Climate change raises costs of water supply – German utility associations

Climate change-related investments in Germany’s water supply are set to increase substantially over the coming years, shows a report by two associations as seen by business daily Handelsblatt.

German operators currently invest around 4.5 billion euros each year in public water supply. According to the pilot study by energy industry association BDEW and the German Association for Gas and Water (DVGW), utilities invested between one and 19 percent in climate-related measures over the past ten years. Larger urban utilities reported higher shares than smaller or rural ones.

Over the coming decade, this share is expected to rise to 7 – 30 percent of total investments, the report said. According to the associations, this would result in investments of between 3.2 billion euros and 13.5 billion euros.

Due to climate change effects, water networks and facilities need to be expanded to secure the water supply during dry periods. At the same time, flood and heavy rain risks as well as rising average temperatures require increasingly complex technical solutions for infrastructure.

Climate change is putting Europe’s water resources under immense pressure. Scientists expect heavy rain and dry periods to happen more often, be more severe, and last longer, leading to floods and droughts. Without swift mitigation and adaptation measures, not only will ecosystems and public water supply be under threat, but so will agriculture, inland navigation, and power production. While there are international cooperation bodies, legislation, and action plans in place, EU policy to adapt water resources to climate change often struggles on implementation or cross border funding.