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Drying Rivers, Rising Costs

Europe's Rivers Reach Historic Lows

Water levels in the Rhine and Danube have fallen to record lows, disrupting freight and power generation across Europe.
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Europe's Rivers Reach Historic Lows
Foto: Symbolbild | clickpetroleoegas.com.br · Symbolbild (thematisch gesucht: S&P 500 Europes Key Rivers Are Drying Up as Extreme Heat Imp) - nicht das Originalfoto der Quelle.
The essentials
  • The Rhine at Kaub dropped to 24 centimeters, set to be lowest since 1880.
  • Hungary is shutting down its only nuclear plant amid the drought.

Europe’s major rivers are drying under the weight of extreme heat, disrupting vital transport networks and straining power generation. The Rhine and Danube, long the lifelines of the region’s heavy industries, are now at dangerously low levels. The drop in water is slowing the movement of chemicals, oil products, and essential goods, while pushing freight prices higher. Along the way, riverside reactors from France to Hungary are struggling to produce enough energy, exacerbating energy shortages and inflation in the region. This crisis is part of a broader trend of climate-driven extremes, as Europe, the continent warming fastest, grapples with recurring heat waves and worsening droughts.

Rising Heat, Drying Rivers

Water levels at Kaub, a key chokepoint for the Rhine, have reached a critical threshold. On Friday, they reached 25 centimeters, matching the record low from the 2018 drought. With conditions expected to deteriorate further, levels could drop to 24 centimeters by the end of the week. If that happens, it would be the lowest point since records began in 1880. The Rhine, which spans 1,290 kilometers from the Swiss Alps to the North Sea, is now so shallow in parts that it’s nearly impassable for standard freight vessels. The ongoing fourth heat wave of the summer is compounding the problem, as high-pressure systems block moisture from replenishing the river systems.

Back in 2018, the chemical giant BASF was forced to cut production at its Ludwigshafen facility when the Rhine became too shallow for cargo ships. Today, the company has adapted with alternative transport methods, albeit at a higher cost. Dirk Elvermann, the company’s CFO, acknowledged the ongoing concerns about low water levels but said the situation remains under control. Other industries are also shifting strategies, with the share of freight transported via inland waterways in Germany dropping from 4.7% in 2017 to 4.1% in 2024, as companies turn to rail and other alternatives.

Energy and Industry Under Fire

Power plants along the Rhine, including coal-fired operations managed by EnBW, are adjusting to the changing climate. The company has been building up fuel reserves during outages to ensure adequate supplies. If water levels continue to fall, some plants may need to limit the cargo they carry per vessel, switch to smaller barges, or move to rail transport altogether. DB Cargo, the railway operator, is already in communication with businesses affected by the low water levels on the Rhine, Europe’s busiest inland waterway.

Roberto Spranzi, a member of the German Inland Waterway Transport Cooperative, warned that some vessels may soon be unable to operate due to technical limitations. He also pointed out that high fuel prices are compounding the difficulties faced by transport operators. The ongoing heat and drought are drying out soil before it can contribute to river flows, reducing water levels further. Additionally, reduced snowmelt from the Alps, a crucial water source in late summer, is worsening the situation for the Rhine and other rivers.

Hungary’s Nuclear Plant Shut Down

The Danube, Europe’s second-longest river, is also suffering from record-low levels. In Romania and Slovakia, barge traffic is being disrupted, and power plants are facing reduced efficiency. Hungary is on the brink of a historic move: its only nuclear plant, which has operated for 44 years, is expected to shut down completely for the first time. This decision presents a major challenge for new Prime Minister Peter Magyar, who will be under pressure to address energy supply issues as the summer progresses and the situation on the Danube continues to worsen. The Cernavoda nuclear power plant on the Danube has two reactor blocks and is the only nuclear power plant in Romania. The first reactor had already been shut down a few days ago, and now the second one followed. The operator Nuclearelectrica referred to the procedures planned “in the event of severe drought”. The nuclear power plant normally generates about a fifth of Romania's electricity. It is the first time that both blocks had to be shut down due to the low water level of the Danube. The Paks nuclear power plant, whose four reactors are of enormous importance for Hungary's electricity supply, is also located on the Danube. All four reactor blocks there will be gradually shut down, as Prime Minister Peter Magyar announced. The day before, one of the reactors in Paks had been shut down due to a lack of cooling water from the Danube. The remaining three blocks are scheduled to be shut down within the next 24 or 72 hours. Magyar said there could be power supply shortages from Monday at the latest. The country's electricity reserves are now being used and imports are being taken care of. Magyar called on the population to save electricity. The reason for the water shortage in the region is a lack of rainfall, but also increasingly little meltwater from glaciers.

Dominik Schumacher, a lecturer in environmental systems at ETH Zurich, emphasized that human-induced warming has intensified the current drought, making it far worse than it would have been otherwise. He warned that if temperatures continue to rise, even the same amount of rainfall will not prevent future droughts from becoming more severe. The real test for Europe, he said, is whether it can adapt its infrastructure—built for the conditions of the 20th century—to survive a climate it no longer recognizes.

“Human-induced warming has already made this drought more severe than it would otherwise have been, and the same rainfall deficit would give a worse drought again under further warming.”

Frequently asked questions

Why are Europe’s rivers so low this summer?

Europe's rivers, including the Rhine and Danube, are at record lows due to a combination of extreme heat and drought, exacerbated by climate change.

How is the drought affecting industry?

Low river levels are disrupting the transport of chemicals and oil, increasing freight costs and reducing industrial production in parts of Germany.

What is Hungary doing about the drought?

Hungary is fully shutting down its only nuclear plant for the first time in 44 years, a direct consequence of the ongoing drought and water shortages.

Based on reporting by Financial Post, compiled by the Tradingbird newsroom. Published 02 Aug 2026, 11:19.
Topics: Commodities · Energy

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