Europe faces growing long-term risks as flooding, water scarcity and pollution increasingly converge across the continent, according to a new analysis from engineering and architecture consultancy Sweco.

The report, Too much, too little, too polluted, warns that climate-driven weather extremes, ageing infrastructure and declining water quality are creating costs and vulnerabilities that are not fully reflected in current pricing systems or investment decisions.

Drawing on European data and Sweco’s engineering and architectural analysis, the report states that around 20% of Europe’s land and 30% of its population experience water stress each year. Flooding caused an estimated €18 billion in damage during 2024 and affected more than 400,000 people.

At the same time, 32% of groundwater bodies are under pressure from diffuse pollution, mainly linked to agriculture, while pharmaceuticals and PFAS “forever chemicals” are now being detected in most European water bodies.

According to the report, the challenges of flooding, water scarcity and pollution can no longer be treated separately.

“Europe’s water challenge no longer concerns isolated events or individual regions. Sweco’s analysis shows that flooding, scarcity and pollution must be managed as one interconnected system, or the risks will continue to grow and threaten Europe’s water security, public health, infrastructure reliability and economic stability,” said Mattias Salomonsson, Water Expert at Sweco.

The report also highlights concerns over ageing infrastructure and underinvestment in water systems across Europe. Sweco said much of the continent’s water infrastructure was designed decades ago for different climatic conditions and lower treatment demands. In many countries, around 20% of treated water is lost through leakage.

Using pricing data and technical cost modelling, Sweco estimated that introducing advanced treatment to remove micropollutants would increase average water costs by around 6%, with the largest impacts expected in countries where water prices are currently relatively low, including Sweden, Ireland and the Netherlands.

The consultancy argues that the long-term costs associated with flooding, supply disruption, tighter regulation and environmental degradation are not adequately reflected in current water pricing or infrastructure investment strategies.

“The true cost of water extends far beyond the water bill. Failure to consider future flood damage, supply disruptions, stricter regulation and environmental degradation at an early stage means that risks and costs increase over time. However, solutions do exist and across Europe, Sweco is supporting public and private clients in strengthening water systems through long-term planning, risk-based investments and integrated approaches that increase resilience,” said Salomonsson.

The report identifies six priority actions for governments, municipalities, utilities, investors and insurers, including mandatory water risk assessments, long-term municipal water strategies, renewal of ageing infrastructure, resilience-based utility operations, integrating water risk into investment and insurance decisions, and greater use of nature-based solutions in land-use planning.

Sweco said examples of these approaches are already being implemented in several European countries, including advanced wastewater treatment projects in Germany and Belgium, climate-adapted urban spaces in Denmark, circular rainwater storage systems in the Netherlands, drought resilience planning on Jersey, and dam safety and flood reassessment work in Norway.

Read more in the report viewable at this link.