Water Europe is pleased to release its latest Position Paper on the Omnibus I package and legislation on sustainability, addressing the potential implications of the proposed legislative changes on water-related investment and sustainable finance in Europe.
The Omnibus package, part of the European Commission’s drive to reduce reporting burdens and streamline legislation, aims to simplify EU rules and stimulate investment. While these objectives are welcome, Water Europe raises critical concerns about the risk of losing access to essential water-related sustainability data – a cornerstone for evidence-based financial decision-making and long-term resilience.
Water Europe’s Position Paper, titled “Omnibus Legislation on Sustainability: Possible Impact on Water Financing”, outlines how the current proposals may unintentionally weaken the regulatory infrastructure necessary to mobilise €255 billion in water-related investments required by 2030. Water-intensive sectors such as agriculture, manufacturing, ICT, and data infrastructure all stand to be affected by gaps in reporting, lack of transparency, and reduced taxonomy coverage.
A Call for coherent, water-inclusive legislation
In this context, Water Europe urges EU policymakers to ensure that the Omnibus reforms do not dilute key mechanisms such as the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS), particularly ESRS E3, which plays a foundational role in water governance.
The paper puts forward 9 key recommendations to support effective, inclusive, and water-smart implementation of the Omnibus reforms, including:
-Maintaining robust sustainability reporting across company sizes, including SMEs, through simplified but mandatory disclosures.
-Embedding water resilience objectives into the EU Taxonomy Regulation and expanding its scope beyond utilities to encompass sectors such as agriculture, textiles, and data infrastructure.
-Developing water-specific KPIs and technical criteria to strengthen transparency and guide investment toward sustainable water solutions.
-Avoiding water finance blind spots by aligning financial tools and standards with the real needs of the water transition.
Why it matters
Water is rising fast on the sustainable finance agenda. As Europe faces growing challenges from water scarcity, pollution, and infrastructure gaps, ensuring data integrity, financial visibility, and smart regulation becomes vital. This Position Paper reinforces Water Europe’s commitment to achieving a Water-Smart Society by ensuring that regulatory simplification supports the transition to a sustainable, resilient future.
Read the full Position Paper here
