Water risks in Europe are reaching Finland and the Nordics

May 6, 2026

Europe’s drinking water and wastewater systems are under increasing pressure from extreme weather, rising demand, pollution and ageing infrastructure. Flooding, water scarcity and declining water quality are occurring more often at the same time, yet their combined impacts are still not fully reflected in today’s pricing or investment decisions.

A Europe-wide analysis by Sweco shows that water-related risks are no longer limited to Southern and Central Europe. They are now also affecting Finland and the Nordic countries. Climate change, ageing infrastructure and stricter quality requirements are beginning to challenge Nordic water systems, even though the region has long been seen as stable from a water resource perspective.These risks are becoming more visible in the form of urban stormwater flooding, seasonal water scarcity, groundwater quality challenges and a growing maintenance backlog in water infrastructure.

Water risks also have a clear economic dimension. Water stress refers to a situation where demand exceeds available resources or where water quality limits its use. Already, around one third of Europe’s population lives in areas affected by water stress during part of the year. In 2024, flooding affected more than 400,000 people across Europe and caused approximately 18 billion euros in damages. At the same time, 32 percent of Europe’s groundwater is under pressure from diffuse pollution from agriculture, and micropollutants are increasingly detected in most water bodies.

“The exceptionally dry spring in Finland illustrates that water risks are no longer isolated or regional. In addition to drought periods, changing winter conditions are reducing groundwater recharge. Beyond availability, water security is also about the ability of systems to withstand extreme weather and meet new quality and supply requirements. Our analysis shows that these risks are becoming more frequent in the Nordics. It challenges the long-held perception of the region as permanently water-secure,” says Jussi Mäenpää, Director of Water Engineering at Sweco.

A growing gap between price and real cost

In Finland, water-related risks are already visible in urban stormwater flooding, the increasing maintenance backlog of ageing infrastructure, and small, dispersed groundwater resources exposed to contamination risks. Managing these risks requires long-term investment that is not covered by current water tariffs. Much of today’s water infrastructure was built decades ago for a different climate and lower treatment requirements. On average, around 20 percent of treated water is still lost through leakage and system inefficiencies before reaching end users.

A key finding of the analysis is that current water tariffs do not reflect the true long-term cost of water services. This does not in itself justify raising water prices or restricting access, but it highlights the need for better-informed decision-making and more strategic investment in water infrastructure. Stricter treatment requirements, such as advanced removal of micropollutants, are expected to increase costs in Europe by around six percent. The impact is likely to be greatest in countries where water prices have traditionally been relatively low, including Finland.

“The true cost of water extends far beyond the water bill. If droughts, flooding, supply disruptions, water quality issues and tightening regulation are only addressed after they occur, the result is higher costs and increased societal risk. The real risk is not the price of water, but the risk that water is unavailable, unsafe, or in the wrong place,” Mäenpää says.

Urban Insight is a series of insight reports written by Sweco experts on various aspects of urban development from a citizen perspective. This year’s report focuses on water and water resilience in Europe.

Inquiries:
Jussi Mäenpää, Director of Water Engineering, Sweco, Tel. +358 50 404 3027, jussi.maenpaa@sweco.fi
Tiina Varhee, Media contact, Sweco, Tel. +358 40 474 1231, ext.tiina.varhee@sweco.fi