EU Nature Restoration Act - Protecting Europe's biodiversity

EU Nature Restoration Act - Protecting Europe's biodiversity

On July 12, 2024, the European Parliament adopted a law on nature restoration, a pillar of the European Green Deal. Although reduced after negotiations, this law aims to restore 20% of European ecosystems by 2030, with a target of total restoration by 2050. In particular, it targets degraded habitats, endangered pollinators and agricultural biodiversity, while also incorporating measures for urban and forest ecosystems. However, its implementation faces major challenges.

Matthieu Duault

Matthieu Duault

Climate Copywriter

Update :
4/11/2024
Publication:
22/10/2024

On July 12, 2024, the European Parliament voted to adopt the Nature Restoration Act. Largely watered down following bitter negotiations between EU member states, this text, which is intended to be one of the new pillars of the European Green Deal, leaves a bitter taste in the mouths of certain activists and climate defenders who consider that it falls short of the challenges we face today. It does, however, enable the European Union to set an initial course for the protection of biodiversity on the old continent.

Biodiversity in Europe: an alarming state of affairs

Europe's ecosystems have suffered severe degradation in recent years. It is now estimated that 80% of the European Union's natural habitats are in poor condition. The effects on flora and fauna are extremely worrying. Europe has lost 25% of its bird populations since 1980 (60% for species living in agricultural areas), and insect populations are estimated to have fallen by 70-80% in areas of human activity.

Status of natural habitats in the European Union (Source: Council of Europe via data from theEuropean Environment Agency - Data for the period 2013-2018, based on assessments of habitats covered by the EU Habitats Directive)

Not only are these ecosystems a prerequisite for preserving biodiversity, they are also crucial for mitigating the effects of climate change and ensuring our food security.

Pollinating insects, which are essential to our agriculture, are under particular threat. ⅓ of bee and butterfly species are in decline in Europe, and 10% are on the brink of extinction.

The European Central Bank has also noted that, among European non-financial companies , 72% are critically dependent on ecosystem services and 75% of business loans in the eurozone were granted to companies dependent on at least one ecosystem. Protecting nature is therefore also a major economic challenge.

Exposure of eurozone banks' loan portfolios to nature-related risks (Source: ECB via EXIOBASE, ENCORE, AnaCredit and ECB calculations)

Note: The graph shows the share of loans with a high dependency score (above 0.7) for at least one ecosystem service. A loan is classified as highly dependent when the borrowing company has a sufficiently high direct dependency score (blue bar) or a sufficiently high dependency when possible supply chain links are taken into account (yellow bar).

If this issue is not taken seriously today, global warming will only amplify the current trend and its consequences. With these regulations, the European Union has set itself the target of reversing this trend by 2050.

The genesis of the Nature Restoration Act

The origins of the initiative

The European Union had already committed to implementing measures to preserve ecosystems and biodiversity, notably in the Kunming Global Biodiversity Framework in Montreal. This agreement, adopted at the COP 15 biodiversity summit in 2022, calls for the restoration of 30% of degraded ecosystems by 2030.

The European Union is also a party to the Convention on Biological Diversity (CBD), an international treaty adopted in 1992 at the Earth Summit in Rio de Janeiro and designed to establish strategies for the preservation and sustainable use of biodiversity. Among other things, it is behind the deployment of Natura 2000 areas within the EU. The 196 parties to this treaty meet every 2 years to take stock of actions taken and to introduce new measures.

In view of the state of Europe's biodiversity, and in order to meet its international commitments, the European Union has made nature conservation a priority and one of the pillars of the Green Pact for Europe , following the example of the CSRD and CSDD, which have also included biodiversity in their scope of action.

The European law on nature restoration is first and foremost in line with the "EU Biodiversity Strategy 2030 adopted in 2021 by the European Parliament, and in connection with the "Fit for 55" package, which aims to reduce the European Union's greenhouse gas emissions by 55% by 2030 compared with 1990 levels.

A stormy legislative path

The first version of the text was proposed by the European Commission on June 22, 2022. Initially very ambitious, the text was reworked throughout the legislative process, in the face of protests from many member states and parliamentarians, who saw it as a threat to the agricultural and fishing sectors.

The widely-amended text was adopted by the European Parliament on July 12, 2023, following an extremely close vote. In particular, the EPP strongly opposed the bill.

The law was then the subject of a trialogue between the European Commission, the European Parliament and the European Council. Following further compromises, the three institutions reached agreement on November 9, 2023. The agreement includes a number of derogations and the possibility of suspending certain parts of the agreement, notably in the event of a risk to European food safety.

This version of the text was finally adopted by the European Parliament on February 27, 2024.

However, the text was once again blocked by the European Council, partly because of the agricultural crisis that shook Europe at the start of 2024. To be adopted by the Council, the bill needs a qualified majority, i.e. 55% of EU member states, representing 65% of the European population. With Hungary's sudden change of heart, the regulation was no longer in a position to benefit from this majority. On June 17, 20 countries voted in favor, 6 against (Hungary, Finland, Netherlands, Italy, Poland, Sweden) and 1 abstained (Belgium).

The European Parliament finally adopted the final version on July 12, 2024, which was published in the Official Journal of the European Union on July 29 and came into force on August 18.

What does the Nature Restoration Act contain?

Article 1 defines the main objectives of the regulations:

  • "Restore biodiversity and ecosystem resilience in all Member States' land and marine areas on a long-term and sustainable basis, by restoring degraded ecosystems;
  • Achieve the Union's overall objectives in terms of climate change mitigation and adaptation, and neutrality in terms of soil degradation;
  • Reinforcing food safety;
  • Respect the Union's international commitments."

What does this mean in concrete terms?

The law sets targets to be achieved over well-defined periods. Depending on their specific situation, Member States are required to draw up a roadmap for restoring the ecosystems present on their territory. The text provides a full list of the habitat types concerned.

Restore degraded ecosystems by 2050

The Nature Conservation Act requires member states to implement measures to restore 20% of the European Union's marine and terrestrial ecosystems by 2030, and all of them by 2050. This includes various ecosystems such as forests, wetlands, grasslands and marine ecosystems.

In the first period, priority is to be given to Natura 2000 zones, protected areas identified as hosting endangered habitats and species representative of European biodiversity.

Natural habitats considered to be in "poor condition" will have to undergo restoration measures to maintain a favorable conservation status for the species in the long term. These measures will concern : 

  • 30% of the surface area of these habitats by 2030
  • 60% by 2040
  • 90% by 2050

In addition to efforts to restore natural habitats, member states undertake to prevent any deterioration of restored areas in good condition, and of ecosystems hosting species in need of preservation. 

Protecting pollinator populations

Our food security and, more broadly, the European economy depend to a large extent on ecosystem services. Given the state of Europe's ecosystems, it has become essential to take steps to preserve and enhance these essential services.

The regulation aims to reverse the decline in pollinator species by 2030. These insects play a crucial role in soil fertility and agricultural production. EU member states must therefore take all the necessary measures to halt this decline by 2030, and achieve an upward trend in pollinator populations from that date onwards.

Restoring agricultural ecosystems

Agricultural ecosystems are among the hardest hit by biodiversity loss, notably due to pesticide use and, more generally, intensive farming practices. They are therefore the focus of particular attention.

States must take measures to achieve an upward trend in at least 2 of the following 3 criteria: 

  • prairie butterfly populations
  • the quantity of organic carbon stored in mineral soils on cultivated land
  • the share of farmland with high-diversity topographical features‍

Restoration measures must also be taken to increase populations of common farmland birds. The regulation provides, for each country, a list of the bird species concerned by these measures.

Restoring river connectivity

In line with the EU's Biodiversity Strategy 2030, the Nature Restoration Law aims to restore 25,000 km of watercourses across the European Union.

States must draw up an inventory of artificial barriers preventing the natural connectivity of watercourses, and undertake to remove all obsolete barriers, i.e. those no longer used for navigation, energy production, water supply, etc., as soon as possible.

These measures should also restore the natural functions of the floodplains along the targeted watercourses.

Trees and forest ecosystems

States must implement measures to enhance forest biodiversity. These include bird populations, which will be subject to special monitoring.

States must show an upward trend in 6 of the following 7 indicators: 

  • standing deadwood
  • dead wood on the ground
  • share of uneven-aged forests
  • forest connectivity
  • organic carbon stock
  • share of forests dominated by native tree species
  • diversity of tree species

At the same time, the law reaffirms the EU's objective of planting 3 billion trees by 2030, in all environments (forest, urban, agricultural, etc.), with a clear preference for indigenous species. The European Commission has set up an online counter to track the progress of this project.

All these measures aim to restore biodiversity, create new carbon sinks and promote the development of ecological corridors.

Restoring urban ecosystems

The regulation points out that urban ecosystems account for 22% of the EU's surface area, and are home to the vast majority of Europe's population.

climate change adaptation is one of the main challenges facing these urban areas, which are prone to the development of heat islands.

States must ensure that by 2030, the proportion of urban green spaces and tree cover does not decrease. From 2031 onwards, they must take the necessary measures to increase this proportion.

Implementing the European law on nature restoration

Each member state of the European Union must already take the necessary initial measures, and must then draw up and submit a restoration plan to the Commission by September 1, 2026 at the latest. The Commission will then assess compliance.

Restoration plans will include

  • quantify the areas to be restored within their territory
  • the objectives set for each of the points mentioned in the law
  • implementation procedures
  • the budget required and mobilized to achieve the set objectives
  • the timetable for implementing restoration measures

They must ensure regular monitoring of the various biodiversity indicators

As part of the EU's Biodiversity Strategy 2030, a monitoring tool is already available on the European Commission website. It lists the various objectives set by the EU and their current status.

Overview of the EU biodiversity strategy actions tracker for 2030 (Source: EU biodiversity strategy actions tracker)

At the request of the European Parliament , a mechanism has been added to stop measures put in place to restore agricultural ecosystems. This can only be activated in exceptional circumstances that could threaten the European Union's food security. It responds to the concerns expressed by representatives of the farming community about the potential impact of such measures on their activity and production capacity.

Implementation challenges

The difficulties encountered by the European institutions in reaching agreement to ratify this regulation foreshadow the challenges that its implementation will face. These will require close cooperation between member states and a shared long-term vision.

Coordination between states

Coordination between the various EU member states is a major challenge. Each country has different ecological, economic and social contexts, which can make it difficult to apply the law uniformly across the European Union. Differences in national priorities, technical capabilities and governance can create disparities in the implementation of restoration actions.

Geography is also a major disparity. France, for example, has the largest maritime area in Europe, part of which is severely degraded, and therefore faces major challenges not faced by countries in Central Europe, for example. The fishing industry, already in difficulty, has already expressed its concern about the implementation of this regulation.

Financing restoration projects

Project financing is another major challenge. Restoring degraded ecosystems requires considerable long-term investment. Although European funds, such as those from the Common Agricultural Policy or environmental programs, are available, they may not be sufficient to cover the scale of the needs.

A report published on September 4, 2024 entitled "A Common Perspective for Agriculture and Food in Europe". calls for a "temporary fund for a fairer transition" to be set up in addition to the CAP, to help farmers meet the challenges of transforming their business and adapting to the consequences of climate change.

Over and above these European funds, the commitment of member states, additional public investment and greater involvement of the private sector will inevitably be needed to make up the shortfall.

Difficult to monitor results

The final major challenge is monitoring progress and meeting the obligations of the regulation, which poses technical and administrative challenges. Member States will not only have to meet complex environmental targets, but also regularly monitor their progress.

What methodologies and tools will enable us to monitor project progress and the achievement of such varied and specific objectives? 

This will require robust monitoring systems, skilled human resources and mechanisms to ensure that EU deadlines are met, otherwise restoration efforts will be slowed down.

Conclusion: is the Nature Restoration Act a success?

The European Nature Restoration Law represents an important step towards the protection of biodiversity and ecological resilience in Europe. Although watered down after lengthy negotiations, it remains a key element of the European Green Deal, setting ambitious targets for reversing ecosystem degradation by 2050. However, its adoption is only the first step, as its implementation raises numerous challenges. Member States will have to overcome diverging priorities, mobilize substantial funding and ensure rigorous monitoring of progress.

Preserving biodiversity is not just an environmental issue, but also an economic and social one. Ecosystems are essential to food security, to the fight against climate change, and to the prosperity of many economic sectors in Europe. The success of this regulation will therefore depend on close coordination between governments, the active involvement of the private sector, and the mobilization of all stakeholders. If Europe succeeds in meeting these challenges, it will not only be able to restore its ecosystems, but also become a model of ecological resilience for the rest of the world.

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