Since August 2024, EU law requires the active restoration of degraded ecosystems. A clear-eyed look at targets, timelines and the consequences for natural capital markets.

“81 % der Lebensräume in der EU befinden sich in einem schlechten Zustand. Jeder investierte Euro bringt bis zu 38 Euro an Nutzen zurück.” “81% of habitats in the EU are in poor condition. Every euro invested returns up to 38 euros in benefits.”

— Europäische Kommission, 2024

What is the Regulation — and how did it come about?

Regulation (EU) 2024/1991 on nature restoration entered into force on 18 August 2024. It forms part of the EU Biodiversity Strategy for 2030 and is the first EU law to make the active restoration of already degraded ecosystems legally binding — not merely the protection of existing nature.

The political path was rocky. The European Parliament’s environment committee initially rejected the Commission’s original proposal — an unusual step. Only after intensive negotiations and amendments did the plenary adopt a revised version in July 2023. The Council followed in June 2024. The controversy reflects a fundamental conflict of interests: for farming associations and conservative parties, the law means restrictions on land use; for conservation organisations, it is a historic milestone.

The Targets at a Glance

The Regulation sets targets across three time horizons:

  • By 2030: At least 20% of the EU’s land and sea areas are under active restoration. 25,000 km of rivers are restored to free-flowing status. The decline in pollinators is halted and reversed. No net loss of urban green space and tree canopy cover.
  • By 2040: Restoration measures are extended to further ecosystems — with specific percentages per habitat type defined in the Regulation’s annexes.
  • By 2050: All ecosystems that need restoration are in good condition.

The Regulation covers a wide range of ecosystems: wetlands, forests, grasslands, rivers and lakes, heathlands, dunes, marine habitats (including seagrass meadows), agricultural lands, and drained peatlands.

National Restoration Plans: The decisive level

The central implementation instrument is the National Restoration Plan (NRP). Every member state must submit its NRP to the European Commission by September 2026, setting out which areas will be restored, by what means, and to what timeline.

For Germany, this means that the responsible federal authorities — the Federal Environment Ministry and the Federal Agency for Nature Conservation — are currently developing this plan in coordination with the Länder. The deadline is tight. The spatial footprint for restoration measures will become substantially clearer once the NRP is published.

What this means for natural capital markets

For investors and landowners, the regulatory logic is critical: the law creates demand for restoration services without fully securing public financing. The European Commission itself acknowledges that the annual investment requirement will substantially exceed public budget capacity. Private finance — through eco-points, biodiversity offsets, PES mechanisms — thereby shifts from being a supplement to a structural necessity.

Three concrete transmission channels can be identified:

  • Compensation obligations remain and grow: Germany’s impact mitigation regulation (Eingriffsregelung under BNatSchG) — the foundation of the German eco-point system — remains fully in force. At the same time, rising compensation demand from new infrastructure projects (energy transition, housing) increases the structural demand for offset areas.
  • New instruments taking shape: The Regulation explicitly encourages member states to develop innovative financing instruments. Pilot programmes for nature-based payments to farmers and landowners are already being tested in several EU countries.
  • Value appreciation of restored land: In a regulatory-activated market, land with documented restoration measures and measurable ecological improvements will command a valuation premium. Landowners who position early benefit from the scarcity of suitable areas.

The number that matters

The European Commission puts the economic benefit of the Regulation at 4 to 38 times the investment cost — depending on ecosystem type and methodology. This is not green wishful thinking but the result of economic cost-benefit analyses that monetise services including flood protection, water purification, pollination, and carbon storage.

For landowners, this means: the value of a piece of land is no longer defined solely by its agricultural or development potential. Ecological condition, restoration potential, and position within the EU’s regulatory target system are increasingly price-relevant factors.

Outlook: What comes next?

The most important date in 2026: September 2026 is the submission deadline for the National Restoration Plans of all member states. Their publication will make visible, for the first time across all of Europe, exactly which areas are targeted for restoration and where — information of considerable significance for valuing land portfolios and planning offset projects.

Source: Regulation (EU) 2024/1991 of the European Parliament and of the Council of 24 June 2024 on nature restoration. Official Journal of the European Union, L 2024/1991, 29 July 2024. Entry into force: 18 August 2024.