The EU Nature Restoration Law

This week’s explainer covers the EU’s Nature Restoration Law 2024 and the mutual gains it aims to generate for both the built environment and biodiversity. Pursuant to the law, member states are held legally accountable for not just the prevention, but the cure for the damage done to Europe’s natural ecosystems. Companies in the construction, infrastructure, and land-use industries must act now to assess, adapt, and align their operations with the new requirements.

The Nature Restoration Law

Member states have until 2026 to develop national plans to:

1. Restore at least 20% of EU land and sea by 2030 

2. Restore all ecosystems that need restoration by 2050

3. Achieve the good condition of key habitat types and habitats of species on land and sea

4. Maintain urban green space and canopy cover, increasing it from 2030

By implementing these plans, the EU believes member states will help to achieve the following outcomes for nature by 2030:

1. Restore 25,000 km of rivers into free-flowing rivers

2. Reverse the decline and improve diversity of pollinator populations

3. Enhance biodiversity in agricultural ecosystems 

4. Improve biodiversity of forest ecosystems

5. Plant three billion additional trees 

National plans must outline needs and restoration measures specific to member states’ geography and jurisdiction, prioritising measures with highest potential for carbon capture and storage and those preventing and reducing the impact of natural disasters. The plans must include timelines for implementation, resources and funding intentions, and expected benefits for climate change adaptation and mitigation.  

Background

Europe’s biodiversity has largely fallen between the cracks of voluntary efforts and incumbent directives, which include the EU Birds and Habitats Directives, the Water Framework Directive and the Marine Strategy Framework Directive and the Natura 2000 network of protected areas. Data submitted pursuant to these directives reveals the staggering extent of loss across Europe.

Protected species: 27% good conservation status. 63% in poor or bad state. 

Habitats: 15% good conservation status. 81% in poor (45%) or bad (36%) state.

Trends: Forests exhibit the most improvement. The highest amount of deterioration seen in grasslands, dune habitats and bogs, mires and fens.

Globally, the picture is worse, and in December 2022, 185 countries agreed on an urgent action plan to halt and reverse biodiversity loss - The Kunming-Montreal Global Biodiversity Framework. The EU captures its commitment under this framework in its Biodiversity Strategy, and the Nature Restoration Law is a key instrument for its fulfilment. It is also an essential piece for Europe to complete the climate neutrality puzzle by 2050. 

How Biodiversity Battles Climate Change and Boosts the Bottom Line

The title of the EU’s fact sheet for the Law, “For people, climate and planet”, represents the inextricable link between the natural environment and humanity. 

Industry is equally beholden to nature, with 72% of companies in the eurozone “highly dependent on at least one ecosystem service to produce their goods or provide their services. Severe losses of functionality in these ecosystems would cause critical problems for these companies and the European economy.” (Nature Restoration Law, Press Release) The new law converts this traditionally exploitative relationship into a symbiotic one - industry will now be equally accountable to nature for its sustained growth.  

The construction sector’s supply chain includes many industries that are directly dependent on nature, such as urban development, forestry, agriculture and infrastructure. Accordingly, businesses in these sectors will need to institute immense change to their business operations to achieve obligations under national restoration plans.