The EU’s Omnibus Simplification Package signals a notable policy shift, reducing the scope and depth of corporate sustainability reporting and due diligence under the Corporate Sustainability Due Diligence Directive and Corporate Sustainability Reporting Directive. While aimed at bolstering industrial competitiveness and responding to geopolitical pressures from the U.S. and China, the move significantly weakens enforcement around water-related disclosures under the European Sustainability Reporting Standards. This regulatory retreat risks slowing capital deployment into water efficiency, reuse, and management technologies that would otherwise be driven by compliance incentives.
Released alongside deregulatory moves, the EU’s Water Resilience Strategy reasserts the importance of water infrastructure and efficiency, mandating a 10% reduction in consumption by 2030. With a €15 billion financing pledge from the European Investment Bank, the strategy prioritizes smart technologies—including artificial intelligence, sensors, and digital twins—supporting the forecasted US$89.1 billion (€82.3 billion) in utility-led investment across Member States through 2030.
While the European Commission proposes scaling back sustainability obligations, other institutions are doubling down on accountability. The Council of Europe’s new criminal law treaty on environmental crimes, though nonbinding, introduces legal risk exposure for polluters. This dual-track trend—voluntary at the EU level but increasingly punitive in environmental justice arenas—suggests that businesses operating across borders are facing regulatory fragmentation and must proactively invest in compliance and resilience to avoid reputational and legal risks.
This H1 Policy Review highlights key developments and shifts in legislation and policy impacting the water and wastewater sector across Europe, both at the national and European Union levels of government. Bluefield’s team of water experts tracks changes in the regional, national, and subnational policy landscape to assess implications for market outlooks.
