Brussels steps up to reduce leakages and solve the climate insurance gap

President Ursula von der Leyen from the European Commission introduced a new water initiative during the European State of the Union (SOTEU) on Wednesday 16 September. The reason for accelerating initiatives on water resilience was what she called the ‘summer of truth’. The European Commission will soon make proposals to improve risk management on leakages and address the insurance gap, stated Von der Leyen during the State of the Union held in the European Parliament in Strasbourg.

In her speech Von der Leyen said pipes lose almost one in every four litres, mostly through leakage. “We will put forward a new European Water initiative, because water is precious. For our industry and for our food security.” Leakage reduction is already addressed in the Drinking Water Directive, but the implementation of the regulation is not keeping pace with climate change. According to Von der Leyen in the SOTEU 2026 some 12 million tonnes of crops were lost due to drought and water scarcity. “Key rivers like the Danube, the Rhine and La Garonne are disappearing before our eyes.”

Leakage reduction rules in DWD

According to the current Drinking Water Directive (DWD), suppliers that produce more than 10,000 m³ of drinking water per day or supply more than 50,000 people had to inform the European Commission by early 2026 about their leakage levels. Then, by early 2028, the European Commission will have adopted a threshold on leakage rates. Member States exceeding the threshold will have two years from that date to present an action plan. Following this time schedule, leakage rate reduction can only be expected by 2030, which is far too late.

Europe ramps up on preparedness

“These were the hottest summer months ever, but probably the coolest of the years to come. Science is clear. Europe is warming at double the global rate. Of course, the transition is complex. And we will need to adjust and learn along the way. But there is no doubt: Europe can, must and will stay the course on its climate targets. This is not about mitigation or adaptation. We need both. And they need to strengthen each other. This is the only way to reach climate resilience. But we need to step up dramatically on preparedness”, said Von der Leyen.

New framework for climate resilience

The European Commission will present a new framework for climate resilience next month. Von der Leyen: “We will identify 100 of the most vulnerable territories in Europe. And we will assess the risks and at which level they should be managed. This will give us a whole of society approach; all the way through to the local level where adaptation matters most. And it will aim to make Europe the champion in adaptation technologies.” According to Von der Leyen this is ‘a huge emerging market’.

New Climate Insurance Alliance

The President of the European Commission said that only around 25 % of catastrophe losses in Europe are covered by private insurance at the moment. “This means that, far too often, national budgets become the insurer of last resort. We need to take action to close this gap. This is why the European Commission will set up a Climate Insurance Alliance. There can be no repeat of this summer. This is why we will also soon present a European Heatwave Plan. We need better early warning systems and better health preparedness. We need urban adaptation and cooling. And we need to support the most vulnerable.”

Water higher on the political agenda

EurEau welcomes the SOTEU announcement by the European Commission to put water and water security higher on the European political agenda. President von der Leyen’s recognition that water is fundamental to Europe’s industry and food security reflects the reality facing water services across Europe. Climate change, pollution, ageing infrastructure and increasing demand are putting growing pressure on Europe’s water resources and the assets that deliver essential water services. “Water services are essential to Europe’s security, prosperity and competitiveness, and resilient infrastructure is fundamental to ensuring that water remains available when and where it is needed,” says Oliver Loebel, EurEau Secretary General on the EurEau website.

Alignment with water resilience strategy

Aqua Publica Europea also welcomes all initiatives aimed at addressing the challenges facing the water sector. But it also emphasizes that it will be important to understand how the announced measures will fit within the European Water Resilience Strategy unveiled just one year ago, as well as within the existing regulatory framework, according to a statement on its website. “Predictability, policy coherence and alignment between funding mechanisms and ambitions are key to success. As Public Water Operators, we are already committing to and stepping up massive efforts to improve network efficiency and increase resilience, while ensuring that water remains affordable and that access to clean drinking water and sanitation is available to all.”