Vote to reject the EU Nature Restoration Law proposal fails at the European Parliament – European Council and Parliament now ready to start the trilogue
14/07/23
What is the EU Nature Restoration Law?
The decline of nature in Europe has become an urgent concern. Contributing factors such as climate change, pollution and habitat destruction have resulted in a significant loss of biodiversity. Habitats continue to deteriorate and species face the threat of extinction.
The EU acknowledges the gravity of the situation and has taken steps to address it by adopting a Biodiversity Strategy in 2020. The strategy sets out specific commitments and actions to restore degraded ecosystems.
As part of this strategy, the Commission adopted a proposal for the EU’s first ever Nature Restoration Law in June 2022. This law combines an overarching restoration objective to restore nature in the EU’s land and sea areas over the long term with binding restoration targets specifically tailored to habitats and species in need.
The European Commission’s proposal
The proposed EU Nature Restoration Law – in full the proposal for a regulation of the European Parliament and of the Council on nature restoration – aims to achieve continuous, long-term and sustained recovery of a biodiverse and resilient nature by focusing on ecosystem restoration.
The proposed regulation has a broad scope and covers all territories (including sea areas) of the Member States. The regulation aims to restore all ecosystems in need by 2050.
➾ Targets: A key element of the proposed regulation are the restoration targets and obligations. These restoration targets are binding for the specific habitats and species listed in the annexes to the proposal. But they also allow for the gradual implementation of the restoration measures on different timelines. Outside Natura 2000 sites, an exception to the restoration obligations is included for projects of overriding public interest for which no less damaging alternative solutions are available. This exception is to be assessed on a case by case basis.
The final deadline to reach the targets is 2050, with intermediate deadlines set for 2030 and 2040.
➾ National restoration plans: To ensure compliance and effectiveness, Member States will be required to develop and submit national restoration plans to the Commission in which they should identify restoration measures to be implemented to reach the targets. The plans should cover the period up to 2050, taking into account the intermediate deadlines.
The Commission will regularly review and assess these plans.
➾ Right to access justice: The proposed regulation also contains a right to access justice. This allows individuals with sufficient interest to challenge the legality of national restoration plans before a court of law or an equivalent independent or impartial body.
The Vice-President of the European Commission, Frans Timmermans, publicly stated that there is no way that we will save the climate without saving nature and stressed that the success of the Green Deal rests on the ability for nature to regenerate. However, it is uncertain whether the regulation will be adopted and in which form, as criticism of the draft proposal is emerging from the other EU institutions.
The Council of the European Union’s position
On 20 June 2023, the Council adopted its general approach regarding the Commission’s proposal. While the approach largely agrees with the text, certain provisions have been modified to grant the Member States more flexibility in fulfilling their obligations.
The Council’s amendments primarily concern non-deterioration requirements, addressing knowledge gaps, providing flexibility mechanisms for ecosystem-specific obligations and reducing the burden of national restoration plans.
Additionally, the Council has included a new article that enables renewable energy projects to benefit from a derogation to the obligations of continuous improvement and non-deterioration.
Negotiations on the final text can now start as the Parliament has agreed on a general position.
Growing political resistance
The Nature Restoration Law proposal, as part of a broader environmental regulatory agenda, has faced opposition from certain EU politicians.
In late May, French President Emmanuel Macron expressed his concerns that an overwhelming wave of legislation could cause an unstable regulatory environment, harming investments and causing apprehension among industrial players.
Similarly, Belgian Prime Minister Alexander De Croo called for a pause on the Nature Restoration Regulation, urging a focus on addressing climate change rather than introducing new green legislation on biodiversity and chemical pollution.
As a result of this political disapproval, the proposed Nature Restoration Law potentially faced a deadlock at the European Parliament.
Key concerns
Because of the uncertainty of the impact of the proposal and the measures to be adopted in the national restoration plans, certain economic sectors are worried and, in some cases, inflated information on the proposal is spreading.
Opposition parties primarily argue that the law will impose an excessive burden on the agricultural sector. To ensure long-term food security it will be necessary to adopt sustainable systems and move away from the current intensive agricultural practices. By restoring ecosystems and preserving biodiversity, the food sector will ultimately reap long-term benefits.
Another argument raised against the implementation of the proposal is that the perceived cost outweighs the benefits. However, according to the European Commission and various economic studies, every euro invested in nature restoration adds between 8 and 38 euros of economic value. These benefits come from the many services provided by healthy ecosystems, such as the pollination of agricultural crops.
In addition to economic considerations, biodiversity plays a critical role in combating climate change. Forests and oceans are instrumental in regulating the global climate by capturing and storing certain greenhouse gasses, particularly carbon dioxide. These measures are vital if we are to achieve international climate objectives and the EU’s 2050 neutrality goal.
However, it is to be expected that individual establishments, who have a negative impact on ecosystems falling within the scope of this proposal, will indeed be impacted. It remains to be seen how the restoration plans will be shaped by the Member States.
Overall, the Nature Restoration Law proposal, despite the short-term concerns, offers significant advantages in terms of sustainable food production, economic value and climate change mitigation.
Vote held at the European Parliament
On 12 July 2023, a vote held at the European Parliament to fully reject the proposal narrowly failed. Later in the day, a vote in favour of the proposal was adopted, solidifying the Parliament’s general position. A narrow majority was obtained: 336 votes to 300, with 13 abstentions.
With both the Parliament and the Council having adopted their negotiating position on the Commission’s text, the next step is to start the trialogue. This process will determine the final shape of the legislation.
Conclusion
Biodiversity and ecosystems are a fundamental pillar of the EU Green Deal. This has led to the development of the Biodiversity Strategy 2020.
As a significant component of the strategy, the Nature Restoration Law, proposed by the Commission in June 2022, plays a crucial role. The proposal aims to restore ecosystems in need and preserve the ones that are still in good condition. The main mechanisms of the proposal are the binding restoration targets and the requirement for Member States to adopt national plans to reach these targets.
The proposal is at the centre of political debates, both at EU level and among national officials. The adoption of the proposal is still uncertain and will be followed closely by our integrated environmental and planning law team of experts at PwC Legal Belgium.
