On 22 March, Confindustria presented the From emergency to water efficiency' document. Elaborated by Confindustria with the support of the Association System, the study addresses the issue of water supply and management, analysing current and future challenges and identifying opportunities and solutions to ensure fair and sustainable access to water for all citizens, agriculture and industry.

The objective is to define a sustainable water service management model, from a social, environmental and economic point of view, to guarantee a safe and reliable water supply to the country.

Context

La sustainable water management represents one of the most relevant issues of our time, which is characterised by a strong not only environmental, but also social and economic significance, because it supports key sectors such as agriculture, industry and tourism.

In this sense, the sustainable water management is also a question of competitiveness: Italy is the third largest country in Europe in terms of water availabilitybut we are seeing a gradual decrease in the average annual amount of water. In 2022, the average availability was just over 221 mm, marking a decrease of over 51% compared to the average recorded over the period 1951-2022 and thus reaching an all-time low point. To this must be added the progressive increase in extreme water-related events: in the period 2010-2021 there were 486 floods and 134 river overflows, affecting 602 municipalities.

Regarding resources and consumption, in Italy the offer of water is not equally distributed across the territory: more than 50% of the surface resources are located in the North, the 40% is equally distributed between the Centre and the Southand 7Approximately % is located in the major islands. The territorial gap also concerns the effectiveness of its management: in fact, there is still a very clear distance in terms of investment capacity between industrial and municipal management, which is especially widespread in the South. Of the 1,465 municipalities in which the management of at least one of the services is delegated to the local authority, 80% is located in the South for a population of about 7.6 million people.

Side questionthe agricultural sector is the most 'water-dependent', using the 41% (i.e. 16 billion m³ in one year) of the total, surpassed in Europe only by Spain. In the civil sector, on the other hand, Italy is first in Europe (24% of the total, with 9 billion m³ each year), with values double those of Germany, but also of countries more similar to us, such as France and Spain. This record is, at least in part, a consequence of waste, but also of a low perceived economic value to end users for the water resource. Industry has a consumption of over 8 billion m³ every year (the 20% of the total), a high value but still decreased by more than half in the last 20 years.

Policy and Actions

The objective of the document "From Emergency to Water Efficiency è defining a sustainable water service management modelfrom a social, environmental and economic point of view, in order to ensuring a safe and reliable water supply to the country system. The document contains 5 proposals on policy aiming to make the sector more efficient:

1. Actions needed to curb water demand

At present there is a strong water leakagerelated to water transfer through canals and non-localised irrigation techniques. This critical issue can be overcome through a series of actions that require significant investment to support the reuse of purified or recovered water in various contexts, from agriculture to industry, such as:

• Making the process of irrigating crops across the country more efficient by providing different modes of water supply according to the needs and peculiarities of different crops;
• createthrough dedicated re-use technologies, special distribution networks in industrial areas and encourage its use by companies. Today in Italy, although it is an economically sustainable solution, the reuse of purified wastewater is only used for 4% compared to the possible 23% of wastewater that can be reused. And, in addition, the recovery of rainwater is not contemplated;
• integrate water supply and distribution systems in the territory making the most of all the water available in a given territory and replacing it, where possible, with natural sources of supply.

In this context, a framework coordinated legislation, based on the "fit-for-use", to fully exploit all possible uses of the treated water.

2. Actions needed to increase water availability and reduce losses

To achieve this, it is essential increase rainwater harvesting capacitycurrently at 11% of potential (5.9 billion m³ out of 54 possible), through interventions on both reservoirs and large dams.

In the first instance, therefore, major investments are needed on several frontsincluding new reservoirs, dam maintenance, groundwater recharge and mapping, and seawater desalination.

Le strategic infrastructure, such as dams, must be preserved and properly maintained. In order to do so, it is important to address the issue of expired and expiring large hydroelectric concessions, providing certainty to operators regarding investments and, at the same time, enhancing the role of hydropower with respect to the European objectives of decarbonising industrial sectors.

Of fundamental importance is the regulatory framework, which must take climate change into account, enhance the contribution of the circular economy to mitigation and adaptation, and promoting water integration projects and sustainable, environmentally friendly construction.

3. Mapping of current investments and networks

It is essential to have a Accurate and faithful mapping of existing infrastructure that it is accompanied by adequate quantification of consumption, withdrawals, discharges and recycling, as well as comprehensive reporting that provides a clear picture of real needs.

It is then necessary to identify the strategic and priority works necessary to mitigate the negative effects of the water crisis. This can be achieved through a mapping of investments, defining an order of priority and indifference in the realisation of urgent works and a strategic investment plan at national and regional level.

4. Actions to foster investment and new governance models

It is necessary to define a adequate investment framework to needs. However, at present we are still far from the necessary level: in fact, to reach the European average per capita investment in the integrated water service, an additional EUR 1.3 billion per year would be needed, of which only a portion is foreseen in the PNRR funds (about EUR 580 million per year for the period 2021-2026).

To meet this challenge, therefore, one must implement actions aimed at fostering investment and governance more efficient, rewarding virtuous managers in the field of innovation and technological efficiency and creating facilitated pathways for the adoption of innovative technologies.

It is then necessary to complete the establishment of the Regional Water Authorities, incentivise business aggregation through a revision of the perimeter of the territorial areas by the regions and ensure the immediate transfer to the regions of the exercise of functions and the maintenance of the same for the entire duration of the concession of the Integrated Water Service.

5. Actions needed to increase available volumes

The available volumes can be increased through a all-round investment strategyfrom infrastructure adaptation to the maintenance and upgrading of the sewerage network and purification plants.

Finally, it is necessary, strengthen the average size of operators in the sector promoting a water sector management according to industrial criteria. The larger the size of the manager, the greater the economies of scale, which are capable of generating efficiency and financial capacity. The objective is build a structured and efficient water supply chain and start considering water after use (civil, industrial, agricultural) as a resource/material to be valorised in the reuse and recycling cycle (purification and feeding).