Water cycle climate action

Key achievements during 2024–25 include:

• delivering the Water Minister’s Climate Innovation Challenge 2024, won by South East Water with RMIT University for their world-first project to use recycled water and solar to generate green hydrogen.
• establishing a water sector adaptation capability building working group, in partnership with VicWater. This group will support their peers to build climate-related hazard and risk assessment capabilities, improving water infrastructure planning, design and investment decisions.
• managing regional grant-funded projects to build the resilience of our waterways and land to the impacts of climate change, including through use of existing pipelines to deliver environmental water to stressed landscapes in the MacKenzie River and Burnt Creek systems.
• managing integrated water management grants for projects being delivered by local governments, water entities and Traditional Owners to prepare our water system for more extreme weather conditions. One of those grants, to the Hume City Council, will keep the Kalkallo sports field green whilst protecting the Merri Creek from storm runoff with a new system to harvest and re-use stormwater.
• updating the Ministerial Reporting Directions in December 2024 to set clear expectations for the Victorian water sector on transparent and effective climate risk management (coming into effect from 2025-26).
• provided guidance to the Victorian water sector to achieve net-zero greenhouse gas emissions by no later than 2035. Annual reports released in October 2024 show the Victorian water sector has already cut emissions by 20.1% and is taking strong action to achieve its 2025 collective target of a 42.4% reduction.
• delivered circular economy projects to increase adoption of new technologies across the water sector for hydrogen and trialling new wastewater treatment options for biosolids.
• engaged with water corporations to support implementation of Victoria’s Gas Substitution Roadmap and Recycled First Policy.
• strengthened progress indicators for water corporations to report on circular economy.
• funded North East Water and Barwon Water to deliver research on brine management for hydrogen.
• convened working groups on energy and circular economy challenges in partnership with water corporations to share knowledge and to improve long-term planning for emissions reduction and to achieve 100% renewable electricity by December 2025.

Key achievements during 2025–26 strengthened the reliability of Victoria's water services, improved emergency preparedness and supported practical innovation across the water sector. Together, these actions helped water corporations, catchment management authorities and government agencies better prepare for future challenges, support communities, protect water quality and maintain essential services during disruptions, particularly in regional areas.

Key achievements during 2025–26 include:

• Prepared and consulted on the draft Water Cycle Adaptation Action Plan 2027–2031, helping ensure water services, infrastructure and natural systems remain reliable under future environmental and operational pressures. The plan supports long-term planning for communities, businesses and agriculture across Victoria.
• Developed and released Victoria's Water Sector Emissions Transition Plan, providing a clear pathway for water corporations to improve operational efficiency, manage future costs and maintain reliable services while reducing environmental impacts.
• Facilitated circular economy and energy working groups across the water sector, accelerating practical solutions that improve the efficiency and sustainability of water and wastewater services and support innovation across metropolitan and regional Victoria.
• Strengthened oversight of sector risks, emergency preparedness and performance, supporting more coordinated decision-making and improved resilience of essential water services.
• Strengthened Victoria's water emergency management capability through recruitment, training and rostering of additional personnel, improving the sector's ability to respond to emergencies and support communities during disruptions.
• Trialled satellite-based monitoring of harmful algal blooms in partnership with water corporations and CSIRO, improving the ability to identify emerging water quality risks earlier and support timely public health advice.
• Supported communities in Gippsland through ongoing monitoring of blue-green algae in the Gippsland Lakes, helping protect recreational users, local industries and environmental values.
• Delivered the 2025 Water Minister's Innovation Challenge with Intelligent Water Networks, supporting local solutions that improve service delivery, reduce operating costs and strengthen the long-term sustainability of water infrastructure.

These initiatives are helping Victorian communities continue to access safe and reliable water services, while strengthening the sector's ability to respond to emergencies, protect water quality and support regional economic resilience.