Fire and prolonged dryness damage soils; heavy rain on damaged land can then cause erosion, contamination, and flash flooding without recharging groundwater. Emergency abstraction and subsidies can protect people and services during a crisis, but repeated use can delay ecological recovery and sustain high demand.

What Europe needs to do

  1. Restore Europe’s capacity to hold water—and reduce avoidable demand. Rebuild soils, wetlands, floodplains, aquifers and permeable urban areas so rainfall is held for longer and flood peaks are reduced. Cut leakage and avoidable withdrawals through crop and protein choices, industrial reuse, efficient buildings and transparent allocation rules, while protecting ecological flows and essential household access.
  2. Prepare, allocate and govern at the scale of the water system. Combine water budgets, forecasts and vulnerability data with agreed drought, flood and pollution thresholds. At each level, name the authority, legal power, funded action, review date and public communication, so warnings lead to restrictions, service protection, reservoir operations or mutual assistance before local capacity is exhausted.
  3. Turn water commitments into delivery. Give basin, regional and local authorities the staff, technical support, project preparation, finance and maintenance capacity needed to turn plans into connected portfolios. Shared expertise and catchment agreements should link upstream costs to downstream benefits and allow smaller municipalities and land managers to participate.

From priorities to practice

Restore Europe’s capacity to hold water—and reduce avoidable demand

1. Restore Europe’s capacity to hold water—and reduce avoidable demand

Align land use, infrastructure, and funding to retain more water in soils, wetlands, aquifers, and urban areas while reducing excessive withdrawals.

European and national authorities should align farming, land restoration, urban planning, flood management, and water funding around measurable physical outcomes. A common scorecard should track soil water-holding capacity, infiltration, groundwater recharge, wetland and floodplain connectivity, urban permeability, ecological and chemical status, and the share of rainfall retained locally; spending and project counts should be reported separately rather than treated as proof of resilience. The assessment should cover the full water cycle—blue, green and atmospheric water—and test proposals against efficiency, sufficiency and resilience together, as recommended in Climate KIC’s work on systemic water management. Existing river basin plans should identify the largest opportunities to save water, including less water-intensive protein production and crops, industrial reuse, efficient buildings, and leakage reduction, then assign delivery responsibility, funding, and deadlines. The Water Framework Directive provides common standards and a basin-planning framework. Its function here is to coordinate objectives, monitoring, and review across sectors and borders, while implementation should strengthen existing plans rather than create another planning cycle.

2. Assess natural and hybrid options first

Require major water and flood projects to compare restored natural functions, hybrid designs and fully engineered infrastructure before funding is approved.

Major water, drainage and flood-protection projects receiving public support should assess natural, hybrid, and engineered options before funding is approved. Promoters should state the service required, the options assessed, performance under present and future climate conditions, ecological and social effects, whole-life cost, maintenance, and skills needs, and why the selected option provides the strongest overall result. The comparison should cover flood-peak reduction, drought buffering, soil-moisture retention, groundwater recharge, water quality, river continuity, carbon, biodiversity, cooling, public-health benefits, land requirements, distributional effects, and avoided damage. A grey-only design should require a documented justification, while treatment plants, barriers and engineered drainage should remain available where natural measures cannot meet safety or reliability requirements. The Room for the River programme shows how flood safety can be combined with restored river space and spatial improvements.

3. Finance retention and fair adjustment

Share the cost of verified gains in water retention, recharge and risk reduction while protecting affordable household access and supporting land managers who bear costs.

Article 9 of the Water Framework Directive requires member states to consider cost recovery for water services and the polluter-pays principle. National authorities could assess how compliant funding arrangements might recognise verified retention, recharge, filtration, and risk reduction. Utilities and flood authorities should be able to invest in upstream soils, wetlands, forests and floodplains when these measures are cost-effective and linked to measured changes in water quality, flow, retention or risk rather than hectares treated. Funding can combine regulated investment, catchment water funds, payments for ecosystem services, outcome-based contracts, guarantees, resilience bonds, insurance participation, and aggregation facilities for small land-management projects. South West Water’s Upstream Thinking programme shows how utility investment can support farmers and reduce pollution upstream of drinking-water sources. Land-manager support should distinguish payment for ongoing services, compensation for temporary flood storage, transition support for investment and learning, and rapid compensation after extreme events. Essential household consumption should remain affordable through targeted support, while stronger conservation incentives and progressive charges can apply above normal use; every arrangement should disclose who pays, who benefits and which outcomes are purchased.

4. Build connected sponge landscapes

Connect soils, wetlands, floodplains, permeable streets and safe overflow routes across farms, towns and cities so more water remains in the catchment.

River basin plans should assemble connected rural, river, urban, and groundwater portfolios rather than fund isolated assets. Farm measures can include soil cover, reduced compaction, agroforestry, hedgerows, field margins, small wetlands, and temporary flood-storage agreements. River measures can include reconnected floodplains, rewetted peatlands, restored wetlands and riparian corridors, removal of obsolete barriers, and space for safe flooding. Urban measures can include de-paving, restored soils, rain gardens, bioswales, permeable streets, tree canopy, rainwater capture and reuse, green roofs, constructed wetlands, floodable public space, and safe overflow routes. In the Amsterdamse Waterleidingduinen, about 70 million cubic metres of Rhine water pass through the dunes each year, with sand providing natural filtration over roughly three months. Copenhagen’s Cloudburst Management Plan connects streets, parks, storage, and engineered drainage as one city-wide system. Each portfolio should specify ownership, maintenance, land agreements, monitoring, and how risks could shift elsewhere.

Prepare, allocate and govern at the scale of the water system

5. Prepare, allocate and govern at the scale of the water system

Combine water budgets, forecasts, and vulnerability data so agreed thresholds trigger restrictions, service protection, funding, and public communication.

Basin water budgets should combine renewable supply, ecological needs, abstraction, consumption, leakage, return flows, reuse, water retained in landscapes, and expected climate pressures. They should distinguish essential from non-essential uses, make distributional effects explicit and test short-term measures against long-term hydrological limits so emergency responses do not lock in greater scarcity, following the European Parliament’s foresight study on water availability and use. They should inform river basin plans, agricultural decisions, land-use plans, infrastructure investment, permits, and drought preparation, while water allocation remains with national, basin and local authorities. WISE, Copernicus, the European Flood Awareness System, the European Drought Observatory, and national services provide much of the required information. Each warning level should specify the responsible authority, legal power, budget, review date, and action, including public communication, drinking-water protection, temporary conservation measures, reservoir and flood-storage operations, protection of hospitals and infrastructure, deployment of specialist teams, evacuation or shelter, and European civil-protection support. Annual exercises and post-event reviews should test the full chain from observation to public action. Compound stress tests should cover prolonged drought, intense rainfall, pollution, infrastructure failure, heat, and wildfire together, and assess continuity of drinking water, wastewater, electricity, food, navigation, health, communications, and industrial cooling.

6. Agree catchment compacts

Authorities, water users and communities can agree shared investment, scarcity rules, maintenance, and emergency arrangements for each catchment.

A Catchment Compact should turn a river basin plan into a shared programme of investment, maintenance, and preparedness. It should include a basin water budget; agreed outcomes for ecological status, retention, recharge and preparedness; a map of priority landscapes, infrastructure and vulnerable communities; an investment and maintenance portfolio; assigned responsibilities; contributions from public and private beneficiaries; a standing participation forum; annual reporting; emergency exercises; and reviews after major droughts, floods or pollution events. Parties could include national, regional and local authorities, water and wastewater utilities, flood and civil-protection bodies, farmers, foresters, businesses, infrastructure operators, insurers, community organisations, and scientific bodies. A compact could begin as a voluntary agreement attached to a river basin plan and gain contractual or statutory force if experience shows value. The Rhine Action Programme and the Danube Flood Risk Management Plan provide precedents for sustained cross-border coordination, shared planning, and emergency cooperation. Compacts should make upstream costs and downstream benefits explicit and prevent one territory from transferring flood, scarcity or pollution risk to another.

Turn water commitments into delivery

7. Turn water commitments into delivery

Give regions and municipalities the expertise, project support, and long-term funding needed to implement basin plans.

Regional and local authorities should be able to request tailored teams for hydrological and ecological assessment, portfolio design, technical specifications, permits, procurement templates, land agreements, cost-benefit analysis, outcome measurement, and public participation. Climate KIC’s place-based adaptation work and WRI’s water-security programmes reinforce the same implementation lesson: data and pilots need institutions, skills, finance and collaborative catchment governance to change decisions at scale. A library of proven-solution profiles should state the problem addressed, the conditions in which a measure works, expected water and social outcomes, indicative cost and delivery time, responsible institutions, permitting and procurement requirements, required skills, maintenance, financing routes, and limits to transferability. A finance navigator should connect projects to cohesion, agricultural, adaptation, national, and European Investment Bank funding and aggregate small interventions into portfolios large enough to finance efficiently. Multi-year basin programmes should cover project preparation, construction, monitoring and long-term maintenance, while shared expertise should allow smaller municipalities to participate without maintaining every specialist role themselves. MIP4Adapt supports regional adaptation planning and capacity. Its delivery role should extend further into procurement, contracting, and project finance.

How the measures work together

Water budgets show where ecological and service margins are shrinking; agreed thresholds then trigger allocation rules and measures that protect drinking water, sanitation and other essential services. Delivery support, finance and project appraisal turn basin plans into connected investments, while restored soils, wetlands, floodplains and permeable urban areas reduce future restrictions, treatment pressure and flood damage.

Every intervention needs a transferred-risk test. Storage and transfers can improve supply in one place while increasing pressure elsewhere; efficiency gains can disappear if demand grows; land and water pricing can shift costs to households, farmers or tenants. Regulation, affordable essential access and ecological flows therefore need to be assessed with physical water outcomes.

What progress looks like

Reliable essential services

Healthier landscapes and water bodies

Delivery and fair adjustment

Project counts and spending totals are insufficient on their own. Assessment should cover water retained, ecological condition, continuity of essential services, maintenance and the distribution of benefits and costs.

Further reading