Production of alternative water resources for purposes other than human consumption
Construction, extension, operation and renewal of facilities for producing reclaimed water(39), facilities for harvesting rain and storm water and facilities for collection and treatment of grey water(40).
These alternative water resources are used to replace water from abstraction or from the drinking water supply systems and can be used for aquifer recharge, irrigation, industrial reuse, recreation and any other municipal use.
The economic activity only includes the facilities and processes that make it possible for the water to be reused, such as facilities for recharging aquifers or surface water storages, and does not include the previous steps, such as primary and secondary steps in the waste water treatment plant or the subsequent steps, necessary for the final reuse of these alternative water resources, such as irrigation systems.
The economic activity does not include desalination (see Section 5.13. of Annex II to Delegated Regulation (EU) 2021/2139).
This economic activity does not include supply of water for the purpose of human consumption (see Section 2.1. of Annex I).
The economic activities in this category could be associated with several NACE codes, in particular E37.00 and F42.9 in accordance with the statistical classification of economic activities established by Regulation (EC) No 1893/2006.
Substantial contribution
This activity can make a substantial contribution to the following objective(s). The activity must also pass DNSH assessment against the remaining five objectives.
✓ Circular economy
1. For production of reclaimed water, the activity complies with the following criteria:the reclaimed water is suitable for reuse. For use in agriculture, the reclaimed water complies with EU requirements, such as those set out in Regulation (EU) 2020/741 of the European Parliament and of the Council(41) and national legislation. For uses other than agricultural irrigation, the final quality of reclaimed water is fit for purpose and compliant with existing national legislation and standards;the water reuse project has been authorised by the competent authority, in the framework of integrated water management, having as a priority taken into account viable water demand management and efficiency measures, in consultation with the water management authorities. This may be proven by its inclusion in a water management plan or drought management plan. For reuse in agriculture, the assessments of the environmental risks, including those related to the quantitative status of water bodies, are fully taken into account in the risk management plans, required by Regulation (EU) 2020/741. 2. For facilities for harvesting rain and storm water, the activity complies with the following criteria: the resource (rain or storm water) is segregated at source and does not include waste water;the water is suitable for use after proper treatment depending on the level of contamination and subsequent use;the facility is included in an instrument of urban planning or permitting, such as Master Plan or municipal planning.3. For facilities for collection and treatment of grey waters, the activity complies with the following criteria:the resource (grey water) is segregated at source;the water is suitable for reuse after proper treatment depending on the level of contamination and subsequent reuse;the performance is attested by a building certification or is available in the technical design documents.
Do No Significant Harm criteria
To be taxonomy-aligned, this activity must not significantly harm any of the five objectives it does not substantially contribute to.
Climate change mitigation
For the production of reclaimed water, an assessment of the direct GHG emissions from the reuse treatment, has been performed(42). The results are disclosed to investors and clients on demand.
Documentation typically required
- Assessment of direct GHG emissions from reuse treatment — Must be performed; results disclosed to investors and clients on demand.
Climate change adaptation
The activity complies with the criteria set out in Appendix A of the applicable Delegated Act.
Water and marine resources
The activity complies with the criteria set out in Appendix B of the applicable Delegated Act.
Pollution prevention and control
For the uses prescribed in the EU Regulation (EU) 2020/741, the activity complies with that Regulation or with applicable national legislation where it is stricter. Aquifer recharge and infiltration of surface runoff waters comply with the Directive 2006/118/EC or with applicable national legislation where it is stricter.
Biodiversity and ecosystems
The activity complies with the criteria set out in Appendix D of the applicable Delegated Act.
Criteria sourced from the EU Taxonomy Navigator. Applicable act: Climate Delegated Act (OJ L 442, 9.12.2021). Last verified: 19 July 2026.
Related reading: EU Taxonomy explained · Evidence sustainability auditors look for
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