EUROPEAN COMMISSION Brussels, 22.6.2022 SWD(2022) 167 final COMMISSION STAFF WORKING DOCUMENT



IMPACT ASSESSMENT

Accompanying the proposal for a Regulation of the European Parliament and of the Council on nature restoration {COM(2022) 304 final} - {SEC(2022) 256 final} - {SWD(2022) 168 final}



Table of contents LIST OF ABBREVIATIONS GLOSSARY 1.Introduction: Political and legal context 1.1.Political context 1.2. Legal context 2.Problem definition 2.1. What are the problems? 2.3. Who is affected by the problem? 2.4. How will the problem evolve? 3.Why should the EU act? 3.1. Legal basis 3.2. Subsidiarity: necessity of EU action 3.3. Subsidiarity: added value of EU action 4.Objectives: What is to be achieved? 4.1. General objective 4.2. Specific objective 4.3. Intervention logic 5.What are the available policy options?

5.1.What is the baseline from which options are assessed? 5.2. Description of the policy options 5.3. Options discarded at an early stage 6.What are the impacts of the policy options? 6.1.Impacts of policy Option 1 (Baseline) 6.2.Impacts of policy Option 2 (Legally binding overarching target) 6.3.Impacts of policy Option 3 (Ecosystem-specific targets) 6.4.Impacts of policy Option 4 (Ecosystem-specific targets and an overarching objective) 7.How do the options compare? 8.Preferred option 9.How will impacts be monitored and evaluated? Annex i: procedural information annex ii: stakeholder consultations Annex iii: who is affected and how? Annex iv: analytical methods Annex v: specific targets considered for the main ecosystem types Annex vi: analysis by ecosystem 1. Inland wetlands 2. Coastal and other saline wetlands

3. Forests 4. Agro-ecosystems 5. Steppe, heath, scrubland, dune and rocky habitats 6. Freshwater: rivers, lakes and alluvial habitats 7. Marine ecosystems 8. Urban ecosystems 9. Soils 10. Pollinators 11. Cost estimates for different speeds of restoration Annex vii: description, trends and impacts of the main options 1 Baseline 2. Option 2: Overarching target covering all or most eu ecosystems 3. Option 3 and option 4 4. Costs of enabling measures Annex viii: background information for potential restoration targets Annex ix: evaluation of the EU Biodiversity Strategy to 2020: summary of key relevant findings 1. The EU Biodiversity Strategy to 2020 2. Evaluation of the EU Biodiversity Strategy to 2020 3. Key findings of relevance to the EU nature restoration targets 4. Key lessons and their relevance to the nature restoration initiative

Annex x: coherence with eu legislation and policy initiatives related to nature restoration; approach to non-deterioration Annex xi: restoration frameworks in member states Annex xii: financing options at eu level



LIST OF ABBREVIATIONS BDS2030 Biodiversity Strategy for 2030 BHD Birds and Habitats Directives CAP Common Agricultural Policy CBD Convention on Biological Diversity CFP Common Fisheries Policy EEA European Environment Agency ELD Environmental Liability Directive EMFAF European Maritime Fisheries and Aquaculture Fund HD Habitats Directive IPBES Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services LAU Local Administrative Unit LULUCF Land use, land use change and forestry MAES Mapping and Assessment of Ecosystems and their Services MBIs market-based instruments MSFD Marine Strategy Framework Directive NEC Directive National Emission reduction Commitments Directive (Directive (EU) 2016/2284) NGO Non-governmental organisation NRP National Restoration Plan UNCCD UN Convention to Combat Desertification UNFCCC UN Framework Convention on Climate Change WFD Water Framework Directive



GLOSSARY Term Meaning or definition Biodiversity Biodiversity means the variability among living organisms from all sources including terrestrial, marine and other aquatic ecosystems and the ecological complexes of which they are partand includes diversity within species, between species and of ecosystems. Cities Cities means Local Administrative Units where at least 50 % of the population lives in one or more urban centres, in line with the Methodological Manual on Territorial Typologies EUROSTAT 2018 . Ecosystem An ecosystem is a dynamic complex of plant, animal, and microorganism communities and their non-living environment, interacting as a functional unit and includes habitat types, habitats of species and species populations. Ecosystem condition Ecosystem condition is the quality of an ecosystem measured in terms of its abiotic and biotic characteristics and defined via key ecosystem attributes. Ecosystem degradation Degradation (of an ecosystem) means a level of harmful human impact that results in the loss of biodiversity and simplification or disruption in its composition, structure, and functioning (i.e. condition), and generally leads to a reduction in the flow of ecosystem services. Favourable reference area Favourable reference area is the total area of a habitat type in a given biogeographical region or marine region at national level that is considered the minimum necessary to ensure the long-term viability of the habitat type and its species, and all its significant ecological variations in its natural range, and which is composed of the area of the habitat type and, if that area is not sufficient, the area necessary for the re-establishment of the habitat type. Good (ecosystem) condition Good condition means a state where the key characteristics of an ecosystem, namely physical, chemical, compositional, structural and functional state, and landscape and seascape characteristics, reflect a high level of ecological integrity, stability and resilience necessary to ensure the long-term maintenance of an ecosystem. Good ecosystem status Good ecosystem status means that the ecosystem is in good condition, the areas it covers are stable or increasing and sufficiently large, covering the natural range of the ecosystem. Green urban space Green urban space means groupings of 1) green urban areas, including trees and groups of trees, green roofs and green walls, 2) urban forests and 3) herbaceous vegetation associations, as defined according to the mapping guidance of the EU Urban Atlas, found within the Local Administrative Units; Habitat types Habitat types are sub-units of ecosystems as defined by the European Nature Information System (EUNIS) habitat classification or Annex I of the Habitats Directive (Directive 92/43/EEC). Habitat of a species A habitat of a species is an environment defined by specific abiotic and biotic factors, in which the species lives at any stage of its biological cycle. Indicator An indicator is a sign that shows the condition or existence of something. Indicators of ecosystem recovery Characteristics of an ecosystem that can be used for measuring the progress towards restoration goals or objectives at a particular site (e.g., measures of presence/absence and quality of biotic or abiotic components of the ecosystem). Key ecosystem attributes of ecosystem condition Key ecosystem attributes assist with the definition of an ecosystem and its condition and the evaluation of progress of ecosystem recovery. They relate to the highest attainable absence of threats, physical and chemical conditions, species composition, structural diversity, ecosystem function, and external exchanges. Local administrative unit Local administrative unit is a low-level administrative division of a Member State below that of a province, region or state, established in accordance with Article 4 of Regulation (EC) No 1059/2003 of the European Parliament and of the Council. Nature-based solutions Solutions that are inspired and supported by nature, which are cost-effective, simultaneously provide environmental, social and economic benefits and help build resilience. Such solutions bring more, and more diverse, nature and natural features and processes into cities, landscapes and seascapes, through locally adapted, resource-efficient and systemic interventions. Nature-based solutions must benefit biodiversity and support the delivery of a range of ecosystem services. Pollinator Pollinator is a wild animal which transports pollen from the anther of a plant to the stigma of a plant, enabling fertilisation and the production of seeds. Pollinator decline Pollinator decline or decline of pollinator populations means a decrease in abundance or diversity, or both, of pollinators. Restoration Restoration is the process of actively or passively assisting the recovery of an ecosystem towards or to good condition, of a habitat type to the highest level of condition attainable and to its favourable reference area, of a habitat of a species to a sufficient quality and quantity or of species populations to satisfactory levels, as a means of conserving or enhancing biodiversity and ecosystem resilience. ·Restoration is thereby considered the activity (which includes both active and passive restoration measures). ·Recovery is thereby considered the outcome sought or achieved through restoration. Full recovery is defined as the condition whereby, following restoration, all key ecosystem attributes closely resemble those of the reference condition (=good condition) Ecosystem restoration includes measures taken for the improvement of the condition of an ecosystem but also the re-establishment (also referred to as ‘re-creation’) of an ecosystem where it was lost as well as measures to improve connectivity of ecosystems. Active/passive restoration: ·Passive restoration eliminates the factors of degradation and disturbance and permits natural regeneration of the ecosystem. ·Active restoration eliminates the source of degradation and disturbance of an ecosystem and implements measures to accelerate its recovery and to overcome obstacles to that recovery. Restoration measure ‘Restoration measure’ means any activity assisting ecosystem recovery actively or passively towards or to good condition and enhancing biodiversity, including measures taken for the improvement of the condition of an ecosystem or for the re-establishment of natural and semi-natural ecosystems, as well as measures to improve the connectivity of natural and semi-natural ecosystems, and to enhance species populations, also across national borders. Restoration objectives Restoration objectives are defined qualitative and quantitative aims regarding the desired condition and area of the ecosystems / habitat types to be restored. Sufficient quality and quantity of a habitat of a species Sufficient quality and quantity of a habitat of a species means the quality and quantity of a habitat of a species which allows the ecological requirements of a species to be fulfilled at any stage of its biological cycle so that it is maintaining itself on a long-term basis as a viable component of its habitat in its natural range. Sufficient quality of a habitat of a species Sufficient quality of a habitat of a species means the quality of a habitat of a species which allows the ecological requirements of a species to be fulfilled at any stage of its biological cycle. Towns and suburbs Towns and suburbs means LAUs where less than 50 % of the population lives in an urban centre, but at least 50 % of the population lives in an urban cluster, in line with the Methodological Manual on Territorial Typologies EUROSTAT 2018. Urban green space Urban green space means all green urban areas, broad-leaved forests, coniferous forests, mixed forests, natural grasslands, moors and heathlands, transitional woodland-shrubs and sparsely vegetated areas found within LAUs classified as cities or towns and suburbs, calculated on the basis of data provided by the Copernicus Land Monitoring Service as established by Regulation (EU) 2021/696 of the European Parliament and of the Council. Urban tree canopy cover Urban tree canopy cover is the total area of tree cover within cities and towns and suburbs, calculated on the basis of the Tree Cover Density data provided by the Copernicus Land Monitoring Service , under the classification of ‘vertical projection of tree crowns to a horizontal earth’s surface’ as established by Regulation (EU) 2021/696 of the European Parliament and of the Council, expressed as a percentage of the total LAU area.

1.Introduction: Political and legal context 1.1.Political context The value of biodiversity and ecosystems has been globally recognised since the Earth Summit in Rio de Janeiro in 1992. Yet, despite efforts at European and international level, biodiversity loss and the degradation of ecosystems continue at an alarming rate in the European Union (EU) and globally. This is widely documented, notably by several IPCC reports,, the Global Resources Outlook, the IPBES report, the Global Biodiversity Outlook 5, and the Dasgupta Review. Ensuring healthy nature, through restoration and protection, is essential for our long-term survival, wellbeing, prosperity and security. Healthy ecosystems provide food, clean water, carbon sinks, protection against growing disaster risks due to climate change, as well as boosting resilience and preventing the emergence and spread of zoonotic diseases. The 2022 IPCC report6 highlighted that there is a brief, rapidly closing window to secure a liveable future, as the rise in weather and climate extremes has led to some irreversible impacts as natural and human systems are pushed beyond their ability to adapt. It calls for the implementation of urgent actions for the restoration of degraded ecosystems, to mitigate the impacts of climate change, notably by restoring degraded wetlands and rivers, forest and agricultural ecosystems. The report underlines that climate change and biodiversity loss are the biggest long term threats to food security in the EU. Furthermore, recent geo-political developments have underlined the need to safeguard food security and the resilience of food systems. Evidence shows that restoring agro-ecosytems has positive impacts on food productivity in the long-term, and more biodiverse and resilient agricultural ecosystems are needed to enhance food security and reduce dependence of imports. The restoration of nature acts as an insurance policy to ensure the EU’s long-term sustainability and resilience, against all these challenges. More decisive action is needed in the EU to protect and restore biodiversity – including through legal instruments – for the Union to achieve its own climate and biodiversity objectives. The evaluation of the EU Biodiversity Strategy to 2020 shows that the EU did not manage to halt the loss of biodiversity in the EU in the 2011-2020 period. The voluntary target to restore by 2020 at least 15 % of degraded ecosystems, in line with the global commitment under the Convention on Biological Diversity, Aichi Target 15 was equally not met. The overall picture for biodiversity and ecosystems is bleak and points to the fact that the current approaches are not delivering. The European Green Deal underlined the importance of protecting and restoring nature. The EU biodiversity strategy for 2030 set targets to protect nature in the EU, but also underlined that protection alone will not be enough. To reverse biodiversity loss, much more is needed to bring back nature to good health across the EU in protected areas and beyond. The strategy thus includes an ambitious EU nature restoration plan. As part of this plan, the Commission committed to put forward a proposal for legally binding EU nature restoration targets in 2021 to restore degraded ecosystems, and in particular those with the most potential to remove and store carbon and to prevent and reduce the impact of natural disasters. The primary aim is to reverse biodiversity loss. Other sectoral strategies of the European Green Deal such as the Zero Pollution Action Plan, the Circular Economy Action Plan, the Forest Strategy, the new Soil Strategy, the Farm to Fork Strategy , the EU Adaptation Strategy and the climate-neutrality ambition by 2050 , and the so-called Fit for 55% package all will have a positive bearing on biodiversity. However, policy measures without enforceable restortation objectives are unlikely to halt and reverse the current trend of biodiversity degradation in the EU. The European Parliament and the Council have also highlighted the need to step up efforts to restore ecosystems, for instance in the Council Conclusions of December 2019 (the Council “ stressess the need for urgent additional commitments to halt biodiversity loss, protect and restore terrestrial, freshwater, wetlands and marine ecosystems within and outside protected areas […]”) and in the European Parliament’s resolution of January 2020 (which asked to “move away from voluntary commitments and to propose an ambitious and inclusive Strategy that sets legally (and, consequently, enforceable) binding targets for the EU and its Member States"). In its resolution of 9 June 2021, the European Parliament “strongly welcomes the commitment to draw up a legislative proposal on the EU nature restoration plan, including on binding restoration targets”. The resolution emphasised that the legislative proposal, in addition to an overall restoration target, should also include ecosystem-, habitat- and species-specific targets, that it should include forests, grasslands, wetlands, peatlands, pollinators, free-flowing rivers, coastal areas and marine ecosystems, that restoration should contribute to biodiversity as well as to climate change mitigation and adaptation, and stressed the importance of ensuring non-deterioration of restored ecosystems.

Public support for nature restoration is very high and the engagement to protect and restore nature among citizens, and especially among youth, is on the rise. In the Eurobarometer survey on biodiversity (2018-2019), respondents ranked restoration of nature among the most important actions that the EU should take to protect biodiversity. This public interest is also apparent in the replies (in number and in content) to recent public consultations on nature-related initiatives. Healthy nature delivers a range of services to the society and businesses. Worldwide, the loss of ecosystem services is estimated at about ten trillion euros per year3, more than five times the entire value of agriculture in the market economy. Yet nature’s value goes beyond economic goods and services: most EU citizens highly value its very existence and recognise its intrinsic worth, consistently identifying ecological degradation as an urgent concern. The restoration of ecosystems is high on the international agenda. The 2050 vision under the Convention on Biological Diversity, the United Nations Convention to Combat Desertification (UNCCD), the 2030 Agenda for Sustainable Development and the UN Decade for Restoration, all call for the protection and restoration of ecosystems. The Convention on Biological Diversity – agreed at the Rio Summit – will hold an important Conference of the Parties (COP15 starting in October 2021) which is expected to conclude a new Global Biodiversity Framework including ambitious restoration targets to be agreed by the end of 2022. The EU is taking leadership on the global stage to mobilise the international community, all the stakeholders and society at large, to take action to halt the loss of biodiversity. The EU’s Biodiversity Strategy for 2030 is a blueprint to make this a reality in the EU and to project the EU’s commitment also at global level. The nature restoration proposal announced in the Strategy will send a strong signal to the global community that the EU is taking its commitment seriously and aims to enshrine ecosystem restoration targets into law. Restoration will also help meet the EU’s commitments under the United Nations Framework Convention on Climate Change (UNFCCC), and its Paris Agreement, as ecosystems such as peatlands, wetlands, oceans and forests can, when they are in good condition, remove and store large amounts of carbon dioxide and are also instrumental in contributing to climate change adaptation. Nature and the restoration of ecosystems was one of the five main priorities for the 26th United Nations Climate Change Conference of the Parties (COP 26). Restoring nature across the EU is among the core pillars of the European Green Deal. It is intrinsically linked to achieving the Union’s biodiversity and climate change objectives. The restoration objectives are specifically spelled out in the Biodiversity Strategy’s headline ambition to ensure that that Europe's biodiversity is on the path to recovery by 2030 and that by 2050 all ecosystems are restored, resilient, and adequately protected. The EU Adaptation Strategy also calls specifically for scaling up nature-based solutions such as ecosystem restoration as they will help adapt to climate change in a cost-effective way. Restoring nature would thus significantly contribute to the EU’s climate mitigation and adaptation objectives, and to the EU’s international commitments. 1.2. Legal context 1.2.1. Existing EU legislation relevant to ecosystem restoration EU environmental law includes legislation that has a positive bearing on the restoration of EU ecosystems. For instance, the Birds Directive (BD) requires Member States to not only maintain bird habitats but also re-establish destroyed biotopes for birds. The Habitats Directive (HD) aims to maintain or restore, at favourable conservation status, natural habitats and non-bird species of wild fauna and flora of Community interest. The Water Framework Directive (WFD) aims at achieving good status of all EU freshwaters, ground waters, transitional waters and coastal waters by 2015 (with extensions up to 2027).​ The Marine Strategy Framework Directive (MSFD) currently under review, aimed at achieving and maintaining good environmental status of all the EU's marine waters by 2020 and to protect the resource base upon which marine-related economic and social activities depend. The Environmental Liability Directive (ELD) establishes a framework based on the polluter pays principle to prevent and remedy environmental damage. The Invasive Alien Species Regulation provides for a set of measures to be taken acrosse the EU in relation to invasive alien species included in the Union list. All these pieces of legislation contribute to the improvement and restoration of ecosystems but together the outcomes are largely insufficient to address the extent and scale of the problem. Further details of the reasons for some of the policy and legislative failures are given in chapter 2. As part of the European Green Deal, a variety of initiatives are underway which will be relevant to the restoration of ecosystems. These include the new legal framework for the Common Agricultural Policy, the European Climate Law, as well as the set of proposals put forward in July 2021 that form the Fit for 55 package, which comprises notably the proposals to revise the Regulation on land use, land use change and forestry (LULUCF), the Energy Efficiency Directive, the Renewable Energy Directive as well as the EU Forest Strategy. Ecosystem restoration will also be facilitated by the new carbon farming initiative and by the law on soil health which is announced in the EU Soil Strategy for 2030. An overview of existing and forthcoming initiatives and explanation of their relevance is included in Annex X. 2.Problem definition 2.1. What are the problems? 2.1.1 General problem: biodiversity loss and degradation of ecosystems in the EU The EU-wide ecosystem assessment, also called MAES-report, published by the European Commission in 2021, brings together for the first time EU-wide and commonly agreed data sets that can be used to assess the state and trends of ecosystems and their services as well as the pressures and their trends they are exposed to. It contributes substantially to our understanding of ecosystems, their degradation and threat so as to guide priority and cost-effective restoration efforts. Figure 2 below shows the proportion (area) of the EU ecosystem types which is covered by the Habitats and the Birds, Water Framework and Marine Strategy Framework Directives, and the area which is part of the Natura 2000 network. It also shows that large areas of EU ecosystems, primarily heavily modified ones such as urban, cropland and forests are not covered by those pieces of legislation due to their main use for production, habitation or infrastructure and thus do not benefit from the same level of protection, restoration and monitoring requirements. As a result, the condition of these ecosystems is less known. However,the continuous decline of common farmland bird species on agricultural land, the rise in clear-cut forest harvesting, evidence of soil degradation and erosion affecting 25% of agricultural land and the dramatic decline of insects and pollinators all point to a need for improvement. Evidence from the Horizon ‘Soil Health and Food’ Mission suggests that 60-70 % of EU soils are in unhealthy condition and costs associated with soil degradation in the EU exceed 50 billion € per year.

Annex VIII provides information on the distribution, condition, pressures and trends for the EU ecosystems which Member States report on under the Habitats Directive. Annex VI provides further data and analysis on these ecosystems and beyond, covering for instance also soils, pollinators and urban ecosystems. A comprehensive overview is also available in the EU Ecosystem Assessment. In summary, the problem is clear: biodiversity loss and the degradation of ecosystems continue at an alarming rate in the EU (albeit not at equal rate). This degradation is evident across the main EU ecosystem types: wetlands, forests, agro-ecosystems (including grassland and cropland), marine ecosystems, heathland, scrub, sparse vegetation, lakes, rivers and alluvial ecosystems, urban ecosystems and soils. Their restoration is central to ensure human health, wellbeing and for tackling and adapting to climate change. Figure 4 shows the relative area covered by the main ecosystem types in the EU and the sum of their area. Their geographical distribution is presented in Figure 5 (more detailed maps are in Annex VIII). It should be noted that soils are considered as a cross-cutting ecosystem in its own right, that underpin most terrestrial ecosystems. Note that the figures and tables in this chapter result from reports and data compiled before 2021 (based on data until 2018), and thus they cover the EU and the UK (EU-28). Information on ecosystem-specific data availability is provided in the ecosystem-specific assessments in Annex VI. 2.1.2. Specific problem: ecosystem restoration efforts have been insufficient so far As stated in the EU Biodiversity Strategy for 2030: “Protecting the nature we have will not be enough to bring nature back into our lives. To reverse biodiversity loss, we need to be more ambitious on nature restoration.” Protecting an ecosystem does not guarantee that it will evolve spontaneously to good condition – and degraded ecosystems that are not protected also need to be restored. The state of ecosystems covered under EU environmental legislation has not improved over the past decade and their condition is to a large part deteriorating. The EU Ecosystem Assessment highlights the need to avoid further degradation and to restore degraded ecosystems. In some cases, passive restoration, by removing pressures, can be sufficient, so that ecosystems can recover by themselves. In other cases, degraded ecosystems need active restoration intervention to recover and become more resilient. In some cases, ecosystem re-creation is needed when land has been transformed into entirely other types of use, so that the ecosystem cannot simply evolve back (see glossary on different types of restoration). Enhanced ecosystem restoration, both passive and active, would significantly contribute to addressing all of the key drivers of biodiversity loss and ecosystem degradation. For instance, passive restoration can involve the easing of pressures (e.g. overexploitation in marine areas or forests, or air or water pollution). These can help ecosystems recover by themselves to an extent. Active restoration entails actions to help ecosystems that have been damaged beyond their capacity to recover alone, for example re-establishing former land use or remodelling land or seascapes. Other active restoration actions require removing alien species or removing pollutants directly from the ecosystem (e.g. soil remediation, cleaning up litter). Beyond removing local pressures, restoration will also help reducing key drivers of biodiversity loss on a wider scale, for example, wetland restoration contributes to capturing carbon and mitigating climate change effects such as flooding. Findings of the evaluation of the EU Biodiversity Strategy to 2020 indicate that the voluntary target to maintain and restore ecosystems has not been achieved. Further results from the evaluation are available in Annex IX. The EEA’s State of Nature in the EU report also points towards the gap in restoration, while deterioration continues and climate impacts and risks increase. Furthermore, the underlying drivers of soil degradation are not projected to change favourably by 2030. Based on Member States’ reporting, the EEA has made estimates of restoration needs to bring habitats listed in Annex I of the Habitats Directive (representing 24% of the EU land area and 4.8% sea area) to favourable conservation status (see detailed data in Annex VIII). The estimates show that significant areas of the EU need to be restored (Table I per habitat type and further broken down in Table II, III and IV). As explained in 2.1.1, the condition of terrestrial ecosystems outside of Annex I habitats, (the remaining 76% of land), because they are not subject to the same protection regime or conservation measures, is likely to be worse and thus their restoration needs are likely to be higher. The specific problem is that ecosystem restoration across the EU has been insufficient so far, while ecosystems continue to degrade.





Ecosystem based on Annex I types (N° of Annex I habitat types) Surface1 Annex I habitats in km² Condition in km² & % Overall restoration needs in km² Area re-establishment (min/max) Improvement in condition (min/max) Good Not good Unknown Wetlands2 (inland & coastal) (28) 174 400 62 950 36% 27 100 16% 84 300 48% 3 131 6 910 27 100 111 400 Forests3 (69) 357 952 162 300 45% 79 210 22% 116 444 33% 3 487 8332 79 210 195 000 Agro-habitats and grasslands4 (35) 177 442 84 150 47% 31 180 18% 62 100 35% 2 431 8 798 31 180 93 000 River, lakes, alluvial and riparian habitats5 (32) 96 480 52 970 55% 21 560 22% 21 950 23% 894 2 743 21 560 38 000 Heath & scrub6 (21) 78 582 43 420 55% 6 590 8% 28 600 36% 405 928 6 586 35 000 Rocky and (Coastal) & dunes (41) 65 135 30 048 46% 6 619 10% 28 500 44% 355 1 458 6 619 35 100 Total Terrestrial 949 990 435 838 46% 172 259 18% 341 894 36% 10 703 29 1698 172 255 505 5009 Total restoration terrestrial: 182 985 – 536 669 km² 10 Marine7 (4) 240 030 36 810 15% 34 830 15% 168 390 70% 1 622 3 424 34 828 203 200 Total restoration marine: 36 450 – 206 624 km² 11 1 Areas of Annex I terrestrial habitats reported by Romania exceed the terrestrial area of the Member State; therefore, they were excluded from all numbers in the table. 2 All wetland Annex I habitats (definition of wetlands by the Ramsar Convention) except rivers, lakes, alluvial and riparian habitats, which form a distinct group. 3 All Annex I habitats in the group ‘Forests’, except wet, alluvial and riparian forests and wooded meadows, which were included in other groups (wetlands, rivers & lakes, agro-habitats). 4 Includes Annex I habitat types, mostly semi-natural, that depend on some degree of agricultural activity (e.g. mowing, grazing) and grasslands. 5 Includes all Annex I river and lake habitats and several riparian and alluvial habitats (meadows and forests). 6 Includes all Annex I heath, scrub and steppe habitats, except wet heaths (included in the wetlands group) and some heath and scrub that depend on agricultural activities. 7 Only includes near- and offshore Annex I marine habitats. 8 This means 0,3-0,75% of EU land 9 This means 4,4-13% of EU land 10 This means a total restoration need of 4,7-13,8% of EU land 11 This means 0,65 – 3,7% of EU seas Member State Member State surface in km² Overall restoration needs (all ecosystems) in km² TERRESTRIAL Overall restoration needs in km² MARINE Area re-establishment (min/max) Area improvement (min/max) Total restoration area (min/max) % of MS territory (min/max) (min/max) Austria 83 944 229 / 846 1 215 / 4 778 1 444 / 5 624 1.7 / 6.7 n.a. Belgium 30 683 106 / 515 571 / 2 410 677 / 2 925 2.2 / 9.5 477 / 1867 Bulgaria 110 995 0 / 0 223 / 5 030 223 / 5 030 0.2 / 4.5 0 / 117 Cyprus 9 249 0 / 0 265 / 269 265 / 269 2.9 / 2.9 0 / 0 Czechia 78 874 0 / 1 881 / 2435 881 / 2 435 1.1 / 3.1 n.a. Germany 362 177 531 / 1 752 4 813 / 7 058 5 344 / 8 811 1.5 / 2.4 3 354 / 11 944 Denmark 44 162 22 / 102 3 179 / 8 224 3 508 / 8 942 7.9 / 20.2 12 391 / 17 702 Estonia 45 382 0 / 0 907 / 1 962 907 / 1 962 2.0 / 4.3 91 / 852 Spain 506 222 1 466 / 3 026 25 017 / 110 384 26 483 / 113 410 5.2 / 22.4 82 / 12 814 Finland 338 004 3 166 / 6 334 19 348 / 80 619 22 514 / 86 953 6.7 / 25.7 573 / 3 024 France 551 881 866 / 2 650 72 826 / 91 385 73 693 / 94 035 13.4 / 17.0 2 720 / 26 832 Greece 132 014 48 / 96 602 / 7 156 650 / 7 253 0.5 / 5.5 3 564 / 7 176 Croatia 55 590 32 / 66 319 / 6 842 351 / 6 908 0.6 / 12.4 0 / 798 Hungary 93 012 127 / 335 3 417 / 4 693 3 544 / 5 029 3.8 / 5.4 n.a. Ireland 70 699 313 / 640 5 180 / 5 657 5 493 / 6 297 7.8 / 8.9 3 014 / 24 542 Italy 301 321 3 035 / 10 175 2 216 / 57 158 5 251 / 67 333 1.7 / 22.3 0 / 3 981 Lithuania 65 289 70 / 140 308 / 4 436 378 / 4 576 0.6 / 7.0 0 / 285 Luxembourg 2 595 9 / 18 125 / 146 134 / 164 5.2 / 6.3 n.a. Latvia 64 590 1 / 3 1 091 / 3 138 1 092 / 3 141 1.7 / 4.9 985 / 1 038 Malta 316 0 / 0 17 / 17 17 / 17 5.5 / 5.5 4 / 69 Netherlands 39 898 97 / 353 1 026 / 2 952 1 123 / 3 305 2.8 / 8.3 8 916 / 10 236 Poland 312 683 22 / 44 14 044 / 14 439 14 066 / 14 483 4.5 / 4.6 220 / 220 Portugal 92 378 126 / 253 1 612 / 6 117 1 737 / 6 369 1.9 / 6.9 0 / 65 290 Romania 238 404 979 / 1 959 11 704 / 55 023 12 683 / 56 982 5.3 / 23.9 1 889 / 1945 Sweden 450 110 298 / 1 474 10 925 / 74 646 11 223 / 76 120 2.5 / 16.9 61 / 17 891 Slovenia 20 274 87 / 244 2 015 / 2 599 2 103 / 2 843 10.4 / 14.0 <1 / <1 Slovakia 49 026 51 / 102 137 / 9 548 188 / 9 649 0.4 / 19.7 n.a.



MINIMUM ecosystem areas (km2) for restoration (improvement + re-establishment) MS area (km2) Wetlands Rivers & lakes Grasslands & agri Forests Heath & scrub Rocky & dunes Terrestrial AT 83.944 36 164 127 603 12 502 1.444 BE 30.683 26 259 118 238 0 36 677 BG 110.995 0 222 0 1 0 0 223 CY 9.249 3 17 4 216 26 0 265 CZ 78.874 17 170 227 461 0 5 881 DE 362.177 1.814 1.374 899 1.179 16 62 5.344 DK 44.162 1.387 550 352 642 0 271 3.201 EE 45.382 464 53 93 290 0 7 907 ES 506.222 482 639 6.602 14.602 3.762 396 26.483 FI 338.004 10.794 3.661 24 5.676 1.980 379 22.514 FR 551.881 1.030 6.873 14.701 46.949 77 4.069 73.699 GR 132.014 303 37 52 204 39 15 650 HR 55.590 1 205 116 29 0 0 351 HU 93.012 603 663 670 1.525 2 81 3.544 IE 70.699 3.753 928 692 19 54 47 5.493 IT 301.321 279 504 1.653 2.313 255 247 5.251 LT 65.289 84 84 143 56 0 11 378 LU 2.595 0 3 129 1 0 0 134 LV 64.590 367 200 122 355 0 48 1.092 MT 316 0 0 5 0 7 5 17 NL 39.898 614 103 139 88 0 179 1.123 PL 312.683 1.706 3.831 4.224 4.133 15 157 14.066 PT 92.378 350 37 230 261 739 120 1.737 RO 238.404 2.355 3.273 2.815 3.702 12 526 12.683 SE 450.110 6.132 1.655 1.867 1.250 0 320 11.223 SI 20.274 4 202 366 1.509 7 15 2.103 SK 49.026 5 25 57 96 3 1 188 Total EU27 4.149.772 32.609 25.730 36.429 86.400 7.003 7.501 195.671 Total without RO 3.911.368 30.254 22.457 33.614 82.698 6.991 6.974 182.988





Condition: area reported in 'not-good' condition: in need of improvement. Zeros often reflect that most areas have been reported as 'unknown condition' Additional: for re-establishment: based on minimum Favorable Reference Areas. MINIMUM ecosystem areas (km2) for restoration (improvement and re-establishment) Wetlands Rivers & lakes Grasslands Forests Heath & scrub Rocky & dunes condition Additional condition Additional condition additional condition additional condition additional condition additional Terre-strial AT 27 9 107 57 22 104 590 13 12 0 456 46 1.444 BE 17 9 231 28 99 19 192 45 0 0 31 5 677 BG 0 0 222 0 0 0 1 0 0 0 0 0 223 CY 3 0 17 0 4 0 216 0 26 0 0 0 265 CZ 17 0 170 0 227 0 461 0 0 0 5 0 881 DE 1.773 41 1.177 197 665 234 1.129 50 16 0 54 7 5.344 DK 1.382 4 550 0 334 17 642 0 0 271 0 3.201 EE 464 0 53 0 93 0 290 0 0 7 0 907 ES 482 1 553 85 6.536 65 13.608 994 3.476 286 360 35 26.483 FI 8.413 2.381 3.660 1 18 7 4.901 775 1.980 0 377 1 22.514 FR 788 243 6.678 195 14.428 273 46.922 28 77 0 3.941 127 73.699 GR 261 42 36 1 52 0 204 0 39 0 11 5 650 HR 0 0 202 2 102 14 14 15 0 0 0 0 351 HU 603 0 608 55 607 63 1.520 5 2 1 79 3 3.544 IE 3.527 226 928 0 611 82 19 0 54 0 42 4 5.493 IT 191 88 291 213 590 1.064 845 1.468 136 119 163 84 5.251 LT 77 7 83 1 140 3 0 56 0 9 3 378 LU 0 0 2 1 122 7 1 0 0 0 0 0 134 LV 367 0 200 0 122 0 355 0 0 47 1 1.092 MT 0 0 0 0 5 0 0 0 7 0 5 0 17 NL 560 54 96 7 126 14 81 8 0 164 15 1.123 PL 1.702 3 3.820 12 4.218 7 4.133 0 15 0 157 0 14.066 PT 338 12 37 0 130 100 261 0 739 0 107 14 1.737 RO 2.251 104 3.027 247 2.500 315 3.401 301 0 12 526 0 12.683 SE 6.125 7 1.650 5 1.585 282 1.250 0 0 0 315 4 11.223 SI 3 0 177 25 306 60 1.508 2 7 0 15 0 2.103 SK 3 2 17 8 43 14 69 27 3 0 1 0 188 Total EU27 29.374 3.235 24.589 1.140 33.683 2.746 82.612 3.788 6.586 417 7.145 355 195.671 without RO 27.124 3.131 21.563 894 31.183 2.431 79.211 3.487 6.586 405 6.619 355 182.988 2.1.3. Consequences/why is it an issue Biodiversity loss and ecosystem collapse are one of the biggest threats facing humanity in the next decade because our lives are directly dependent on healthy ecosystems. They also threaten the foundations of our economy and the costs of inaction are high and are anticipated to increase. Insufficient restoration and the further undermining of ecosystem resilience pose significant risks to the security of supply of critical supporting ecosystem services, such as nutrient and water cycles, soil formation, carbon sequestration and pollination. These in turn put at risk the delivery of key provisioning ecosystem services, such as food, freshwater, bio-materials, cultural services (recreation, education, tourism, aesthetics) and rural livelihoods as well as regulating services, such as disease regulation, air and water quality and security, as well as climate change and disaster risk mitigation and adaptation. Furthermore, forests, grasslands, wetlands, peatlands, marine and soil ecosystems can take up and store large amounts of carbon from the atmosphere. Degradation or loss of these ecosystems not only reduces the capacity of the valuable natural carbon sinks but can also have the effect of releasing greenhouse gasses and thus, contribute to climate change. Securing healthy ecosystem and tackling climate change are intrinsically linked. The IPCC Special Report on the impacts of global warming of 1.5°C points out that climate-related risks depend on the rate, peak and duration of warming, and some impacts may be long-lasting or irreversible, such as the loss of some ecosystems. More biodiverse and better connected ecosystems are more resilient to climate change. Many land and ocean ecosystems and some of the services they provide have already changed due to global warming. Approximately 4% of the global terrestrial land area is projected to undergo a transformation of ecosystems from one type to another at 1°C of global warming, compared with 13% at 2°C. In addition, healthy ecosystem significantly contribute to carbon sequestration and storage. Although wetlands occupy only between 5% and 8% of the earth’s total land surface, they hold 35% or more of organic carbon that is stored in soils. Yet when such ecosystems are degraded, their role is reversed, and drained or damaged wetlands are a major source of greenhouse gas emissions, with current rates of release of damaged wetlands estimated at nearly 6% of global human CO2 emissions. Healthy ecosystems are also important for disaster risk reduction & control and to reduce the negative impacts, including economic losses. For example, in case of heavy rainfall, functioning floodplains along rivers and wetlands can buffer large amounts of water and thus protect downstream villages and cities from floods. Such ecosystems that act like sponges, can also mitigate the impacts of extreme draught. Coral reefs, seagrass and mangroves protect coastlines from waves and storms. Forested slopes and vegetation help stabilise soil, protecting people and their assets from erosion and landslides. When these ecosystems disappear or degrade, so does their risk-reducing capacity. The overall poor and degrading condition of ecosystems represents a significant economic risk to society, a problem that is also reported at global level. The recent IPCC 2022 report6 points out that biodiversity loss, and degradation, damages to and transformation of ecosystems are already key risks for every region due to past global warming and will continue to escalate with every increment of global warming. At the same time, climate conservation, protection and restoration of ecosystems reduces the vulnerability of biodiversity to climate change. Thus, safeguarding biodiversity and ecosystems is fundamental to climate resilient development. Climate change will increasingly put pressure on food production and access, especially in vulnerable regions, undermining food security and nutrition. At the same time agroecological principles and practices, ecosystem-based management in fisheries and aquaculture, and other approaches that work with natural processes support food security, nutrition, health and well-being, livelihoods and biodiversity, sustainability and ecosystem services. Thus restoring ecosystems will be fundamental in helping to combat climate change and also reduce risks to food security. Over half of global GDP depends on nature and the services it provides and more than 75 % of global food crop types rely on animal pollination. The in-depth global Dasgupta Review, on the economics of biodiversity, made an urgent call to ensure that our demands on nature do not exceed its supply, and that we must tackle the nature crisis in conjunction with the climate emergency for the sake of our economies, livelihoods and well-being - and those of future generations. As documented in the EU 2021 Strategic Foresight Report, the cost of these environmental challenges is estimated at EUR 3.5-18.5 trillion per year in ecosystem services from 1997 to 2011, which were lost globally owing to land-cover change, and an estimated loss of EUR 5.5-10.5 trillion per year due to land degradation. There is also a link between between climate change, biodiversity loss, environmental degradation and public health: loss of biodiversity, pressure on animal habitats combined with other factors can make future pandemics or diseases more likely. The failure to restore ecosystems will also have repercussions for the EU to meet its international commitments, as under the Convention on Biological Diversity (CBD), the UN Convention to Combat Desertification (UNCCD), the UN Framework Convention on Climate Change (UNFCCC) and the Paris Agreement (see 1.1. Political context), and to lead by example. Also the EU’s domestic commitments in the EU Green Deal as the new economic strategy, including the climate package with strengthened focus on natural sinks, cannot be delivered on without restoring nature. Finally, it needs to be recognised that nature is more than an economic good or service: and most EU citizens highly value its very existence and recognise its intrinsic worth, a natural heritage that should be respected and protected on a par with cultural heritage so that it can continue to benefit future generations. Healthy ecosystems present a range of aesthetic, spiritual and restorative values to people, as it became particularly evident during the COVID-19 pandemic, which cannot always be expressed in quantitative or monetary terms. Economic estimates can give some monetary estimates of the value of specific ecosystem services, however as underlined in the Dasgupta review absolute values of nature are likely to be meaningless, since without nature life would cease to exist, and as the review summarises: “economics, when used with care, is meant to serve our ethical values”.



2.2. What are the problem drivers? According to the State of Nature Report, the EU Ecosystem Assessment and the IPBES report, the main drivers of biodiversity loss and ecosystem degradation are changes in land and sea use, over-exploitation of natural resources, climate change, pollution and invasive alien species. The drivers are, to an extent, being addressed by EU legislation such as the Birds and Habitats Directives, the Marine Strategy Framework Directive, the Water Framework Directive and the Regulation on Invasive Alien Species. However, despite significant effort and some progress, the existing EU legislation has so far not led to a significant recovery of the targeted ecosystems. The reasons for these failures have been examined and are covered in detail later in this section. Furthermore, not all ecosystems that suffer degradation, such as forests and agricultural ecosystsems, are comprehensively covered by the above-mentioned legislation. A number of the drivers and pressures on biodiversity are being addressed to a degree by the actions under the Biodiversity Strategy for 2030 together with other initiatives under the European Green Deal (e.g. Zero Pollution, Circular Economy, Farm to Fork, Soil Strategy, Forest Strategy, Adaptation Strategy, climate neutrality), but it is too early for these to show results. They will have positive contributions to restoration but on their own, will not be sufficient to meet tangible verifiable restoration objectives (see sections 2.4 and 5.1).

The evaluation of the Biodiversity Strategy to 2020 has also revealed insufficient progress towards restoration. Therefore, there is a significant and specific problem to be addressed, the insufficient restoration of degraded ecosystems due to policy and legislative failures, which is therefore the focus of this impact assessment. Specific policy drivers: policy and legislative failures The main policy failures can be broken down in 1) ineffectiveness of voluntary targets, 2) shortcomings in existing legislation, and 3) lack of a comprehensive and coherent approach. 1)Voluntary targets have been ineffective In 2011, a key voluntary target of the EU Biodiversity Strategy to 2020 was to restore at least 15 % of degraded ecosystems by 2020. This voluntary target has not been met. The evaluation study of the Biodiversity Strategy to 2020 identified, among the reasons for the failure in ecosystem restoration, the voluntary rather than legally binding nature of the targets. The subsequent lack of commitment and political priority for restoration activities is regarded as a key barrier leading to a lack of financing and resources being allocated to restoration. On the other hand, another target of the Biodiversity Strategy to 2020 on invasive alien species that was made legally binding, with the adoption of a new regulation, did result in this target being implemented to a large extent and in benefits that would not have been delivered if they would have been voluntary. Reasons why the voluntary restoration target has not been met, include: oLack of obligation for Member States to act: Despite the guidance developed and the explicit request by the Commission, only a few Member States developed the strategic frameworks to set priorities for ecosystem restoration, and restoration progress has been slow and uneven. The absence of these strategic frameworks has been a barrier to the strategic planning, financing, implementation and monitoring of restoration activities. The fact that the guidance was followed by some Member States suggests that developing such frameworks was feasible. However, in the absence of an obligation and of a linked dedicated EU-level governance framework to steer the process and regularly review progress, most Member States did not follow on the commitment, to deliver such strategic frameworks and to effectively prioritise restoration, leading to insufficient funding and insufficient restoration effort. This indicates that a stronger and more binding framework is needed with clear targets, resource planning, monitoring and enforcement mechanisms to support strategic planning and implementation and to ensure delivery. oThe formulation of the target as an overall percentage of degraded ecosystems: In the absence of an agreed methodology to comprehensively map, assess, monitor and report on the condition of ecosystems , progress towards reaching the target was not measurable. The Mapping and Assessment of Ecosystems and their Services initiative (under Action 5 of the Biodiversity Strategy to 2020) has made progress in developing an EU methodology and enhancing knowledge on the condition of EU ecosystems and their services. However, there are still significant data gaps for certain ecosystems, such as marine, soils, forests, and agro-ecosystems. This has made it impossible for Member States to assess their performance against the voluntary target. oBiodiversity targets of a voluntary nature were not systematically prioritised for funding in the design and implementation of EU instruments in other policy areas, and measures of low or no positive biodiversity impact were often favoured in national programming. 2) Shortcomings in existing legislation The evaluation of the Biodiversity Strategy to 2020 and of the main pieces of relevant legislation have revealed implementation problems, reflecting the complexity of the issues at hand. Beyond that, a number of shortcomings remain, since aspects of legislation are not sufficiently specific, time-bound or measurable to achieve restoration objectives. For instance: The Habitats Directive (HD) sets an objective to maintain or restore, to favourable conservation status, natural habitats and species of Community interest, but without deadlines or timeframes, i.e. there are no time-bound targets to reach favourable conservation status. The Birds Directive sets a similar objective for all species of naturally occurring birds in the wild state in the EU, also without a deadline to reach secure status. Both directives also lack effective requirements to restore habitats outside the Natura 2000 network. The Fitness Check of the Birds and Habitats Directives (2016) found that the directives are fit for purpose, but fully achieving their objectives and realising their full potential will depend on substantial improvement in their implementation. In particular, it found that the lack of precise timelines/targets makes it difficult to fully judge whether progress is in line with expectations, and it is not possible to determine when the general objectives of the directives will be achieved. The pace of implementation of measures towards favourable conservation status has been very slow; action has been concentrated in setting up Natura 2000 sites and to date it has been mainly linked to protection of the habitats and species in the sites, rather than to their restoration. The most frequently reported factors affecting implementation are funding availability, stakeholder awareness and cooperation and availability of knowledge, as well as ineffective integration with other policies. All in all, this underlines that explicit, well-defined time-bound targets are needed, accompanied by effective enabling measures, including planning, monitoring, reporting and funding. The Marine Strategy Framework Directive (MSFD) sets out a broad goal to achieve good environmental status in EU marine territories by 2020. The 2020 report from the Commission on the first implementation cycle of the directive concludes that progress in reaching good environmental status has not been fast enough. In particular, the broad goal of the Marine Strategy Framework Directive has proven very difficult to achieve; the reasons for that include the lack of specific measures, lack of sufficiently fine-grained monitoring of specific habitats or species, coupled with a lack of specific focussed targets. This does not cater for, and hinders, the needed specific restoration measures for specific habitats or species, that need to be rapidly addressed. The Water Framework Directive (WFD) sets out an obligation to restore all water bodies to good status by 2015, with the latest deadline by 2027. The Fitness Check of the Water Framework Directive and Floods Directive (2019) concluded that the Water Framework Directive is broadly fit for purpose. However, the objective of reaching good (ecological and chemical) surface water status has not been reached – only 40 % of water bodies are in good ecological status. This difficulty in implementation is in part due to the fact that the water body condition is affected by diffused pollution (e.g. nitrates and pesticides) coming from surrounding habitats (the catchment). These, if restored and protected, would help accelerate progress. Another factor is that the WFD does not necessarily require the removal of barriers that may disrupt the natural connectivity of a river/lake system (only where this would be required to achieve good status and with possible exemptions where justified). However, many terrestrial ecosystems, such as wetlands and floodplains and several habitats and species protected by the Birds and Habitats Directives, directly depend on the aquatic ecosystems being in near natural conditions (free-flowing state). Thus, the WFD may not be sufficiently equipped to guarantee such natural connectivity to the extent necessary to sustain these habitats and species and guarantee thriving floodplains. Furthermore, while the WFD addresses all waters in the EU, the methodologies prescribed to delineate the water bodies, which are the units of measures for compliance checks, are such that smaller rivers or lakes below a certain size threshold may in practice not be fully addressed. These shortcomings can be addressed with supplementary restoration requirements. 3) Lack of a comprehensive approach Ecosystems underpin much of our livelihoods, yet there is a lack of a policy approach to deal with the broad range of ecosystems in a comprehensive manner. Ecosystems are dealt with separately by different pieces of legislation, which has resulted in some challenges in coordinated implementation. Although there are differences in their objectives, the Birds and Habitats Directives (BHDs), the Water Framework Directive (WFD), and the Marine Strategy Framework Directive (MSFD) are generally coherent with each other and mutually reinforcing. The Fitness Check of the BHD has nevertheless revealed some challenges in implementation that need to be addressed. This is particularly relevant where these Directives interact, for example water bodies whose status depends on their surrounding riparian habitats, and should be dealt with in an integrated way to achieve specific restoration objectives, such as for flood plains. Moreover, there are habitats/species/ecosystems that are not or insufficiently covered by legislation. While the Birds Directive aims to protect all wild bird species and their habitats across the EU, its most specific provision on habitat protection (Article 4) only concerns bird species listed in Annex I of the directive as well as regularly occurring migratory species not listed in Annex I. For those species, Member States must set up Special Protection Areas which form part of the Natura 2000 network. The provision concerning the preservation and restoration of the habitats of all bird species (Article 3) provides a general obligation which is largely not implemented. Hence, many bird habitats are, in practise, not subject to protection and restoration measures. The Habitats Directive (HD) covers 1 200 threatened or endemic species of wild animals and plants, collectively referred to as species of Community interest (listed in its Annexes II, IV and V), as well as 231 rare habitat types, listed in its Annex I. Its provisions that are most relevant for restoration mainly relate to Annex I habitats as well as habitats of the species listed in Annex II within Special Areas of Conservation (part of the Natura 2000 network). For those Annex I habitats and habitats of Annex II species that are located outside Natura 2000, there is no specific provision on restoration, albeit the achievement of the directive’s objective would require this to happen. The same goes for species listed in Annex IV and V of the directive, for which no specific habitat restoration provisions are set, in spite of the objective to maintain or restore them, at favourable conservation status. Moreover, for habitats of the protected species which do not overlap with Annex I habitats, the restoration requirements only concern the necessary action to address the ecological requirements of the protected species, including birds, while there is no requirement to implement restoration for any other purposes. The Natura 2000 network on land currently covers 18% of the EU surface (764 000 km2), ranging from 8,3% in Denmark to 36,7% in Croatia, which reflects differences in biodiversity richness but also different designation strategies by the Member States. The network covers approximately 34% of the surface of all Annex I habitat types, which means that about two thirds lies outside.

Therefore, it can be concluded that – as regards the Habitats and Birds Directives - the areas for which there is no effective provision on restoration cover all land and sea that do not fall within Natura 2000 sites, i.e. the majority of the EU territory, large parts of which are undergoing continuous degradation (EU Ecosystem Assessment 2020). Although protection and restoration of habitats (e.g. peatlands) under the Birds and the Habitats Directive will benefit soil health and soil biodiversity, this is not an explicit objective of the Directives. Soil health and soil biodiversity are not yet covered by EU legislation in an explicit comprehensive and coherent manner. As stated in the State and Outlook of the Environment Report 2020 (EEA): “The lack of a comprehensive and coherent policy framework for protecting Europe’s land and soil resources is a key gap that reduces the effectiveness of the existing incentives and measures and may limit Europe’s ability to achieve future objectives related to development of green infrastructure and the bioeconomy”. The legislative proposal (‘Soil Health Law’) announced in the recently adopted EU Soil Strategy for 2030 is expected to address this. For these reasons, soil-related legal obligations will be taken up in that proposal. Furthermore, although some pollinators are protected under the Habitats Directive (e.g. rare butterfly species) and they also benefit from habitat conservation measures (e.g. for grasslands) they are not a particular focus of the Nature Directives. Finally, there is no EU legislation requiring the restoration of urban ecosystems. The key policy and legislative failures can be summarised as follows: 1)Voluntary targets have not been effective and have not led to the achievement of the agreed EU voluntary restoration targets in the EU Biodiversity Strategy to 2020. 2)There are significant shortcomings and gaps in existing legislation to address restoration effectively (for example there are no terrestrial time-bound targets, there is a lack of specific provisions on restoration, etc). 3)Many ecosystems are not covered by legislation, and are degraded, representing significant areas of the EU territory. This includes soils and some forests, grasslands and urban ecosystems. Furthermore, key species groups such as pollinators are not covered by legislation. 4)The lack of a common methodology for assessing ecosystem condition for these ecosystems not covered by existing legislation blocks progress since condition cannot be measured consistently. Whilst better implementation of existing legislation would improve the situation, it would not be sufficient to address the problem of reversing the trend of biodiversity loss and restoring ecosystems. To address the policy gaps and shortcomings mentioned above, new legislation is needed. This should supplement the existing legal instruments to protect nature, with additional means to restore nature in order to reverse these downward trends. In other words, to halt and reverse biodiversity loss, protection of nature needs to be supplemented by more efforts to restore degraded ecosystems. The new legislation should build on and work in synergy with existing legislation, but go further to ensure that restoration can be addressed explicitly and extensively across the EU. 2.3. Who is affected by the problem? The poor condition of ecosystems and the decline of biodiversity impacts on the whole of society, through the loss of ecosystem services, which support economic activity and human livelihoods. The World Economic Forum has identified biodiversity loss as the third most pressing global risk by severity for the next decade, after climate action failure and extreme weather. Biodiversity loss has critical implications for the whole population, from the collapse of food and health systems to the disruption of entire supply chains. Over half of global GDP depends on nature and the services it provides, with three key economic sectors – construction, agriculture, and food and drink – all highly dependent on it. The Banque the France found that 42% of the market value of securities held by French financial institutions comes from issuers (non-financial corporations) that are highly or very highly dependent on at least one ecosystem service. The degradation of ecosystems particularly affects farmers, foresters, landowners, fishers, the water sector and agri-food sectors, the insurance sector (increased impact of disasters), the financial sector (investments dependent on biodiversity) and the tourism sector. At the same time society as a whole also stands to gain significant benefits once ecosystem health is improved. The OECD estimates that the world lost EUR 3.5-18.5 trillion per year in ecosystem services from 1997 to 2011 owing to land-cover change, and an estimated EUR 5.5-10.5 trillion per year from land degradation. Although figures for the EU were not specifically calculated, one can deduce corresponding losses for the EU. Soil erosion costs European countries and farmers EUR 1.25 billion per year solely in loss of agricultural productivity. Furthermore, biological diversity of microorganisms, flora and fauna also provides extensive benefits for biological, health, and pharmacological sciences. Loss in biodiversity would limit discovery of potential treatments for many diseases and health problems. Loss of biodiversity including pollinators in agricultural soils is also a threat to food production and food quality affecting farmers and citizens alike. Moreover, there are costs of at least EUR 169 billion per year due to poor management of oceans such as over-exploitation of fisheries, nutrient pollution and invasive marine species carried in ship ballast water. Degraded ecosystems also have a reduced capacity to mitigate and adapt to climate change, so that people and nature will face more severe consequences such as heat, drought, wildfires, floods and other disasters, when ecosystems continue to decline. However, biodiversity conservation and nature restoration can avoid many of these costs. They have potential direct economic benefits for many sectors of the economy. For example, conserving marine stocks could increase annual profits of the seafood industry by more than EUR 49 billion, while protecting coastal wetlands could save the insurance industry around EUR 50 billion annually through reducing flood damage losses. In addition, the Nature Fitness Check showed that the benefits of Natura 2000 are valued at between EUR 200-300 billion per year. The investment needs of the network are expected to support as many as 500,000 additional jobs. For example in the forestry sector a first estimate suggests that Natura 2000 supports 73,000 jobs. Box 1: Views of stakeholders and authorities on the problem, its impacts and drivers in the EU: A series of Eurobarometer surveys over the past years indicate that the overwhelming majority of European citizens consider the various effects of biodiversity loss to be serious for humans and for nature, and agree that it is important to halt its loss (eight out of ten in the last survey published in 2019). The biggest perceived threats to biodiversity are pollution of air, soil and water, man-made disasters and climate change. EU citizens overwhelmingly agree that nature protection areas are very important and they are not willing to trade damage or destruction of protected areas for economic development. An open public consultation on the evaluation of the EU Biodiversity Strategy to 2020, carried out jointly with the public consultation on the nature restoration targets, explored the drivers as well as impacts on stakeholders from the failure to halt biodiversity loss. A key reason for failure noted by stakeholders in open text responses related to the lack of integrated, holistic approaches to halting biodiversity loss. EU citizens and academic/ research institutions noted that conflicts can arise in the management of biodiversity predominantly due to contrasting approaches between Member States’ and EU/international decision making and diverging economic interests amongst actors in implementing biodiversity-related measures. Furthermore, a ‘lack of enforceability’ of the Strategy was regarded as a reason for failure by some stakeholders (EU citizens and an academic), followed by poor definition of the targets. Asked about impacts on themselves or on their field of work, more respondents identified significant impacts since 2011 (48%) compared to those who did not identify impacts (33%). In the open public consultation and consultation workshops on the definition of nature restoration targets, stakeholders from environmental organisations pointed to the voluntary nature of the restoration target in the past as a reason for the failure to implement it. The majority of respondents in the Open Public Consultation who ‘completely disagreed’ that the voluntary nature of the target had undermined its delivery were forestry-related. The majority of stakeholders who ‘fully agreed’ or ‘tended to agree’ that unresolved conflicting land use interests were a factor belonged (in decreasing order) to the forestry, environment and culture sectors. The lowest number of respondents considered that insufficient knowledge and skills had been a barrier. Insufficient funding and conflicting land use interests were the answers most often selected by forestry sector stakeholders. How the views of stakeholders and authorities have been taken into account: The problems and drivers identified by the stakeholders are taken into account in this impact assessement and are addressed by the proposed policy option. Threats such as pollution are largely being addressed by other EU initiatives and legislation, however, nature restoration will in many cases also entail reduction of (the impacts of) pollution, and will, in turn, contribute to cleaner water and air. The EU proposal on restoration targets will provide for a more harmonised approach in the EU, with objectives which are in line with international ambitions and commitments. The synergies with and added value to existing legislation, such as the Birds and Habitats Directives, the Climate Law and the LULUCF Regulation, will ensure the called-for integrate approach. The lack of enforceability and poor definition of targets, as well asl their voluntary nature, is addressed by this proposal as it sets specific, binding targets with clear deadlines and reporting obligations. The issue of conflicting land use interests will be (at least partially) addressed by enabling measures, for instance by pointing towards financial opportunities at EU-level e.g. for developing alternative incomes based on the provision of ecosystem services.





2.4. How will the problem evolve? As described in Chapter 2, biodiversity loss and degradation of ecosystems continues in the EU, and the restoration efforts to improve the condition of ecosystems have been largely insufficient. Halting all greenhouse gas emissions would still not prevent the impacts of climate change that are already occurring. These will continue for decades, even if global and European efforts to cut greenhouse gas emissions prove effective. Studies suggest that up to half of Europe’s land area may experience major climate-induced changes during this century , . Marine ecosystems and the oceans are also projected to change significantly . Estimates of how the problem will evolve are also described in the evolution of the baseline for each main ecosystem type in the thematic assessments in Annex VI. Annex VII provides a description of the trends of the baseline in broad terms. The initiatives under the Biodiversity Strategy for 2030 and under the European Green Deal (see Chapter 1) can help to tackle several of the drivers and pressures of ecosystem degradation, and the set of existing and upcoming policy measures of the Green Deal can be expected to help ecosystems to recover to a small degree, for instance by contributing to passive restoration, for instance by reducing pollution or reducing over-exploitation (see policies and their relevance to restoration in Annex X). However, the analysis of their overall impacts indicates that this does not sufficiently address the problem (Annex VII see baseline) and extensive restoration will not be achieved by these policies. Many degraded ecosystems require focussed and location-specific passive restoration measures, as well as a range of location-specific active restoration measures. All of these are needed for ecosystems to recover. Thus, without significant intervention, the problem of the lack of restoration will continue and persist across the EU. Biodiversity and ecosystems and the need to restore nature is at the core of the Green Deal, and the economic transformation of the Green Deal goes hand in hand with having healthy ecosystems. Failure to address the problem of restoration will pose risks to addressing core objectives of the Green Deal, including reaching climate neutrality. EU climate policy is increasingly relying on natural sinks to capture and store carbon (such as in the LULUCF Regulation). Ecosystems, such as wetlands or forests, need to be in a heathy state in order to be able to effectively capture and store carbon. Likewise, more biodiverse and healthy ecosystems are more resilient to climate change and also provide more effective form of disaster reduction and prevention. Healthy croplands and grasslands, rich in biodiversity and pollinators are needed in order to assure crop provision in terms in quantity and quality, and without these the likely evolution of the problem would increase the likelihood of not reaching objectives of strategies of the Green Deal such as the Farm to Fork Strategy. In summary, because of the various shortcomings and gaps in the existing legislation as described above, this will not by itself be able to drive a restoration agenda. In the absence of binding restoration targets and proper planning, monitoring, reporting and enforcement mechanisms, the problem of poor ecosystem condition risks to be further aggravated. This would also significantly hamper reaching the objectives of the Green Deal. 3.Why should the EU act? 3.1. Legal basis The legal basis is Article 192(1) of the Treaty on the Functioning of the European Union​. On the basis of this provision, the Union can take action to achieve the objectives of Article 191: Union policy on the environment shall contribute to pursuit of the following objectives: - preserving, protecting and improving the quality of the environment, - protecting human health, - prudent and rational utilisation of natural resources, - promoting measures at international level to deal with regional or worldwide environmental problems, and in particular combating climate change.

3.2. Subsidiarity: necessity of EU action Intervention at EU level is justified in view of the scale and transboundary nature of biodiversity loss and ecosystem degradation, the impacts of environmental degradation on citizens across the Union as well as the risks to its economy. Coordinated measures by all Member States are necessary to achieve significant levels of biodiversity and ecosystem restoration in the EU. The roll out of the Biodiversity Strategy to 2020 has shown that the voluntary commitments of Member States are not sufficiently conducive to reaching EU objectives for restoring ecosystems. Moreover, given that several ecosystems are already covered by EU legislation, EU action is needed to complement existing requirements where necessary and to fill policy gaps for ecosystems that are not yet fully covered. 3.3. Subsidiarity: added value of EU action ·Coordinated action is needed at a sufficiently large scale to address biodiversity loss and degradation and to benefit from synergies at that level. The more ecosystems are restored, the greater their capacity to reverse the decline of species and habitats. Working at European scale is essential, for instance for the recovery of birds and pollinators which is a problem across the EU and cannot be solved by only working in some Member States. Likewise, addressing problems at European scale is also essential given the extent of mobility of many terrestrial/aquatic/marine species and for addressing pressures such as aquatic and air pollution. In terms of synergies, restoring one ecosystem has positive effects on other neighbouring or connected ecosystems and their biodiversity, since many species thrive better in connected networks of ecosystems on a large geographical scale. ·EU-level action allows to address the transboundary nature of biodiversity-related and ecosystem degradation issues, including the pressures on ecosystems, which could not be tackled efficiently at Member State level alone. EU-level action brings effectiveness/efficiency gains. ·EU-level action is also needed to ensure a consistent approach to restoring towards good ecosystems condition across the EU. Without this there would be no common targets of what restoration efforts are aiming towards. ·Taking ambitious, coordinated action on biodiversity and ecosystem restoration at EU level, will give the EU the necessary credibility to ‘lead by example and by action’ at international level. ·Further analysis of subsidiarity for each of the policy options is presented in Chapter 7. Box 2: Views of stakeholders and authorities on the need for EU action. The feedback received on the Inception Impact Assessment roadmap (see Annex II for more analytical detail) revealed overall broad support for the EU initiative across NGOs, academia, business, citizens and other organisations. Some environmental NGOs and experts proposed that EU legislation should set binding targets for the individual Member States. However, most respondents (across stakeholder groups) considered that the selection of restoration sites and measures should be done at the national and sub-national level, and that the governance, monitoring and reporting framework should provide for this flexibility. Stakeholder views expressed in the open public consultation diverged significantly as concerns the level at which targets should be set. When all responses were considered, there was close to full support both for an overarching restoration goal (97%) and for specific targets for ecosystems (96%). When the responses submitted via the #RestoreNature campaign were isolated, none of the options for binding EU restoration targets received majority support. Stakeholders active in the forestry sector in Poland, who formed the majority of these respondents (55%), indicated relatively low support for an EU level target across all ecosystems (40%) and even lower support for ecosystem-specific EU restoration targets, while open responses indicated preference for the setting of targets at the national level and called for financial incentives. Open text respondents overwhelmingly supported subsidiarity for the Member States to determine restoration priorities, pointing to local social, historical and cultural knowledge, differences in economy and policy structures and biodiversity and ecosystems. A combined approach of EU restoration targets and Member States’ flexibility to plan restoration on the ground according to national features was broadly supported by Member States’ authorities and stakeholders at the consultation workshops. How views of stakeholders and authorities have been taken into account: The proposed policy option sets targets for Member States, but the prioritisation of restoration sites and selection of measures is left to Member States, in line with the principle of subsidiarity and allowing for flexibility in planning and to accommodate for local conditions. A combined approach is proposed, setting both an overarching restoration target as well as a range of ecosystem-specific targets.



4.Objectives: What is to be achieved? 4.1. General objective The general objective is that the EU’s biodiversity should be on the path to recovery and that all EU ecosystems should be restored. This general objective is in line with the Biodiversity Strategy for 2030 and supported by other initiatives under the European Green Deal. This general objective is at a level consistent with Article 192(1) of the Treaty on the Functioning of the European Union (see section 3.1 above). The implementation of the strategy is in progress, with a large number of specific actions being carried out. The more ecosystems are restored the greater their capacity to revert the decline of species and habitat types, thereby avoiding extinctions and regaining habitats and species in what is their natural range. In addition, the more biodiverse and better connected ecosystems we have, the greater is their capacity to adapt to climate change (by allowing species to migrate northwards and upwards) and the greater the overall resilience of Europe’s nature to predicted weather extremes. In addition (and as important), the more we restore ecosystems that capture and store carbon, the more contribution there is to climate policy in terms of climate adaptation and mitigation. Ecosystem restoration is an essential part of climate policy and vice versa: climate adaptation and mitigation is needed to prevent further biodiversity loss and ecoystems degradation. This should apply to all regions of the EU including the outermost regions, .

4.2. Specific objective Following from the general objective, the specific objective is: To restore degraded ecosystems across the EU, in particular those that have the most potential to ​remove and store carbon and prevent and reduce the impact of natural disasters; and to restore the broad range of ecosystems in the EU, with restoration measures in place by 2050 and ecosystems on the path to recovery by 2030. For the specific objective, one should note that: 1.The primary objective is an ecological one (i.e to improve the condition of ecosystems). However, improved ecosystem condition also goes hand in hand with the delivery of a range of ecosystem services that result from improved condition. Thus, the specific objective will naturally entail the improvement of a wide range of ecosystems services, of which climate mitigation and disaster risk reduction are particularly highlighted. The emphasis given to restoration that in particular contributes to climate mitigation and disaster risk reduction was specified in the Biodiversity Strategy to 2030. 2.To define the breadth of ambition and set dates for progress for the specific objective, further reference to the biodiversity strategy has been made. The strategy specifies that the EU’s biodiversity will be on the path to recovery by 2030, and that by 2050 all ecosystems are restored. Given that in practice it may not be possible to restore all ecosystems, the specific objective needs to address at least “a broad range” of ecosystems in the EU. Furthermore, given the dates specified in the Biodiversity Strategy, ecosystems should be restored by 2050 and on the path to recovery by 2030. This sets the breadth of ambition of the specific objective and provides milestones dates for progress for the specific objective. 3.The “broad range” of ecosystems to be addressed is taken to correspond to the main ecosystem types in the EU: wetlands, forests, agro-ecosystems (including grassland and cropland), marine ecosystems, heathland, scrub, rocky and dune habitats (which encompasses sparse vegetation), lakes, rivers and alluvial ecosystems and urban ecosystems. Carrying out restoration of these ecosystems would help improve their condition and restore biodiversity. Restoration of these ecosystems would also typically, and to varying degrees depending on the specific restoration carried out, contribute to removing and storing carbon and preventing and reducing the impact of natural disasters. The marine and terrestrial ecosystems in the EU’s outermost regions (including tropical and sub-tropical) are also included given their exceptionally high biodiversity value. 4.The condition towards or to which most ecosystems need to be restored – “good condition” – means a state where the key characteristics of an ecosystem, namely physical, chemical, compositional, structural and functional state, and landscape and seascape characteristics, reflect the high level of ecological integrity, stability and resilience necessary to ensure the long-term maintenance. For habitat types listed in Annex I and II the condition is assessed via the “structure and functions” parameter, as referred to in Article 1(e) of the Habitats Directive. Under the Nature Directives, Member States have elaborated for Annex I habitats what a good condition is and how it is monitored in their specific biogeographical circumstances. The result of the monitoring is reported , as part of the Conservation Status assessment under Art.17 of the Habitats Directive to the Commission every 6 years. 5.Restoration of ecosystems does not require to achieve a certain historic condition (e.g. cities don’t have to be reverted back into wetlands or forests, biodiverse grasslands do not have to be converted into forests, etc. ) but it considers current and predicted changes in environmental conditions. In the case of re-establishment of ecosystems, Member States would be expected to identify (where possible) where ecosystems were lost in the last 70 years in order to take this information into account when drafting their restoration plans and planning the areas of ecosystems to be re-)established. This does however not mean that they have to re-establish a situation as it was 70 years ago. 6.For ecosystems currently not covered by the Nature Directives, good condition will be defined by the EU-wide methodology to be set up in the context of the Nature Restoration Law implementation (as explained in 5.2.2 under ‘EU-wide methodology’). 7.Restoration not only includes measures to improve the condition of the ecosystems but also their re-establishment, in particular but not exclusively in the areas where they were lost. 8.One needs to also ensure that restored ecosystems and all others subject to the specific objective be maintained and do not (further) deteriorate (for example by ensuring protection or appropriate management). Restoration approaches need to take into account the fact that future restored ecosystems should be climate-resilient.

In order to put EU’s nature on the path to recovery by 2030, the initiative needs to act with urgency and lead to measurable results by that date. However, since data (e.g. on condition) and monitoring mechanisms are not available for all ecosystems, these would need to be developed based on a step-wise approach. This is described further in 5.2.1 in more detail; see also Figure 6. The specific objective would apply directly to Member States, taking into account Member States’ bio-geographical characteristics, as not all ecosystems are represented in each Member State (see Annex VIII for geographical distribution and condition per Member State). At EU level we would aim to reach the specific objective EU-wide and at Member State level we would aim to ensure that the appropriate efforts are put in place that will jointly help achieve the EU-level objective. Such appropriate efforts are later described in section 5.2.2 which outlines the implementation framework and the requirements placed on Member States for the options considered.

To ensure a good understanding of the objectives and the targets, it is important to note the difference between “restoration” and “recovery” (as outlined in the Glossary): To restore means that all the necessary measures (e.g blocking of wetlands drainage, re-introduction of needed species, etc.) have been put into place to enable the recovery of an ecosystem to get back to good condition. However, some ecosystems can take decades to recover even if all the restoration measures have been put into place. Thus, restoration measures can be put into place relatively quickly, but recovery to good condition can take more time to arrive at, depending also on the type of ecosystem. Box 3: Views of stakeholders and authorities on the general and specific objectives. Restoration for biodiversity improvement was considered moderate to high priority for the majority of respondents in the Open Public Consultation, as were the additional objectives of climate mitigation, adaptation and resilience, disaster risk reduction, air and water regulation, pollination, and human health. Open question responses from academic and research organisations and some sector stakeholder organisations further stressed the importance of an integrated strategy to support ecosystems restoration and socio-economic development. National authorities, restoration experts from the academia and environmental NGOs participating in the consultation workshops underlined the importance of reducing pressures and increasing ecological connectivity. Several environmental NGOs and restoration experts called for ensuring non-deterioration of both ecosystems that are restored, and those that are to be restored. Stakeholders ranging from national authorities in the Member States and NGOs to sector associations underlined the importance of ensuring links and complementarity with the objectives existing EU legislation and policies such as the BHD, WFD, MSFD, CFP, CAP and LULUCF. How views of stakeholders and authorities have been taken into account: The stakeholder feedback on connectivity and on non-deterioration has led to explicit incorporation of both principles (as requirements) in the proposal. Links and complementarity with existing EU legislation is also built in the proposal, for instance to limit the burden on Member States for monitoring and reporting (no duplication) and to ensure added value of the proposal. Operational objectives: ​ Following from the specific objective, and the rationale described in section 2.2, the operational objectives are to: ​ ·​Restore and maintain ecosystems to good condition by establishing legally binding nature restoration targets​, in a way that complements existing relevant instruments and fills EU policy and legal gaps. The targets should be ‘SMART’, i.e. specific, measurable, achievable, realistic and time-bound. ·Ensure that targets are properly implemented by establishing an effective implementation framework that includes requirements for monitoring, assessment, planning, reporting, enforcement, financing and capacity building, and when necessary, remedial or corrective action. Legally binding targets and an associated implementation framework are considered to be the appropriate instruments to fill the gaps identified in the problem definition because they would directly address the persisting restoration gaps as well as underlying policy and legislative failures outlined in section 2.2. Box 4: Views of stakeholders and authorities on the operational objectives: The Open Public Consultation results overwhelmingly supported the establishment of legally binding restoration targets (97 % in favour of general EU-level restoration targets across all ecosystems, 96 % for targets per ecosystem or habitat, 97 % for ‘other’ and 1 % for targets per species or group of species). The majority of this support was mobilised via the #RestoreNature campaign initiated by environmental NGOs, which included more than 95 % of the EU citizens participating in the consultation. Another specific segment of respondents, mostly citizens and stakeholders active in the Polish forestry sector, expressed preference for soft measures. The majority of all respondents supported EU action to improve knowledge and training, as well as cooperation with EU neighbours to restore cross-border ecosystems. At the consultation workshops, calls were made by authorities and stakeholders across the board to ensure support for restoration with enabling measures, with a special emphasis on funding (including compensation), as well as for measures to support community-led ecosystem restoration and management, knowledge, monitoring and research into the impacts of restoration. Passive restoration as well as measures to protect restored ecosystems and to ensure their non-deterioration and sustainable management were considered essential by restoration experts. How views of stakeholders and authorities have been taken into account: The proposal includes legally binding targets, both at an overarching level, as well as ecosystem-specific targets. In response to the need for ‘soft measures’ and ‘enebling measures’, such enabling measures have been included in the proposal. The impact assessment has shown, that soft (non-binding) measures alone would be insufficient to achieve the restoration objectives of the Biodiversity Strategy. Passive restoration as well as measures to ensure the non-deterioration of ecosystems have been included in the proposal. 4.3. Intervention logic 5.What are the available policy options? ©GettyImages

5.1.What is the baseline from which options are assessed? The baseline scenario assumes the implementation of the Green Deal and Biodiversity Strategy for 2030 with the exception of the legally binding restoration targets. Beyond that, the baseline also assumes that other EU and Member State policies relevant to restoration would be implemented. Information on national restoration policies is provided in Annex XI. The baseline scenario would therefore include: -Non-binding targets included in the EU Biodiversity Strategy to 2030 related to restoration, such as: no deterioration in conservation trends and status of all protected habitats and species by 2030 and that at least 30% of species and habitats not currently in favourable status are in that category or show a strong positive trend by 2030; 25 000 km of rivers is restored to be free-flowing; by-catch of species threatened with extinction is eliminated or reduced to a level that allows full recovery; and a reverse in the decline of pollinators. -Broad commitments for financing for biodiversity as well as potential market‑based instruments and voluntary approaches to remove harmful subsidies (as outlined in the Biodiversity Strategy for 2030). -Implementation of relevant EU policies and legislation, particularly the BHD, MSFD, WFD and those under the European Green Deal such as the Zero Pollution Action Plan, the Soil Strategy and Chemicals Strategy, the Fit for 55 Package (mainly LULUCF), the Climate Law, the proposed revision of the Renewable Energy Directive (RED) and the proposed Regulation on deforestation and forest degradation. -Implementation of national policies relevant to restoration. For the baseline scenario, we interpret “implementation” of relevant policies, voluntary commitments and legislation as “realistic”, based on expected implementation by Member States and based on experience to date (which has shown that implementation has not been perfect and with many insufficiencies). So specifically, it considers the “realistic” implementation of BHD, WFD, MSFD and climate laws (see Annex VII). Contribution of existing EU legislation and initiatives (see Annex VII for more details) The ‘realistic’ implementation of relevant EU environmental and climate legislation will contribute to the recovery of degraded ecosystems by addressing the drivers of biodiversity loss and ecosystem degradation. The Birds and Habitats Directives (BHD) are expected to see enhanced implementation towards 2030 as a result of the efforts resulting from the implementation of the Action Plan for nature, people and the economy that was developed following a thorough Fitness Check of the legislation. Following the completion of the Natura 2000 designation process on land, Member States are in the decisive phase of developing site-specific conservation objectives and measures (including restoration) which are critical to yield results on the ground. The Water Framework Directive (WFD) is also expected to see enhanced implementation in light of the deadline to achieve good status of water bodies by 2027, and the Fitness Check that identified some priorities for better implementation. There is, however, little likelihood that Marine Strategy Framework Directive (MSFD) implementation will improve towards 2030, as there are several implementation challenges for which it is too early to tell how effectively they will be tackled in the ongoing review. Moreover, the benefits of the review are unlikely to be felt in the short term. With the European Green Deal, biodiversity has become a political priority at the highest political level in the EU. The EGD sets out a strategy for a wide range of initiatives that have the potential to address some of the biggest drivers in ecosystems degradation. The Climate Law legally commits all Member States to achieve climate neutrality by 2050. To get on track towards this goal, the Fit for 55 package sets the EU on course to cut greenhouse gas emissions by 55 % by 2030 by introducing new and revised legislation on energy and climate. This would mainly help mitigate climate change. The revision of LULUCF, through reduced emission and increased carbon removal requirements for the land use sector, would in particular yield biodiversity co-benefits such as reduced tillage to enhance soil carbon, or increasing standing biomass in forests. The revision of the Renewable Energy Directive and related guidance has the potential of reducing negative impacts on forest ecosystems as a result of stricter requirements for using forest biomass for energy production. Other elements in this package are expected to have less notable effects on biodiversity. The Biodiversity Strategy for 2030 also contains other proposed objectives and initiatives that can contribute to the recovery of ecosystems. BDS2030 pillar 1 on protection outlines voluntary protection targets. The protection of at least 30% of EU land and sea will help promote passive and active restoration in these protected areas. The commitment ‘to ensure no deterioration in conservation trends and status of all protected habitats and species by 2030’ and ‘to ensure that at least 30% of species and habitats not currently in favourable status are in that category or show a strong positive trend’ will only be achieved if it goes hand in hand with a significant restoration of the ecosystems in which these habitats and species occur. BDS2030 pillar 2 on restoration provides some aspirational targets for restoration of agro-habitats for which the biodiversity strategy would work in tandem with the Farm to Fork Strategy. This sets voluntary commitments to increase organic farming, reduce pesticide and fertiliser use, introduce landscape features, and improve soil health. The EU Pollinators Initiative is furthermore currently being reviewed to put in place enabling measures with the aim of reversing the decline of pollinators by 2030. The latest Common Agricultural Policy agreement gives the opportunity to Member States to use funds for environmental purposes. However, all Member States face competing priorities, and the 2014-20 experience of greening measures is that they have made a limited contribution to improving the environmental performance of farming. This combined with past experience with voluntary commitments (as outlined in Section 2.2) makes that significant additional restoration cannot be expected unless Member States are mandated to achieve a certain level of restoration of degraded agro- or forest ecosystems. For restoring marine habitats, the biodiversity strategy sets out the commitment to reduce bycatch and damage to seabeds. To achieve this, the strategy not only relies on the MSFD but also on the Common Fisheries Policy and the Marine Spatial Planning Directive (MSPD). The evaluation of the Biodiversity Strategy to 2020 noted high negative biodiversity impacts and continuing overfishing in certain EU sea basins. In the Mediterranean, for instance, most stocks are still massively overfished while a large number of north-east Atlantic stocks are fished sustainably. As regards the MSPD, several Member States have not adopted their maritime spatial plans by the implementation deadline of the MSPD. While ongoing policy developments, such as strengthening national marine spatial plans, providing guidance on priority areas and improving knowledge, will surely focus minds on ecological objectives in the marine environment, it remains to be seen in how far they will result in actual restoration outcomes. For freshwater ecosystems, the strategy sets the voluntary target to restore 25 000 km of rivers to free-flowing state through barrier removal. To help Member States achieve this, the Commission will provide technical guidance to identify sites and mobilise funding. However, broad uptake cannot be guaranteed because of the target’s voluntary nature. For urban ecosystems the strategy commits to stop the loss of green urban ecosystems, and calls on European cities of at least 20 000 inhabitants to develop ambitious Urban Greening Plans by the end of 2021. Again, the level of uptake and effectiveness cannot be guaranteed. The strategy aims to halve the number of Red listed species threatened by invasive alien species, which is to be made possible by implementing the Invasive Alien Species Regulation. The Forest Strategy furthermore announced that definitions, indicators, guidelines, cooperation and a certification scheme will follow, most of which are voluntary. Without a legally binding basis, including provisions for achieving a certain level of forest ecosystem condition, it is questionable that it will lead to significantly more restoration. The Zero Pollution Action Plan, Circular Economy Action