European Blue Deal – what changes does the European Union have in its approach to water management and how will it affect the renewable energy industry?

Magdalena Pasik, Water Management Engineer and Environmental Engineer

The Blue Deal is an extensive strategy aimed at the sustainable handling of water resources, enhancing resistance to climate change, and encouraging creative solutions in the renewable energy field. In this article, we will examine the primary concepts of the European Blue Deal, evaluating how these modifications will impact the renewable energy (RES) sector.

Confronting escalating challenges linked to climate change, the European Union is channeling its efforts into sustainable development and endorsing inventive economic approaches, such as the efficient utilization of water resources. Against this backdrop, the European Blue Deal stands out as a pivotal step in reshaping economic and energy systems toward a more environmentally conscious future.

This article delves into the pivotal components of the European Blue Deal, with a specific focus on water management initiatives and their potential ramifications on the renewable energy sector. Additionally, we will briefly explore the proposed alterations in the European Union’s approach to water resource utilization and the associated challenges and opportunities for companies involved in renewable energy.

What is the idea of ​​the Blue Deal?

Confronting the global challenge of climate change has spurred numerous actions to mitigate its impact, particularly in the realm of water management. The foundation for these initiatives lies in directives such as the Water Framework Directive, which addresses water protection against nitrate pollution from agriculture, and commitments arising from collaboration with the Helsinki Commission and the European Environment Agency.

Since the unveiling of the European Green Deal in December 2019, the EU has consistently crafted regulations pertaining to sustainable development and resource efficiency. Following the enactment of legal measures related to the circular economy, biodiversity protection, soil, and forests, detailed analyses of regulations regarding water resource protection have taken center stage.

A notable addition to these efforts is the European Blue Deal, initiated by the European Economic and Social Committee (EESC) to address growing water availability challenges in Europe. Serving as the water equivalent of the Green Deal, the Blue Deal operates under the rallying cry “Call for Blue Deal.”

Key issues tackled by the Blue Deal include combating water poverty, developing sustainable water infrastructure, addressing the economics of water management, implementing water-saving technologies, and managing water sustainably in the context of the climate crisis.

A pivotal moment occurred on October 26, 2023, during a key institutional debate at the EESC plenary session on the Blue Deal. This debate urged the European Commission to prioritize water policy at the European level. The initiative aims to ensure access to water, safeguard water resources, and instill sustainable water management. These new regulations appear to set the stage for a transformative market shift encompassing both environmental and economic dimensions.

What changes in law will the Blue Deal bring?

The assumptions adopted on October 26 for the EU Blue Deal comprise a comprehensive set of 15 guiding principles and 21 specific proposals to amend existing legal acts. These initiatives aim to revolutionize the approach to water resources in Europe. Notably, the principles underscore the creation of a water policy grounded in current, accurate, and reliable water data. The new strategy seeks to establish a human rights-based approach, with a focal point on addressing water poverty in the European region.

During the conference, President Oliver Röpke of the European Economic and Social Committee emphasized the significance of these assumptions and underscored the need to prioritize water resource protection from 2028 to 2034. This involves advocating for an interdisciplinary approach, recognizing that water is not solely an ecological concern but also a social and economic one.

The primary proposals outlined in the Blue Deal target sectors with intensive water usage, including industry, agriculture, and households. Immediate implementation suggestions encompass developing guidelines for monitoring water access, continuous data collection on water resources and infrastructure, establishing an EU advisory platform, enacting regulations for permanent water storage during rainy periods, financing water and sanitary infrastructure development, and introducing a water consumption label to the market.

Crucially, the Blue Deal extends beyond the European Union. The contained regulations imply the need to formulate international policies promoting economical and efficient water use. Additionally, there is a call to integrate water resource protection into the EU’s foreign policy and external relations. This signals the European Union’s commitment to actively engage on the global stage in environmental and natural resource protection.

What support will companies implementing the Blue Deal count on?

The European Economic and Social Committee (EESC) has proposed several crucial measures, foremost among them the establishment of a Blue Transition Fund. This specialized operational program, concentrating on water management and integrated territorial investments, represents a significant stride toward sustainable transformation.

Gaining endorsement from the European Parliament, the Water Group, and pertinent organizations in the field, the Blue Deal is set to receive approximately EUR 400 billion under the EU strategy. Both businesses and local government units will have the opportunity to apply for these funds, intended to support objectives such as safeguarding clean water resources, fostering sustainable water management, and facilitating a “just blue transition.” The allocated funds are expected to facilitate diverse investments, including the creation of infrastructure to bolster water conservation and enhance utilization.

The EESC’s recommendations also advocate for Member States to prioritize investments in water management. They emphasize supporting innovative technologies that enhance the efficient use of gray water, treated sewage, and small treatment plants. The anticipated value of projects encompassed by the EU Blue Deal program is estimated to exceed EUR 390 billion. These investments will span various areas, encompassing water retention, the advancement and modernization of water and sewage infrastructure, sewage treatment plants, promotion of closed-loop technologies, and effective water management in the energy, agricultural, and industrial sectors. This comprehensive plan seeks to realize the sustainable utilization of water resources in Europe.

How will this affect the renewable energy industry?

The introduction of the new Blue Deal is poised to significantly contribute to the advancement of the renewable energy industry. This initiative encompasses substantial investments and funds earmarked for the water sector’s economic development. The European Union’s commitment involves supporting the adoption of technologies facilitating efficient water management, recycling, pollution reduction, and the mitigation of losses resulting from network leaks, with a likely positive reception for Small Hydropower Plants initiatives.

The shift toward an ecologically sustainable blue economy not only underscores environmental protection but also underscores the necessity of investing in modern technologies. Innovations such as the utilization of wave and tidal energy, algae production, the advancement of innovative fishing gear, and the restoration of marine ecosystems are designed to foster the creation of new jobs and businesses focused on ecological principles within the framework of blue economy development.

However, certain proposals within the Blue Deal, like the introduction of a “water footprint” and obligations related to water storage systems and closed loops, raise questions about the specific support EU companies will receive during this transformative process. There’s also a current lack of precise guidelines regarding how the European Economic and Social Committee (EESC) approaches the methodology for calculating the “water footprint.”

Critical concerns include whether companies will be mandated to provide detailed reports on their water footprint, accounting for three aspects: the green water footprint (determining water usage from atmospheric precipitation), the blue water footprint (defining water usage from surface and groundwater resources), and the gray water footprint (specifying water pollution in the production process). While various global initiatives, such as The Water Footprint Network, aim to enhance global awareness of water use, most have been voluntary. In contrast, the stipulations of the Blue Deal exert a tangible impact on water resource usage, particularly by tightening usage processes.

As a result, the industrial sector should initiate internal water audits promptly, assessing opportunities for water reuse, especially steam generated in industrial processes. This is a pivotal step in readiness for potential acquisition of EU funds supporting innovative solutions like closed water circuits in industrial plants. The New Blue Deal presents a notable opportunity to enhance water relations, subsidize water supply and sewage systems, and transform approaches to water retention.

For Poland, the Blue Deal represents a chance to secure financial resources for water management projects. To shape the strategy’s final form, Poland must establish a unified position on water priorities and actively engage in the document’s creation during its early stages.

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