Water supply
Construction, extension, operation, and renewal of water collection, treatment and supply systems intended for human consumption based on the abstraction of natural resources of water from surface or ground water sources.
The economic activity includes abstraction of the water resource, necessary treatment to make the quality of water compliant with the applicable legislation and distribution to the population and food business operators in piped systems.
The economic activity does not cover irrigation and abstraction of water resources for desalination of marine or brackish water.
The economic activities in this category could be associated with several NACE codes, in particular E36.00 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.
✓ Water
1. For the operation of an existing water supply system providing water supply in a sufficient and healthy quality to consumers, and contributing to water resource efficiency, the activity complies with the following criteria: the water supply system complies with Directive (EU) 2020/2184, Commission Implementing Decision (EU) 2022/679(3), and delegated and implementing acts adopted under that Directive;the leakage level of the system is either calculated using the Infrastructure Leakage Index (ILI)(4) rating method and the threshold value equals to or is lower than 2.0, or is calculated using another appropriate method and the threshold value is established in accordance with Article 4 of Directive (EU) 2020/2184. That calculation is to be applied across the extent of a specified part of a water supply (distribution) network, i.e., at water supply zone level, district metered area(s) (DMAs) or pressure managed area(s) (PMAs);the water supply systems include metering at consumer level, where water is delivered to a contractual delivery point of the consumers’ own drinking water distribution system.2. For the construction and operation of a new water supply system, or an extension of an existing water supply system that provides water to new areas or improves that water supply to existing areas, the activity complies with the following criteria:the water supply system complies with Directive (EU) 2020/2184, including the requirements set out in Article 13(8) of that Directive, in Implementing Decision (EU) 2022/679, and in delegated and implementing acts adopted under that Directive;the leakage level of the new or extension system is either calculated using the Infrastructure Leakage Index (ILI) rating method and the threshold value equals to or is lower than 1.5, or is calculated using another appropriate method and the threshold value is established in accordance with Article 4 of Directive (EU) 2020/2184. That calculation is to be applied across the extent of the affected and specified part of a water supply (distribution) network where the works are carried out, i.e., at water supply zone level, district metered area(s) (DMAs) or pressure managed area(s) (PMAs);the water supply system includes metering at consumer level, where water is delivered to a contractual delivery point of the consumers’ own drinking water distribution system.3. For renewal of existing water supply systems, the activity complies with the following criteria:the activity closes the gap by at least 20% either between the current leakage level averaged over three years, calculated using the Infrastructure Leakage Index (ILI) rating method and an ILI of 1.5, or between the current leakage level averaged over three years, calculated using another appropriate method, and the threshold value established in accordance with Article 4 of Directive (EU) 2020/2184. The current leakage level averaged over three years is calculated across the extent of the affected and specified part of a water supply (distribution) network where the works are carried out i.e., for the renewed water supply (distribution) network at district metered area(s) (DMAs) or pressure managed area(s) (PMAs);a plan with goals and timelines for implementing metering at consumer level is issued by the water supplier and approved by the competent authorities.4. The water supply system has received the necessary permits for water abstraction. Those abstractions are included in the register for water abstractions, in accordance with Directive 2000/60/EC. An assessment of the actual potential for abstraction has been performed, to ensure that the available groundwater resource is not exceeded by the long-term annual average rate of abstraction or that the surface water body from which water is abstracted is not prevented from achieving good ecological status and ecological potential and the abstractions do not deteriorate status or potential of those water bodies. The operation of the water supply system does not result in a deterioration of the status of the affected water bodies, nor does it prevent the water body from achieving good status and good ecological potential in accordance with Directive 2000/60/EC(5). The information in relation to the abstractions, register of abstractions, status of water bodies and pressures and impacts on these is included in a river basin management plan, or, for activities in third countries, in an equivalent water use and protection management plan. The activity does not involve construction of new supply systems or extensions of existing supply systems where they potentially affect one or more water bodies which are not in good status or potential for reasons related to quantity.
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
N/A
Climate change adaptation
The activity complies with the criteria set out in Appendix A of the applicable Delegated Act.
Circular economy
N/A
Pollution prevention and control
N/A
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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