Business groups in Netherlands fear “waterlock” risk

The one country in Europe where you would not have thought risk managers would have to worry about water supply is the Netherlands, but that is exactly the risk that two of the nation’s business associations have written to the government on as Dutch risk managers gathered for the annual Narim conference. Employer groups VNO-NCW and MKB-Nederland said in a letter to the House of Representatives, in anticipation of a debate over water later this month, that the country faces the danger of “waterlock” and action must be taken fast to rise to the risk. “We must ensure that the Netherlands does not end up in a waterlock. The rollout of smart water meters, more water collection and faster permitting, among other things, play a crucial role in achieving this,” they said in the joint letter. The groups said that, like the electricity grid, the nation’s water supply is now also squeaking and creaking at the seams. Production of food, medicines and even manufacturing materials are at risk, they claim. “The supply of drinking water is under severe pressure, as is its quality. Due to climate change, the Netherlands must also provide new measures to adapt to changing circumstances with (longer) periods of both drought and extreme rainfall and with more water collection,” said the groups. Seventy percent of the drinking water in the Netherlands is used by households and in the summer this is often much more. In order to ensure greater awareness of water use, the business organisations argue in their letter, among other things, for the rollout of smart water meters among households and companies. The National Drinking Water Conservation Action Plan is being implemented to take advantage of opportunities in the business community to save more water. The aim of this is to save 20% water in 2035 together with drinking water companies, governments and water boards (compared to the period 2016-2019). To this end, the potential in various sectors is further mapped out. A first pilot for this is already running in the catering sector, explained the groups. "Although the business community only uses 30% of the drinking water, it is crucial for the production of, for example, our food, our medicines and the manufacturing industry that we together secure access to sufficient drinking water," the business organisations said. As in many other areas, bureaucracy and permit delays is a problem, said VNO-NCW and MKB-Nederland. For many drinking water projects (for expansion or for new sources), the regional permitting currently takes ten to 15 years. "To prevent the Netherlands from truly becoming a waterlock, this must be accelerated considerably in the near future," the business organisations said. They are therefore asking the government to make non-binding agreements with provinces to speed up the permit processes. The government can also explore whether they can declare some drinking water projects as projects of “national importance”, they said. The letter also focuses on increasing the quality of the nation’s water (by, among other things, implementing the WFD Business Action Program) and to climate adaptation. For example, new water storage facilities (so that less water needs to be drained to the sea) can also be used for nature and recreation, said the two groups. In the letter, the business organisations further argue that the government should abandon its plan to adjust the Dutch temperature requirements for cooling water discharges. “This can lead to major problems for electricity production and in industry. The Netherlands is also completely out of line with such an approach compared to neighbouring countries such as Germany,” said the groups.

Business groups in Netherlands fear “waterlock” risk

Want to read this article?

Read Next

EU Data privacy claims filed against six Chinese firms

Singapore general insurance market set to ‘thrive’

German insurers demand clarity on DORA

Munich Re predicts slower growth and higher inflation over the next decade

Litigation expected to be even bigger US risk in 2025

EU Data privacy claims filed against six Chinese firms

Singapore general insurance market set to ‘thrive’

German insurers demand clarity on DORA

Munich Re predicts slower growth and higher inflation over the next decade

Litigation expected to be even bigger US risk in 2025

Keep yourself informed

Sign up for Commercial Risk’s newsletters

Want to read this article?

Read Next

EU Data privacy claims filed against six Chinese firms

Singapore general insurance market set to ‘thrive’

German insurers demand clarity on DORA

Munich Re predicts slower growth and higher inflation over the next decade

Litigation expected to be even bigger US risk in 2025

Related Articles

Keep yourself informed

Sign up for Commercial Risk’s newsletters