Belgium’s three regions have reached an agreement with the European Commission to strengthen measures against water pollution, improve wastewater treatment and increase protection against floods and droughts.

The joint statement, signed in Leuven on Monday, 19th October, sets out commitments for Flanders, Wallonia and the Brussels-Capital Region, including action on industrial pollution, pesticides and persistent chemicals such as per- and polyfluoroalkyl substances, commonly known as PFAS.

The agreement was signed by European Commissioner for Environment, Water Resilience and a Competitive Circular Economy Jessika Roswall, Flemish Environment Minister Jo Brouns, Walloon Environment Minister Yves Coppieters and Brussels State Secretary Ans Persoons.

According to the European Commission’s announcement, the agreement follows a detailed examination of Belgium’s implementation of European water legislation and identifies measures requiring greater attention from regional authorities.

European Commission seeks faster implementation

Belgium is the second EU Member State to complete a structured dialogue under a Commission initiative launched in November 2025.

The process is intended to improve implementation of existing environmental requirements rather than establish an entirely new legislative framework.

European water legislation already obliges Member States to assess the condition of their rivers and groundwater, control pollution and prepare management plans intended to improve water quality.

However, achieving the objectives of the EU’s Water Framework Directive remains difficult in several countries, particularly where pollution, agricultural activity and urban development place competing demands on water resources.

Belgium presents additional administrative complications because responsibility for environmental policy and water management is divided principally between three regional governments.

Watercourses also cross regional and international boundaries, requiring cooperation with neighbouring countries.

The Commission’s review examined Belgium’s third generation of river basin management plans and its second generation of flood risk management plans.

Technical discussions identified areas where implementation could be accelerated, particularly regarding pollution controls, water efficiency and coordination between public authorities.

Flanders to address industrial pollution

Under the agreement, Flanders will prioritise investment in water resilience and stronger action against industrial pollution.

The region intends to use its IMPULSE programme to support improvements in water management and pollution reduction.

Industrial discharges are among the issues specifically identified for closer scrutiny.

The joint statement calls for more systematic reviews of permits governing water abstraction and industrial wastewater discharges, particularly where existing activities place pressure on rivers and groundwater.

The agreement also highlights the need to tackle persistent chemical pollution.

PFAS have become a significant environmental concern because many of these substances degrade extremely slowly and can accumulate in water, soil and living organisms.

Certain PFAS compounds have been associated with adverse health effects, although the risks depend on the individual chemical, exposure level and duration.

The Commission’s commitments include stronger action on PFAS and pesticides, alongside improvements in monitoring and pollution prevention.

Agricultural pollution is another area requiring attention.

Fertilisers and pesticides can enter rivers and groundwater through runoff or infiltration, creating difficulties for water treatment and contributing to the deterioration of aquatic ecosystems.

The three regions have agreed to strengthen cooperation with farmers, retailers and researchers to support more sustainable agricultural practices, including expanding markets for organic products.

€300 million for river restoration in Wallonia

Wallonia has committed to continuing investment in river restoration and improved water resilience, with particular attention to the Vesdre basin.

The region intends to use a €300 million loan secured from the European Investment Bank in 2025 to support restoration work.

The Vesdre basin experienced severe flooding in July 2021, when widespread destruction across eastern Belgium exposed weaknesses in flood protection and the management of vulnerable river valleys.

Restoration measures can include improving river channels, reconnecting floodplains and using natural systems to retain water during periods of heavy rainfall.

The regional authorities also intend to support industrial companies investing in water-efficient production technologies and environmental innovation.

These measures are intended to reduce pressure on water resources while helping businesses adapt to changing environmental requirements.

Wallonia has additionally committed to supporting cleaner agricultural practices, consistent with the wider national objective of reducing pollution from fertilisers and pesticides.

Brussels focuses on wastewater treatment

The Brussels-Capital Region will concentrate on improving water governance and wastewater treatment.

Urban wastewater infrastructure is particularly important in densely populated areas, where drainage networks and treatment facilities must accommodate domestic sewage, commercial activity and rainfall.

Heavy precipitation can place additional pressure on combined sewer systems, potentially increasing the risk of untreated or insufficiently treated wastewater entering natural watercourses.

Improving treatment capacity and water management requires investment in infrastructure, monitoring and coordination between the authorities responsible for sanitation and environmental protection.

The Brussels commitments therefore form part of the wider European effort to modernise urban wastewater systems and improve the ecological condition of rivers passing through major cities.

Cross-border water management

The agreement also identifies the need for closer cooperation in the Scheldt and Meuse river basins.

Both river systems cross national boundaries, making their management dependent on coordination between Belgium and neighbouring countries.

Regional governments have committed to supporting the restoration of floodplains and the removal of barriers affecting shared watercourses where appropriate.

The measures are intended to improve the condition of aquatic ecosystems while strengthening natural protection against floods and droughts.

The Commission will support Belgium through initiatives under the European Water Resilience Strategy, including research, digital technologies, technical expertise and assistance in mobilising public and private investment.

However, the joint statement signed in Leuven does not itself establish a new binding regulatory regime or guarantee that all the investments identified will be financed.

Its importance will depend on whether the three regional governments translate their commitments into funded projects, revised permits and measurable improvements in water quality.

For the European Commission, Belgium’s agreement is also part of a wider programme of structured discussions with Member States on compliance with EU water legislation. Further national dialogues are expected as Brussels seeks to improve implementation across the Union.

The European Investment Bank and BNP Paribas have agreed a €700 million guarantee programme designed to expand financing for European companies producing equipment for electricity grids.

The agreement targets a growing bottleneck in Europe’s energy system: manufacturers of transformers, cables, switchgear and other components are being asked to increase production while utilities and governments accelerate investment in transmission and distribution networks.

Under the deal, the EIB will provide up to €350 million in counter-guarantees, while BNP Paribas will commit an equivalent amount. The resulting €700 million portfolio of bank guarantees is expected to support companies investing in additional production capacity and supply contracts.

The European Investment Bank said the arrangement could stimulate as much as €2.8 billion in investment in the real economy.

The initiative is backed by the EU’s InvestEU programme and forms part of the EIB’s €1.5 billion Pan-EU Power Grid package. Guarantees are particularly important for infrastructure suppliers because large electricity projects often require manufacturers to provide financial guarantees before receiving contracts.

Those commitments can consume bank credit lines that companies might otherwise use to build factories, purchase machinery or finance working capital.

By sharing the risk with BNP Paribas, the EIB intends to increase the volume of guarantees available without requiring manufacturers to commit equivalent amounts of their own financing capacity.

The programme arrives as grid investment becomes one of the central constraints on European energy policy.

The EU is simultaneously attempting to expand renewable generation, electrify transport and industry, increase cross-border electricity trading and reduce dependence on imported fossil fuels.

All require additional transmission and distribution capacity. EU Today reported earlier this year that the EIB had approved almost €2 billion for clean energy and grid projects as part of a broader €10 billion financing package.

The latest BNP Paribas agreement concentrates specifically on the industrial supply chain needed to build those networks.

Grid investment is increasingly influenced by security concerns as well as electricity demand.

EU Today reported last week that Lithuania is designing part of the Harmony Link infrastructure to withstand drones, sabotage and vehicle attacks near the Russian exclave of Kaliningrad. Such requirements increase the cost and complexity of new electricity infrastructure while demand for conventional grid equipment is already rising.

European manufacturers face lengthy order books for some high-voltage equipment, particularly large transformers and specialised cables. Supply constraints can delay renewable projects and interconnectors even when planning permission and financing are available.

The EIB says its guarantee programme is intended to give manufacturers greater financial capacity to respond. The arrangement follows a similar partnership between the bank and BNP Paribas covering wind-energy manufacturing.

In February 2025, the two institutions agreed a €1 billion guarantee portfolio intended to support investment in the European wind industry. The EIB has subsequently expanded its focus from generation equipment to the networks required to transport electricity.

In 2025, the EIB Group invested €33 billion in energy projects worldwide, including €11.6 billion in grids and storage, according to the institution.

European energy policy has increasingly recognised that adding generating capacity without expanding grids can create congestion, delays and periods in which renewable electricity cannot reach consumers.

Political disagreements remain over how new infrastructure should be planned and financed.

In June, EU Today reported that member states had pushed back against stronger Brussels control over cross-border grid planning, preferring to preserve a significant role for national authorities.

Financing institutions are meanwhile moving ahead with programmes intended to expand the underlying industrial capacity.

For manufacturers, the EIB–BNP Paribas scheme does not provide €2.8 billion of direct public spending. Instead, public guarantees are being used to increase the volume of private financing available, with the EIB assuming part of the risk.

The distinction is central to InvestEU, which uses EU budget guarantees and EIB financing to attract additional private capital.

Europe’s electricity transition is increasingly dependent on this less visible part of the energy system. New wind farms, solar installations, nuclear reactors and industrial electrification projects ultimately require the same infrastructure: sufficient cables, substations, transformers and transmission capacity to move electricity from producers to users.