Water abstraction is fundamental to safe and efficient chemical manufacturing, supporting cooling, steam generation, pollution abatement and emergency response. As the Environment Agency prepares to review licences between 2028 and 2035, some catchments may require reductions to protect natural water bodies. Climate pressures could reduce summer river flows significantly by 2050, increasing the need for careful management. A balanced approach is essential — one that supports environmental recovery while recognising the chemical sector’s reliance on reliable water supplies and its critical role in maintaining safe operations, national infrastructure and wider economic stability.
Introduction
The UK chemical industry makes many critical products which are essential for other industries and sectors. Related to water, these include chlorine manufacture and water treatment chemicals which are vital for the operation and quality of UK domestic water supplies. Ensuring reliable and sufficient water supply to the chemical operations therefore helps to ensure public water supplies remain robust without interruption.
Equally, chemical manufacturing and chemistry requires a significant amount of water, even in a net zero world. The chemical industry uses water for many purposes including as a raw material, for heating (steam) and cooling. It is also required for critical environmental protection purposes (e.g. pollution abatement) and to prevent major process safety accidents (fire’s, explosions etc). Up to 50% of chemical businesses abstract water from surface waters (e.g. rivers and canals) and boreholes. Taking water from these natural resources minimises public water consumption. It also serves as crucial emergency backup water for some operators.
Sufficient and reliable water supply to chemical operations is important as typically facilities can only store water for a few hours due to the relatively high volumes of water needed for safe operations. Making efficient use of water (and energy) also has a natural economic driver, which helps the sector to optimise water use and to minimise water abstraction where practical and safe to do so. Most water abstracted is returned back to the environment after use. Despite being water efficient (in most cases) the chemical sector is still the third largest abstracting non-public water supply sector, behind energy and agriculture.
Proposals to Review and Amend Abstraction Licences (where necessary)
Current levels of water abstraction are damaging or have the potential to damage the environment in some catchments
- • 15% of surface water and 27% of groundwater have unsustainable abstraction
- • 6% of surface waters are at risk of damage from abstraction growth
Climate impacts may mean there is up to 30% less water available in the summer within some rivers by 2050.
To protect water bodies in England the Environment Agency (EA) will be carrying out surface water catchment reviews from 2028 to 2035. During this period abstraction licences (both time limited and permanent) will be reviewed and changes made to licences where necessary to address abstraction points that are causing damage to the local water body. This includes groundwater abstraction licences as well as surface waters (rivers etc). Nationally, the majority of abstraction licenses will not need to be changed. However, new legislation comes into force on 1st January 2028 enabling the EA to revoke water abstraction licences without compensation if they need to protect natural water bodies. They can also reduce the capacity of water abstraction in licences. For an explanation of the Environment Act abstraction powers see: Environment Act 2021 (Section 88, paragraphs 850 – 864).
The EA will write directly to all potentially impacted licence holders as abstraction permit reviews progresses detailing any potential future changes to their abstraction licence, what happens next and what they can do to prepare. The Communication will be aligned to catchment common end date reviews. Once a catchment assessment is complete, licence holders will be informed if their licence needs to change and how it will need to change. Most licences are already sustainable due to existing licence conditions and will be unaffected.
The EA plans to give early notice to those impacted to try to reduce impact on businesses. There will also be an opportunity for licence holders to propose alternative sustainable licence changes or for a multi-sector proposed alternative solution (see items 3 and 4 below).
CIA Recommendations
The CIA recognises the need to conserve water (especially where damage to the environment is evident) but is concerned that changes to water abstraction licences may have a significant business impact or could represent a site viability threat in the worst instance) for some chemical site operations. For this reason, we would recommend that businesses plan ahead in case they may be impacted following a catchment review – by following these steps (as early as possible):
1. Find out when the EA is due to review your catchment (2028-2035). The CIA has an EA slide pack with review dates which is available so please contact us. Then understand the status of your surface water body (e.g. river). These links can help but ask your regulator for support if needed. Managing Water Abstraction and Abstraction licensing strategies. Catchment Summaries | Environmental Destination - Get involved! | Engage Environment Agency.
2. Use the Defra Data Services Platform. This includes a spreadsheet containing potential reductions to abstraction licence quantities that may be needed to meet environmental flow requirements for each water body in England. Also use the following link which includes a summary table for each river and sector reduction targets River Basin Districts | Environmental Destination - Get involved! | Engage Environment Agency. Chemical site operations are impacted where a % reduction for ‘Industrial’ is proposed – see example below.
3. If your site is potentially impacted, and a reduction in your licenced volume cannot be easily achieved, CIA strongly recommends that you get in touch with your regional water resource group:
West Country Water Resources - Get Involved | WCWRG
Water Resources East - Become a member - Water Resources East (wre.org.uk)
Water Resources North - How to get involved (waterresourcesnorth.org)
Water Resources South East - Contact us | WRSE - Water Resource South East
Water Resources West - Get Involved — Water Resources West
Your regional group can help connect you with other abstraction licence holders who may also be impacted and can work with you on impact, timing and possible options. Connect early as significant time may be needed to work with other licence holders to propose alternative sustainable licence changes (an option provided by the EA).
4. You may also be able to apply for funding to make improvements linked to alternative sustainable options (item 3 above). Visit the EA’s Water Hub: Local Resource Options - Join our community | Engage Environment Agency. The EA’s LRO’s (Local Resource Option) funding support is for multi-sector improvements and will be running for several years, so don’t be put off if you miss the latest application deadline.
Finally, please connect with the CIA for further support or to provide feedback.
