European water sector ‘at a crossroads’ says EurEau in latest statistical report

In its latest five-year statistical report EurEau, the European association for water services, says there is ‘reason for optimism’ for the European water sector despite it being at a crossroads due to increasing investment needs, chronic under-financing and an ageing workforce.

The federation notes that since the previous report was published there have been dramatic global changes. The Ukraine war and the resulting energy crisis, increasingly unpredictable US policy, and volatile global value chains, have impacted even the smallest local water operator. It adds that, simultaneously, the sector ‘increasingly feels the impact of climate change while struggling with traditional and new pollutants such as PFAS’.

This ´Europe’s Water in Figures´ report aims to help water professionals understand how far the sector has progressed as solutions providers and where the main problems lie. Since the last report, EurEau’s membership has expanded to include all EU Member States, alongside new and existing non-EU members. This has allowed the federation to provide extrapolations for the EU27 as well as for a broader European level, comprising European Union (EU) and European Free Trade Associations (EFTA) countries, as well as the United Kingdom. 

High connection rates

The data shows that connection rates have continuously increased over the past years with the biggest improvements in wastewater treatment. Today, 97% of the population is connected to a public water supply; 90% of the people in Europe are connected to wastewater collection; and 89% are connected to a wastewater treatment plant (WWTP).

Infrastructure renewal

Revenue collected, at €109.2 billion, represents an increase of 8% compared to the 2021 data. However, inflation in the analysed five-year period was significantly higher. The report describes this as a ‘worrying trend’ which ‘explains why water operators see infrastructure renewal as their biggest challenge’.

Investments remain below inflation

The report found that water services providers annually invest approximately €52.5 billion in infrastructure (EU27: €36.6 billion). On average, water service providers invest €101.49 (EU27: €82.38) per inhabitant per year (median value is €103.50 (EU27: €73.26) per inhabitant per year) in water infrastructure. This represents a 17.5% increase compared to 2021. But, when looking only at the EU27 figure, there is an increased investment of just 5%, which remains far below inflation, and, the report states, hints at strong budgetary constraints and an increasing investment backlog in many countries.

Employment crisis

Employment in the sector, which stands at 517,000 people in Europe, has had a slight but steady increase when compared to the 2017 and 2021 data. This is likely due to higher connection rates, more complex treatment requirements, and circular economy activites. However, the report states, that despite the increased employment trend the sector is facing an employment crisis and needs highly qualified professionals to deal with the increase in complexity of drinking water and wastewater treatment processes.

Ageing workforce

In a comparison of water sector salary levels compared to the overall economy it was found that pay levels are in line with or below the national average. In some countries the levels were significantly lower: in Belgium and Lithuania pay levels were around 63% of the national average, and less than half that in Romania. Another concern is that of an ageing workforce: the average age of water sector workers was found to be significantly higher than the average in the majority of countries that were able to supply data.

Reduction of water consumption

With regards to the production and consumption of drinking water in Europe the report found a clear downward trend compared to previous editions. Overall billed consumption and residential consumption per capita both decreased by 9% compared to the 2021 report, while drinking water production dropped by 5% over the same period. The report states that the figures strongly demonstrate the contribution of water services and their customers – households and businesses alike – to alleviating quantitative pressure on water resources.

Reduction of water leakages

Water losses, both in relation to real losses and non-revenue water losses, were found to have decreased significantly at the European level compared to the previous reports. Although wide disparities remain between countries, this shows that water services’ commitment to curbing distribution losses is bearing fruit.

Wastewater treatment data

And it was found that the total wastewater treatment capacity in Europe increased by 2% from the previous report. The data provides an overview of Europe’s wastewater treatment services before the recast Urban Wastewater Treatment Directive (UWWTD) comes into effect next summer. In Europe, 1.2% of wastewater receives quaternary treatment (which is not yet an obligation outside of Switzerland), 66.5% receives tertiary treatment while a further 23.9% receives secondary treatment, 6.8% receives other treatment, while 1.6% receives only primary treatment. 

Investments needed

The report concludes by stating that policymakers and businesses increasingly recognise the strategic value of water and reliable water services. But it highlights that almost all EurEau member countries expect investment needs to increase over the next five years with most of them anticipating an increase of more than 10%. A substantial part of these needs will be linked to compliance with the recast UWWTD. The extent to which these needs will translate into real investment will depend on sufficient long-term resources the report states.