Water industry opens taps for £2.8bn into green recovery

An initial £850 million in Ofwat funding is set to support green investment plans across the UK’s water sector

The Big Zero report

A massive £2.8 billion investment will be made by the water industry in a bid to accelerate the sector’s green recovery.

Ofwat announced today that an initial £850 million in funding will support environmental projects while a further £1.9 billion package will be invested in the coming years.

Severn Trent Water, South Staffs Water, South West Water, Thames Water and United Utilities are among the companies that will benefit from the Ofwat announcement.

This investment will support projects designed to tackle the harm caused by storm overflows.

The new projects will also see utilities working together with local partners to shrink flood risk and cut pollution with nature-based measures.

Solutions that reduce the use of energy and chemicals in drinking water treatment will also be prioritised.

David Black, Interim Chief Executive at Ofwat, said: “Today marks an important step in this country’s green economic recovery with the water sector stepping up to make a difference.

“As part of these measures, we will see a collective package worth £2.8 billion of new investment and accelerated expenditure to care for the environment, create jobs and support customers and communities to bounce back from the Covid-19 pandemic.”

Environment Agency chair Emma Howard Boyd said: “The green recovery is an opportunity to go further on net zero, nature-based solutions and environmental protection. It is hugely encouraging to see water companies accelerate investment to deliver real and lasting improvements.”

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