Act4water Introduces Global Framework for Water Compensation

The Act4water Standard paves the way for a voluntary market of Positive Water Credits, generated through local projects aimed at enhancing water resources.

As global freshwater availability comes under increasing pressure, sustainability experts have joined forces to safeguard water supplies and help organisations address their water footprint. The alliance agreement, signed yesterday in London, marks a significant step in expanding the Act4water Standard, a certification framework designed to facilitate water compensation and support climate adaptation efforts.

The announcement aligns with London’s growing reputation as a hub for water innovation, highlighted by the recent World Water-Tech Innovation Summit, which took place on 25-26 February 2025. Desirée Marín, Chairperson of the Act4water Executive Committee and representative of Fundación Aquae in the alliance agreement, recently attended the event.

Commenting on the initiative, she states: “This collaboration merges water science, business innovation, and social commitment, providing companies with a tangible measure of climate adaptation through water footprints and positive credits—driving resilience across businesses, ecosystems, and communities while fostering sustainable finance.”

Spain, a country where 75% of the population could experience high water stress by 2050, according to an analysis by the World Resources Institute, serves as the launchpad for this international initiative. With active projects in Doñana, Barcelona, and Tenerife, the model aspires to establish a global benchmark for water footprint compensation, drawing inspiration from the worldwide success of carbon credit markets.

Act4water supports local projects that enhance water quality and availability, such as aquifer recharge and water reuse. The effectiveness of these projects is quantified through Positive Water Credits, a measurable unit representing positive water impact. Each credit corresponds to 1,000 m³ of water footprint saved within a basin. Simply put, if a project improves the quality or availability of 1,000 m³ of water, it generates one Positive Water Credit.

To assess project impact, Act4water employs standardised methodologies, including the water footprint, a concept developed by the Water Footprint Network (WFN) to measure humanity’s consumption of freshwater resources. Rick Hogeboom, WFN Director and member of the Act4water Executive Committee, explains: “Aligning corporate action with rigorous methodologies is essential to ensure measurable and transparent positive impacts. By bringing the Water Footprint Network’s academic perspective, we aim to ensure water compensation practices drive long-term water sustainability and resilience.”

Through a series of official certification marks registered in the EU, USA, and UK, Act4water enables companies to compensate for their water footprint while supporting meaningful local initiatives. The Act4water Standard offers a certification framework, allowing organisations to demonstrate their commitment to sustainable water management, whether through reduction strategies or impact compensation. Companies can achieve certifications such as Water Committed, Water Active, or Water Positive based on their progress. Additionally, the Water Neutral certification provides a means to verify water impact compensation for specific products, events, or locations.

This global collaboration comes at a crucial moment, as new regulations such as CSRD and Green Claims introduce stricter transparency and accountability requirements for corporate environmental reporting. Jaap Feil, Managing Partner at Water Footprint Implementation and a member of the Act4water Executive Committee, highlights the significance of this initiative: “This certification framework bridges the gap between regulatory compliance and tangible environmental impact, enabling businesses to meet new EU directives while driving real progress in protecting water resources.”

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