Urban Insight report: Europe’s water under pressure

Six concrete actions and practical case studies demonstrate how Europe can strengthen its water systems in the face of growing challenges, according to Sweco’s Urban Insight report:  ‘Too much, too little, too polluted – Taking on Europe´s water challenges’. 

Across the continent, access to clean, safe water has long been taken for granted. Turning on the tap and expecting high-quality water has been a cornerstone of public health, economic development and social stability. For decades, Europe’s water services have been among the continent’s great infrastructure successes. Today, that assumption is increasingly being challenged. 

The European Environment Agency (EEA) reports that 32% of Europe’s groundwater is under pressure from diffuse pollution. While floods dominate headlines, a silent crisis of scarcity is unfolding. Water stress affects roughly 20% of Europe’s territory and 30% of its population annually. 

Climate change, ageing infrastructure, rising demand and contaminants such as PFAS – the so-called ‘forever chemicals’ – are putting unprecedented pressure on drinking water and wastewater systems.  

Why source to tap – and back to nature – matters

Prolonged droughts, record‑breaking heatwaves and changing rainfall patterns are turning water scarcity from an exception into a recurring reality. In Europe, electricity production and cooling account for around 33% of total water abstraction, followed by agriculture (31%), public water supply (21%), manufacturing (14%) and mining (1%). 

Around 65% of Europe’s drinking water is supplied by groundwater. In several countries, these resources are under increasing pressure from the use of pesticides, nitrate pollution and insufficient protection of recharge areas. At the same time, emerging micro-pollutants – including PFAS, pharmaceuticals and industrial chemicals – have now been detected in most water bodies and are difficult and costly to remove.  

As a result, only a minority of Europe’s surface waters and groundwater bodies currently achieve good ecological or chemical status, underscoring the scale of the pollution challenge. 

Water costs and investment gaps – increasing costs for wastewater treatment

Across Europe, household water use and pricing show wide disparities, reflecting differences in infrastructure, consumption habits and local policy. 

Water use and prices also vary widely. Average household consumption is 125 litres per person per day. Water prices range from about €1.2 per cubic metre in Bulgaria to €9.3 in Denmark, with a European average of around €3.6 per cubic metre. 

Despite these differences, investments in water efficiency and infrastructure remain insufficient, especially in countries with lower tariffs. Sweco’s analysis shows that current water prices in many countries cover only a fraction of the long-term costs required for infrastructure renewal, climate adaptation and advanced treatment of micro-pollutants. 

According to Sweco, implementing quaternary treatment as part of advanced wastewater treatment could increase domestic water costs by around 6%, while broader environmental and societal impacts remain largely unaccounted for. 

“The true cost of water extends far beyond the water bill, encompassing economic, environmental, social and climate-related costs borne by society and nature,” says Mattias Salomonsson, Water Expert at Sweco. 

Solutions and six key actions

Recognising the real, long-term cost of water is essential – not to make it more expensive, but to ensure robust, resilient systems capable of delivering safe water for generations. Sweco’s experts highlight both practical projects and the following six recommended actions: 

1. Make water risk assessments a standard requirement – for spatial plans, permits, infrastructure projects and financing decisions. 

1. Develop municipal water strategies with clear risk analyses for drinking water, wastewater, stormwater and flooding, with contingency plans. 

1. Plan and finance the renewal of ageing infrastructure – prioritising critical assets and securing long-term budgets for PFAS treatment and system upgrades. 

1. Conduct regular water risk and resilience assessments – linking maintenance and investment to risk analysis and reducing non-revenue water. 

1. Integrate water risk into credit, investment and insurance decisions – ensuring water-intensive sectors and municipalities account for deferred maintenance and exposure to droughts or floods. 

1. Use land-use planning and nature-based solutions to reduce risks – protecting recharge zones, avoiding high-risk development and creating urban spaces that store and infiltrate water. 

Water projects in action – fixing Europe’s water systems

The report highlights a range of best practice projects to strengthen water systems across Europe. Here are a few examples: 

Bergen, Norway – Dam safety and flood reassessment
Reassessing key catchments and dams to safeguard drinking water infrastructure and strengthen long-term resilience. 

Waterbank Agriport, Netherlands – Circular rainwater storage
An innovative system storing rainwater from greenhouse roofs and data centres underground for irrigation and cooling, reducing dependence on drinking water. 

Jersey, UK – Strategic plan for resilient water management
Integrating rainwater use and wastewater reuse to increase island resilience against drought and climate change. 

Aartselaar WWTP, Flanders, Belgium – Quaternary treatment of micro-pollutants
Full-scale plant removing pharmaceuticals, pesticides, hormone-disrupting compounds and PFAS from wastewater, enabling future water reuse and strengthening local water quality. 

Europe’s water challenges are real, but Sweco teams are leading the way with innovative solutions, modern treatment technologies and integrated water management. Every project demonstrates how expertise and collaboration can safeguard water supply, ecosystems and public health for generations to come.