Trade associations warn Commission of economic risks of weakening WFD

The European Commission is investigating how to revise the Water Framework Directive to facilitate mining and industrial activities. Last week, eight trade associations sent a warning letter to the European Commissioner for Environment, Water Resilience and a Competitive Circular Economy, Jessika Roswall. The organisations fear that weakening the Water Framework Directive would lead to higher costs and economic risks.

Drinking water providers and food and beverage producers explain in the letter that reducing raw water quality would translate into higher treatment costs. These costs will ultimately be passed on to consumers and users of water services, including businesses (especially SMEs and services of general interest), potentially exacerbating inflationary trends.

Economic effects of declining water quality

According to the organisations, declining water quality could lead to the closure of specific activities or the abandonment of certain water sources. For example, when additional treatment is legally prohibited, technically unfeasible, or economically disproportionate. “This will cause a reduction in overall water availability and increase tensions among different users and/or sectors (including essential services) for access to the resource”, warn the writers of the letter. They also point at the risks for aquaculture and other food production, which are particularly sensitive to water quality and ecosystem conditions. “The deterioration of water quality directly reduces productivity and marketability, affecting rural and coastal employment as well as, potentially, the resilience of the whole food supply chain.”

Impact assessment revision WFD

The organisations (Aqua Publica, EurEau, EWA, SGI Europe, AEPM-EMPA, IAWD, Natural Mineral Waters Europe, and Unesda Soft Drinks Europe) represent several sectors that are essential both to citizens’ daily lives and to other economic activities. These sectors include drinking water services, food production, beverages, and other water-dependent activities. The recently published Call for Evidence for an impact assessment on a targeted revision of the Water Framework Directive highlights the need to address potential bottlenecks in the current legislation in order to facilitate access to critical raw materials, in line with the ResourceEU strategy.

Consider the interests of water-dependent economic sectors

The organisations that wrote the letter understand the EU’s broader policy priorities aimed at strengthening European competitiveness and reinforcing strategic autonomy in key supply chains, including for critical raw materials. They welcome the call from the European Commission to identify specific economic, social, and environmental impacts. “In this context, we call on the Commission to carefully consider the potential consequences for water-dependent economic sectors arising from any changes to the current legal framework.”

Regulatory stability is key for a thriving economy

During the call for evidence, the unintended operational and economic consequences of weakening quality objectives or protection principles across a broad range of sectors and uses should be thoroughly evaluated. “Regulatory stability is a key condition for enabling long-term investments and attracting capital. Water infrastructure, production facilities, and nature-based solutions require planning horizons that often span several decades, making predictable and stable regulatory frameworks essential for their successful deployment. A robust and stable water framework is not only an environmental safeguard but also a structural condition for significant parts of the European economy to thrive, invest, and contribute to the Union’s competitiveness and strategic autonomy.