Over 4 years, $11.15 million is allocated to:

  • implement the Water Cycle Adaptation Action Plan to reduce the vulnerability of the water system to climate-related risks
  • continue to address climate-related infrastructure deterioration and
  • support an orderly transition to net zero through a circular water sector.

Expenditure to date

  • 2024–25 expenditure: $1.84 million

Annual progress summary

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.

Page last updated: 05/11/25