Poland must actively shape European water policy as water scarcity and quality increasingly impact financial stability and investment decisions.
Water as a Financial Risk Factor
Water is transitioning from a purely environmental, social, and governance (ESG) reporting element to a key factor influencing financial stability and creditworthiness. Water footprints of products and supply chains are gaining importance in investment, banking, and trade decisions.
Moody’s Investors Service analysis indicates that water scarcity, pollution, excess (floods), and limited access directly affect sovereign and corporate credit ratings, impacting their ability to secure funding.
Water: Strategic EU Infrastructure
During a meeting in Brussels between representatives of the Federation of Polish Entrepreneurs and Polish businesses with Jessica Roswall, EU Commissioner for Environment, Water Resilience, and a Circular Economy, the need to treat water as a strategic infrastructure—on par with energy and digital infrastructure—was emphasized.
Commissioner Roswall stated that water security is a pillar of Europe’s economic security, essential for building a resilient and competitive economy, and crucial for competitiveness, safety, and preparedness.
The New European Water Resilience Strategy
The new European Water Resilience Strategy integrates water security into key EU economic policies, aiming for at least a 10% increase in water use efficiency by 2030, reduced risks from droughts, floods, and pollution, increased water reuse, digitalization of water data, and mobilization of public and private investment.
Impact on Industry and Finance
This shift positions water as a factor in economic, operational, and financial security for industry, agriculture, and critical infrastructure. Water scarcity can cause production disruptions, increased costs, and reduced competitiveness.
The strategy also focuses on ensuring safe drinking water supplies, increasing urban resilience to droughts and floods, and stabilizing municipal service prices. Water is increasingly integrated into financial decisions and ESG reporting, potentially impacting investment risk and capital costs.
EU Support and Investment Opportunities
The European Commission plans to launch tools like the Water Resilience Investment Accelerator, advisory support from the European Investment Bank (Sustainable Water Advisory Facility), and the European Water Academy to build water management competencies.
The European Investment Bank plans to allocate €15 billion between 2025-2027 to water-related programs, potentially mobilizing an additional €40 billion in market financing. The next EU Multiannual Financial Framework (2028-2034) identifies water resilience as a key investment priority, potentially allocating up to €300 billion.
Poland’s Opportunity
Magdalena Rzeczkowska, of the Federation of Polish Entrepreneurs, emphasized Poland’s opportunity to leverage European funding and become a leader in building water resilience, viewing water investment as an investment in national and corporate competitiveness.
Poland’s Water Challenges and Business Readiness
Poland has limited water resources, ranking near the bottom in Europe. This makes water transformation a necessity, not a choice. Polish businesses are increasingly monitoring water consumption, implementing environmental management systems, and setting reduction targets.
Sylwia Łyskawka, an FPP expert, noted that Polish businesses are ready for change but require stable funding mechanisms and clear regulations to unlock the full potential of water transformation.
Strategic Sectors and the Need for Collaboration
Water resilience is crucial for sectors like energy, agriculture, and supply chains, including the digital sector (cloud infrastructure, data centers), the chemical, paper, textile, food processing industries, and emerging sectors like battery and semiconductor production.
Effective coordination, a national water resilience strategy, project preparation, and utilization of financial instruments are essential for Poland to play a leading role in the EU’s water transformation.
Shaping EU Water Policy
Poland should actively participate in shaping new European water management rules to ensure national experiences are considered, avoiding potential errors seen in climate transformation initiatives.
Blue Deal Congress in Warsaw
The Blue Deal Congress, to be held June 16th in Warsaw, organized by the Federation of Polish Entrepreneurs, will serve as a key platform for discussing water economics, financing, and new regulations.
