The adoption by the European Parliament of the EU Nature Restoration Law is a positive signal, and an ambition to be strengthened, says Philippe Zaouati, CEO of Mirova
It is urgent to adopt regulations that promote nature protection, restoration, and the sustainable use of natural resources, with clear implementation roadmaps.
Over the past few weeks, numerous scientists, members of civil society, NGOs[1], institutions, and companies, including Mirova, have mobilised to call on Members of the European Parliament to vote in favor of the Nature Restoration Law, an important pillar of the European Green Deal, a set of European laws to combat climate change, a few months after the adoption of the ambitious Global Framework for Biodiversity at COP15[2].
On Wednesday July 12, 2023, a majority of 336 members of the European Parliament approved the bill, while 300 voted against and 13 abstained[3].
Mirova welcomes this positive outcome, which sets binding targets for member states to restore land and marine areas damaged by pollution or intensive exploitation in order to preserve biodiversity.
Parliament’s vote is a positive signal in favor of nature conservation in Europe. The balance between a globally harmonized objective and framework, and the possibility for each Member State to implement them with a degree of flexibility, is a healthy one, but we must remain attentive to the practical applications that could result from this flexibility. The text adopted today has been significantly weakened, and there is still time for the European authorities to raise their ambitions, in line with scientific data.
Each EU country will now be required to take measures to restore at least 20% of degraded terrestrial and marine ecosystems by 2030, rising to 60% by 2040 and 90% by 2050, and to provide financial support to the farmers and fishermen concerned[4].
However, it is important to note that the initial text has been significantly weakened by amendments – for example, the deletion of an article addressing the subject of agricultural ecosystems, a critical lever for carbon sequestration. It should also be noted that the assessment of the law’s impact on food safety will condition its implementation. Finally, the overall success of the Act will also depend on joint ambition on the following elements:
- Revision of the directive on the sustainable use of pesticides
- The proposal for a directive on “Soil health – protecting, managing and restoring the EU’s soils sustainably”, open for consultation until September 2023
- Revision of the REACH regulation to contribute to an environment free of toxic substances
Businesses and financial institutions depend on nature, and have a vital role to play in nature conservation and restoration, and in the transition to a nature-positive economy. By mitigating climate change and improving our resilience to its effects, nature restoration can be a powerful ally for businesses, particularly those directly affected by biodiversity loss and climate risks through supply chain disruption or reduced access to essential ecosystem services.
As a committed asset manager, we play our part in channelling capital to companies and projects that have a positive impact on the protection and restoration of ecosystems, through a clear roadmap and by actively participating in the evolution of financial system practices (See “Mirova For Nature #3). However, the necessary scale and speed can only be achieved if it is supported by ambitious environmental policies and regulations that transform our economic, fiscal and legislative systems.
[1] Non-Governmental Organisations
[2] 15th Conference of the Parties of the Convention on Biological Diversity (CBD)
[3] Source: European Parliament
[4] Source: European Commission
