Many EU policies contribute to reducing flood and drought risks, which are projected to increase in many areas due to climate change. The EU Water Blueprint encourages a policy switch from dams, reservoirs, and other grey infrastructure to supporting natural water retention measures, or green infrastructure. Our estimates show that the costs of this switch can be significant for on-farm ponds; however, conservation tillage and (to a lesser extent) shelterbelts appear to be cost-competitive with reservoirs for storing water in the landscape. If the co-benefits, especially climate change mitigation, the reduction of land-use degradation and biodiversity, are taken into account, the cost advantage of these measures increases