Valencia floods prompt race for funds to boost Spain's climate resilience

6/2/2025 16:20

Spain is seeking European approval to repurpose more than a billion euros of post-pandemic recovery funds to make Valencia more resilient against climate change after the Mediterranean region suffered catastrophic heavy rains last year.



The talks started a few weeks after torrential rains caused floods in October that killed over 220 people in commuter towns to the east of Valencia. Experts say the disaster was worsened by patchy flood defences, many of which had been earmarked for improvement works decades earlier.



Reallocated EU funds would be a small part of what companies such as Spain's Acciona, Sacyr and Cox Group expect to be a new wave of investment in the water business in Spain.



Such companies have largely been active in countries facing water stress such as Saudi Arabia and Morocco, but now finding solutions for the problems at home presents opportunities for growth - as well alleviating some of the misery wrought on communities.



Water investments have moved up the political agenda at a local and national level, industry insiders, corporate officials and experts told Reuters.