How does Invest-NL improve thefinancing of the water transition?

Water is a fundamental necessity for all life on earth. However, the water cycle is disrupted, and worldwide water problems such as flooding, drought, and pollution are increasing. In the Netherlands, less than 1% of our surface water even meets European quality standards. To change this, a water transition is needed, but financing remains a bottleneck. Invest-NL has conducted an exploratory project into freshwater to map out the issues, explore solutions, and define its role in financing the water transition.

In 2023, the strategy expansion of Invest-NL has decided to investigate whether we can also focus on the financing of impact themes biodiversity and water. The research was conducted in collaboration with, among others, financiers, research institutions, entrepreneurs, and government bodies.

The results of the exploration process show that both the quality and quantity of fresh water are under pressure. Invest-NL has identified various solutions, such as improving water quality, promoting circular water use, and making the agriculture sector more sustainable. Additionally, climate adaptation measures, such as natural water storage, can better prepare the Netherlands for the consequences of climate change.

By adding water as a focus area, Invest-NL aims to stimulate change and innovation in the water sector. Financing within this sector is a major bottleneck: water is inexpensive, while the required investments are substantial. Therefore, Invest-NL will invest in enterprises active in this sector. Besides investments in Hydraloop and Paques Biomaterials, we will focus on companies working on solutions for water-related issues, such as water reuse, filtration, and recovery from wastewater.

Furthermore, Invest-NL aims to strengthen the Dutch water sector by identifying and addressing financing bottlenecks with new business models and financial products. Water use and pollution will also be actively monitored within the companies in its portfolio.

The results and insights are summarised in the vision document Water in Transition and can be read extensively in the full report.

Download the vision document ‘Invest-NL Vision on Water - Water in Transition’

Download the report ‘Invest-NL Exploration Process Water’