EIF Invests €30 Million in PureTerra II to Scale Water Technology and Climate Resilience

The European Investment Fund (EIF) has committed €30 million to PureTerra II, a Netherlands-based venture capital fund focused on scaling innovative water technologies across Europe. Announced on 26 October 2026, the investment, supported by the European Commission's InvestEU program, aims to help early-stage businesses move from pilot projects to full-scale industrial deployment. The fund will target solutions that address water scarcity, pollution, resource efficiency, and climate resilience, strengthening Europe's water security and industrial competitiveness.

 

The commitment comes as European industries face increasing pressure from droughts, declining water availability, and stricter environmental requirements. According to the European Commission, meeting existing EU water regulations requires approximately €23 billion in additional annual investment. PureTerra II aims to close this funding gap by mobilizing private capital for technologies that improve water treatment, enable wastewater reuse, prevent pollution, and support circular water management. The parties ceremonially signed the investment during European Water Technology Week in Leeuwarden, Netherlands, highlighting the growing importance of water infrastructure to Europe's economic resilience.

 

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One of Europe's early venture capital teams specializing exclusively in water technology manages PureTerra II. Its predecessor, PureTerra Ventures I, also received a €30 million EIF commitment and subsequently closed with €73 million in total commitments, building a portfolio of 14 water technology companies. The new fund will focus on businesses with technologies ready for commercial expansion, particularly those addressing industrial water efficiency, advanced treatment and climate-resilient resource use. Job van Schelven, Partner at PureTerra, said, "The constraint is capital and adoption, not ideas." He highlighted Europe's strong water technology research capabilities, noting that the region accounts for about 40% of global water patents, while comparatively few innovations reach industrial scale.

 

Marjut Falkstedt, Chief Executive of the European Investment Fund, emphasized the urgency of developing technologies that reduce pressure on Europe's water resources. "Europe’s water resources are under enormous pressure, closely related not only to climate change but also to our excessive use of this scarce and crucial element," she said. The investment aligns with the European Commission's 2025 Water Resilience Strategy and the European Investment Bank Group's wider climate adaptation and water resilience priorities. The fund will also support technologies that help industries meet tightening requirements for wastewater treatment, pollution prevention, and water efficiency.

 

The €30 million commitment reflects increasing institutional interest in water technology as an investment opportunity linked to climate adaptation and long-term industrial resilience. By supporting businesses as they move from technical demonstrations to commercial deployment, PureTerra II aims to accelerate the adoption of solutions that improve water availability and reduce environmental pressures. However, the EIF's commitment reflects its investment in the fund, not the fund's total capitalization or money already deployed to individual companies. The eventual impact will depend on the technologies financed and their successful adoption across European industries and water systems.

 

Source: The European Investment Fund (EIF)