The European Parliament adopts the Nature Restoration Law

Interactions between man, climate and nature (source: WWF )

The degradation of ecosystems and the loss of biodiversity caused by anthropogenic pressure in recent decades are exposing the well-being and future of humankind on a global scale to increasing risks.

This ecological crisis, which at the European level results in 81% of protected habitats being in a poor state of conservation, is affected by and, in turn, exacerbates the impacts of climate change in a so-called negative feedback loop: on the one hand, rising temperatures and altered precipitation regimes are deepening the loss of biodiversity and accelerating the collapse of ecosystems; on the other hand, the unsustainable use and degradation of environmental resources are leading to a reduction in the capacity to absorb and store carbon in natural reservoirs (mitigation) and to a lower degree of adaptation to climate change in urban and rural settlements.

The two crises – climate and ecology – are deeply interconnected and threaten the preservation of the European economy’s natural balances, sustainability and resilience.

Indeed, businesses in all sectors – from agriculture to energy, fishing to construction, water supply to food processing – depend highly on the health of natural ecosystems and the preservation of their services.

While these are adversely affected by increasing ecological imbalances and extreme weather events affecting resource supply, productivity and operating costs, it is estimated that investments in nature restoration would bring benefits of between €8 and €38 for every euro spent (European Commission) and that nature-positive products and services could generate up to USD 10 trillion per year for businesses. This highlights the enormous potential that environmental conservation, besides being a value in itself, could provide to the global economy (World Economic Forum).

In this context of growing risk and uncertainty – environmental, social, economic and financial – ambitious policies and regulations are needed to address this multidimensional crisis systemically and jointly.

This is why the European Parliament’s favourable vote on 12 July to approve the Nature Restoration Law was an important step towards implementing the ambitious GlobalBiodiversityFramework and leading Europe to transition to an economy that recognises the interdependence of human and natural well-being.

The Nature Restoration Law is integral to the European Green Deal and the European Biodiversity Strategy. It aims to create a legislative framework necessary for the recovery and conservation of European ecosystems, in line with the Union’s climate objectives and agreements signed at the international level. The law sets as an overall target the restoration of at least 20 per cent of the EU’s land and marine areas by 2030 and of all ecosystems in need of restoration action by 2050.

This is translated into specific targets, which are legally binding on Member States, concerning:

•   the increase of pollinating insect populations by 2030 (reversing the current trend of decline);
•   the protection of forest ecosystems by increasing standing and ground deadwood, organic carbon stock, and mixed-age forests and improving forest connectivity and species abundance;
•   improving urban ecosystems by preventing net loss (by 2030) and expanding urban green spaces;
•   features and the restoration of drained peatlands used in agriculture;
•   the restoration of habitats in marine ecosystems;
•   removing barriers to river connectivity, to return at least 25,000 km of rivers to a free-flowing state by 2030;

Member states will be asked to draw up a national restoration plan outlining the projects and initiatives they intend to pursue to achieve the EU target.

Restoring the natural ecological balance of forests, rivers, wetlands, grasslands, seas, and oceans will not only help to increase biodiversity and safeguard ecosystem services – of fundamental importance for the health of humankind and the prosperity of the global economy – but will also play a key role in climate change mitigation and adaptation, helping to limit the increase in temperatures to within the IPCC’s 1.5°C threshold. This will also strengthen Europe’s resilience to natural disasters, with significant benefits for health, food security and sustainable socio-economic development of Member States.

Intensive negotiations between the European Commission, Parliament and Council on the Nature Restoration Law closed on November 9, 2023. The preliminary agreement brought back crucial challenges to restoring nature and safeguarding the ecosystem services on which our well-being and economy depend. The protection of biodiversity in agricultural and peatland environments was again included in the agreement, as was the openness to take action outside the Natura 2000 Network.

The law’s final text was approved on February 27, 2024, confirming the planned targets: to restore at least 20 per cent of Europe’s marine and terrestrial territory by 2030 and all endangered habitats by 2050.

To do this, the Nature Restoration Law aims to restore 30 per cent of terrestrial and marine habitats in poor conservation status by 2030, 60 per cent by 2040, and 90 per cent by 2050. Natura 2000 Network sites are given priority for action until 2030.

After a stop in the European Council in March 2024, on June 17 2024, despite the vote against by some governments, including Italy, the Nature Restoration Law was officially approved and adopted by the European Union. As of August 18, 2024, the Nature Restoration Law formally came into effect.

The law stipulates that, within two years of its entry into force, each member state should have a Restoration Plan that maps the conservation needs of its territory and identifies measures to reach the goals set for 2030, 2040 and 2050. In addition, the law also defines some important indices for the conservation of biodiversity in agricultural and forestry environments and for the protection of pollinators, and it also confirms the goal of planting 3 billion new trees by 2030. The Commission will support national authorities in drafting these Plans, which should be developed publicly and with the participation of key stakeholders.

The Commission is committed to identifying critical issues related to Nature Restoration Law funding in the next 12 months and finding suitable economic support methods to bridge the gap between conservation needs and financial availability.

It will be necessary to create synergies between Restoration Plans and the challenges related to the climate crisis and the needs of the world of agriculture and forestry. This process will irrevocably involve paths of dialogue, including complex ones, between nature conservation and business. Indeed, some representatives of the agricultural world have pointed out how ecosystem restoration activities contribute to taking away productive land from them and require significant economic efforts.

The funds needed for the planned actions can be obtained from public and private funding, including European funding.

The objectives of the NRL are ambitious and challenging regarding the timeframe. Still, we believe they are necessary to give a clear vision to all sectors of the economy: nature is a fundamental element of our security and economy, and we must take care of it systematically and on the correct scale. And that is why Etifor wanted to play its part in promoting the NRL.

We participated in the Cambridge Institute for Sustainable Leadership and CLG Europe’s Nature Campaign to voice our support for the law. We signed the open letter of Business for Nature – a global coalition of organisations promoting credible corporate action and innovative environmental policies – urging EU political leaders to adopt pro-nature conservation regulations on time.

In addition, Etifor was among the co-organisers of the recent edition of the European Business and Nature Summit in Milan, an international event – promoted by the European Commission – to involve organisations that aim to develop and explore sustainable business models also aimed at the conservation of biodiversity.

As part of the EBNS 2023, Etifor, the Lombardy Region and the Forum for Sustainable Finance set up the Italian Business@ Biodiversity Working Group. The working group was created as a national branch of the existing European platform, allowing Italian companies to contribute concretely to a nature-positive future. The objectives of the table are clear: to raise awareness and educate companies on the economic importance of biodiversity, to promote public-private partnerships and to align business strategies with international best practices.

The adoption of the Nature Restoration Law and its implementation at the state level through National Restoration Plans represents the first real challenge to show how the private sector can also contribute to supporting nature restoration and biodiversity protection—a huge thank you to everyone who supported the #RestoreNature appeal. Our strong voice made an impact!