EU Nature Restoration Regulation: Goals, Legal Implications and Political Challenges

On 17 June 2024, the EU’s Environment Council approved the Nature Restoration Regulation (“NRR”). This regulation aims to set targets for restoration of degraded ecosystems across EU member states, with the ultimate goal of progressively restoring all degraded ecosystems by 2050.

The approval of the NRR comes shortly after the European elections held between 6 and 9 June.  Even though it was approved before the renewal of the main decision-making bodies of the EU, it signifies a likely continuation of the European sustainability agenda, as we discussed in a recent post.

Political and International Commitments

The NRR embodies the commitments made by the EU at the international level under the Convention on Biological Diversity[1], as outlined in the EU’s Biodiversity Strategy for 2030 approved in May 2020 and integrated into the broader European Green Deal that was approved several months earlier. The NRR also develops and provides quantifiable targets for the existing EU framework for the protection of habitats and ecosystems[2].

However, the approval of the NRR has been unusually challenging, only narrowly securing enough support for its adoption. This was achieved with Austria’s last-minute change to a favourable vote, following Hungary, which had withdrawn its initial support for the text.

Based on statements from their environment ministers during the public session held before the NRR was voted on, countries opposed to the NRR primarily criticized the lack of EU funding mechanisms for its objectives and the unequal financial burdens due to each country’s diverse geographical and natural conditions. Additionally, they highlighted the potential impact on an agricultural sector already struggling with high bureaucratic and administrative costs.

Other countries have also been actively addressing this issue. In the United States, following President Biden’s early announcements[3], several measures have been implemented to advance nature restoration efforts. These include initiatives like the ‘America the Beautiful’ initiative, a $1 billion public-private partnership supporting ecosystem restoration projects, together with the Ecosystem Restoration program, which funds strategic planning and evidence-based actions for ecosystem restoration and conservation within the broader Restoration and Resilience Framework.

Comprehensive Goals of the NRR

Delving into the content of the NRR, its main and most significant element is the goal to restore at least 20% of degraded land and sea areas by 2030 and to address all ecosystems requiring restoration by 2050. 

This requirement is however subject to a number of potential derogations based on feasibility, that members states can make use of in specific circumstances to allow for lower or delayed targets. 

This overarching goal is detailed throughout the text, defining specific indicators to assess the state of each type of ecosystem, setting specific sequential targets from now until 2050, and outlining the types of restoration measures that can be adopted. The categories of ecosystems addressed are as follows:

• Terrestrial, coastal, and freshwater ecosystems
• Marine ecosystems
• Green urban spaces in cities, towns, and suburbs
• Rivers and related floodplains
• Pollinating insects 
• Agricultural ecosystems
• Forest ecosystems

Implementation and Future Prospects

Member states must submit a national restoration plan within two years of the NRR’s entry into force, aimed at meeting the relevant targets. This plan will be evaluated by the European Commission, and member states will be required to provide monitoring reports every three years.

Any specific obligations for private operators will be defined by the policies adopted by each member state in order to meet their national restoration plans. According to the EU’s impact assessment^[4], those who work closely with ecosystems, such as farmers, livestock producers, and foresters may have to forego some income while transitioning to more sustainable practices. At the same time, restoration should generate longer-term positive impacts for businesses that directly depend on healthy ecosystems. This would be as a result of fewer floods, droughts, as well as better water quality and quantity, and opportunities to be involved in the restoration activities directly. According to the EU, a cost of EUR 154 billion spent on restoration will yield benefits in the order of EUR 1,860 billion.

Regarding the practical implications of the NRR, Article 6 deserves specific mention. It allows for certain renewable energy projects to be authorized based on overriding public interest, even if there are more environmentally beneficial alternatives available, provided that these alternatives are located outside of Natura 2000 protected areas[5].

As the NRR awaits final signature and publication in the Official Journal of the EU, it is slated to take effect 20 days thereafter. However, there is conjecture in the media that Austria might challenge the validity of its vote in the Court of Justice of the EU, arguing that Environment Minister Leonore Gewessler lacked the authority to vote in favour of the NRR. Recent press reports indicate that Austria’s conservative People’s Party intends to file a criminal complaint against Leonore Gewessler, alleging “abuse of office”, so time will tell how smooth the NRR’s future passage will be.

[1] Specifically, the targets set in the Kunming-Montreal Global Biodiversity Framework, approved at the COP15 of the aforementioned Convention held in Montreal in December 2022.

[2] Specifically (i) Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna and flora, (ii) Directive 2009/147/EC of the European Parliament and of the Council of 30 November 2009 on the conservation of wild birds, and (iii) Directive 2008/56/EC of the European Parliament and of the Council of 17 June 2008 establishing a framework for community action in the field of marine environmental policy.

[3] Section 216 of the Executive Order on Tackling the Climate Crisis at Home and Abroad, issued on 27 January 2021, expressly establishes the goal of conserving at least 30 percent of the United States’ lands and waters by 2030.

[4] Summarised here.

[5] The network is made up of the 27,000+ nature sites protected by EU legislation and is the largest network of protected areas in the world.