Shayp Blog

What a Trump presidency means for the water industry in Europe

Written by Agnes Aasmaa | Dec 3, 2024 2:25:02 PM

Under Donald Trump’s presidency, the United States may shift its water management policies, leaving Europe at a pivotal moment. The EU has launched the Blue Deal initiative, a comprehensive set of recommendations for a sustainable water policy for Europe. However, the influential and market-driven U.S. may challenge Europe's environmental ambitions. 

Could these contrasting paths create friction or opportunities for the European water industry? 

U.S. Policy Shifts and their global ripple effect

The United States has an unparalleled influence on world affairs, emanating from its economic power, military strength, and far-reaching network of allies. As such, any changes in U.S. policy will have ripple effects around the world, reordering priorities and strategies globally. 

During the presidency of Donald Trump, the pullout of the United States from the Paris Climate Agreement had a far-reaching impact on international climate governance. By pulling out of the agreement, the U.S. undermined the universality and leadership of the accord, setting a precedent that encouraged delays in climate commitments by other nations. This decision increased the burden on other countries to curb emissions and raised mitigation costs.

Trump and the water industry

Indeed, during his first term in office, President Donald Trump introduced policies that dramatically affected the water industry, generally in terms of deregulation and emphasizing short-term economic interests. His administration rolled back hundreds of environmental protections, including several water-related regulations. Among these, Trump rolled back restrictions on water pollution from industrial and power plants, which had placed limitations on toxic discharges into public waterways. The administration withdrew various water efficiency standards covering appliances such as water heaters, showerheads and washing machines serving residential and commercial markets.

While these actions reflected his broader agenda to reduce regulatory burdens on businesses, they raised serious concerns about the long-term impacts on water quality and human health.

At the same time, Trump made some bold claims about modernizing America's water infrastructure. In his words:

"America's water infrastructure must be effectively managed and modernized to meet the needs of current and future generations of Americans." - President Donald J. Trump.

His administration unveiled a plan to improve water management, promote innovative data-driven solutions, and ensure clean water through source protection and treatment. Yet, despite these steps, the general trend of deregulation has raised concerns over the long-term sustainability of U.S. water systems.

Looking ahead to his second term, it is likely that the lessons from his first term will shape his approach to water policy, with a continued emphasis on deregulation, privatization, and a market-driven approach to water management.



Credit: Doug Mills/The New York Times


Current water industry challenges in Europe

The report "Europe's State of Water 2024" by the European Environment Agency (EEA) pointed out increased concern for water resiliency, pollution, and management of water. Climate change drives more frequent extreme weather, from flooding to drought, affecting 30% of Europe's population annually. According to the EEA, reducing water consumption and improving water efficiency are at a high level of priority.

Europe’s “Blue Deal” Vision

Meanwhile, the EU Blue Deal's sustainable water policies differ significantly from those the United States might pursue. In the context of climate-driven water challenges affecting Europe, the Blue Deal calls for the renewal and modernization of water infrastructure toward resilience and sustainability. Supported by European leaders, this initiative sets higher water quality standards, resource efficiency, and investments in state-of-the-art digital monitoring.

Implications for European water industry stakeholders

The stakeholders of the European water industry will have to face the changing global scenario in case the U.S. moves towards deregulation and privatization. Though opportunities may arise, challenges in terms of environmental standards, investment, and collaboration stay. 

  1. Environmental Standards: Europe is expected to maintain stricter water quality and pollution controls, but potential policy shifts in the U.S. could put pressure on European companies operating in both regions as they may need to align with differing standards.

  2. Investment Landscape: Europe's continued commitment to updating its water infrastructure will provide growth opportunities for smart monitoring, leak detection, and water recycling technologies. Companies in the United States might also see a new shift toward privatization that can change the competitive dynamics in the global market.

  3. Collaborative Opportunities: Diverging policies between Europe and the U.S. could spur further collaboration within Europe to strengthen water resource protection and lead the charge on sustainable infrastructure. Companies with a strong sustainability focus could also benefit in markets where environmental standards remain a priority.

 

Shayp’s perspective

In a world of rapid change, Shayp's focus remains on the core mission: improving water efficiency and reducing water waste. Global political shifts may bring challenges, but Shayp sees them as an opportunity to raise awareness of the importance of sustainable water management. In times of great uncertainty, innovations like Shayp's are vital in building resilience and ensuring water efficiency across sectors.

Grégoire de Hemptinne, Cofounder and CEO

“While from a business perspective, water management might not seem the most critical industry to invest in at first sight, the tremendous impact of not taking care of the water resource outweighs by far the opportunity cost of doing nothing. Robust water resource management is critical for business continuity. A lack of investment today can lead to trillions of euros of additional costs to society in a decade from now. For this reason I highly encourage a deep and sustainable plan to refinance the water industry” 

Conclusion: Should Europe's water industry worry?

Instead of expressing concern, Europe now needs to raise its leadership, as it has already done by establishing the commissioner on water resilience. In every respect, the EU can forward the EU Blue Deal: investing in innovation and transboundary cooperation, upholding high international standards that would make sustainable water policy a strategic concern. These efforts will enable Europe to overcome challenges and ensure that sustainable water policy remains a strategic priority, minimizing the impact of external policy shifts, including those from the U.S.

Can Europe become the world leader in the management of water and a model of sustainable development? What do you think?


About the author

Agnes Aasmaa is a digital marketer and the author of many articles dealing with environmental problems. With a sales and marketing background, added to volunteer work in plastic recycling, Agnes has brought together her professional experience and commitment to making a difference.