Europe needs to use water much more efficiently to avoid undermining its economy, according to a new report from the European Environment Agency (EEA).

Inefficient water use impacts hard on the resources needed by ecosystems and people, both vital assets for European productivity and security.

The report ‘Towards efficient use of water resources in Europe’ makes the case for integrated water management, starting with better implementation of existing legislation.

EEA Executive Director Jacqueline McGlade said:

“Water resources are under pressure in many parts of Europe, and it is getting worse.

“Agriculture, energy production, industry, public water supply and ecosystems are all important, and all competing for this limited resource. With climate change making water supply less predictable, it is extremely important that Europe uses water more efficiently for the benefit of all its users. Water resources should be managed as effectively as any other natural asset owned by countries.”

Water shortages have severe consequences for economies reliant on agriculture and industry. There are also indirect effects on the economy, as reduced river flows, falling lake and groundwater levels, and disappearing wetlands can have destructive effects on the natural systems underpinning economic productivity.

In the agriculture sector, some estimates calculate that approximately a quarter of water abstracted for irrigation in Europe could be saved, just by changing the type of pipe or channel used. Public water supply can also be made more effective - as much as 50% of drinking water is lost in some EU Member States.

Inefficient use of water leads to higher energy use, with extra financial and environmental costs, according to the report. While the energy needed to pump and treat freshwater into drinking water is typically around 0.6 kWh/m³, desalination of seawater adds approximately 4 kWh/m³. 

The report also says that authorities should set clear environmental targets for water use, within the limit of what is sustainable. Such targets would differ depending on the available resources, but should be designed so that the natural environment has sufficient water to function. A form of ‘decoupling’ is needed so that increasing economic productivity does not entail increasing water use and increasing environmental impacts.

The report also stresses how effective use of taxes, subsidies, market mechanisms, pricing schemes and other economic instruments can help balance conflicting demands on water.

Later this year, the ‘Blueprint to safeguard Europe’s waters’ published by the European Commission will map the way forward for legislation in this area. Throughout 2012 the EEA will release a series of reports on related water issues, exploring the challenges and opportunities in this area.

Read the report here.