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The Nature Restoration Regulation

The Nature Restoration Regulation is a new EU legislation aimed at improving biodiversity, strengthening ecosystem resilience, and contributing to EU climate goals by restoring and recreating damaged ecosystems in the EU.

The regulation includes goals regarding agricultural and forest land, watercourses, pollinators, and urban greenery. Among other things, 20 percent of the EU's land and marine areas should be restored by 2030, and all damaged ecosystems covered by the regulation should be restored by 2050.

Which nature should be restored? 

Different measures will need to be implemented to improve habitats in poor condition and to re-establish them in areas where they have disappeared. The goal is to achieve so-called favorable reference areas, which are the geographical areas required for a particular habitat or species to achieve and maintain long-term viability. 

Sweden's reporting to the EU regarding reference areas is therefore of great importance for how the regulation affects Swedish forestry. So far, Sweden has stood out compared to how other countries report, meaning that the scope of obligations for restoration is very large. With current reporting based on pre-industrial times, the cost would amount to nearly 100 billion kronor. The government has therefore tasked the Swedish Environmental Protection Agency to start from the natural state that existed in 1995, meaning Sweden will have a similar level of ambition to most other EU countries. 
The regulation does not impose requirements on specific actions but leaves it up to each member state to plan and implement measures to achieve the goals and decide how individual owners can be compensated for what they do or prevented from doing. Sweden has announced that it initially intends to strengthen and expand Natura 2000 areas. 

How does it affect the forest estate 

The forest is affected by the requirements to improve the condition of forest habitats, including re-establishment, and to enhance biodiversity in forest ecosystems generally. 

The measures affect all forests, including those formally protected. Examples of restoration measures can be the planting of native tree species or the reintroduction of lost species, increasing the presence of dead wood, preserving old trees, consideration areas during harvesting, or rewatering drained lands. It can also involve ecological corridors to connect isolated ecosystems with each other or adapted forestry to minimize impact. 

Implementation in Sweden 

The Swedish Environmental Protection Agency has been tasked, together with the Swedish Agency for Marine and Water Management, the Swedish Forest Agency, the Agriculture Board, and the National Board of Housing, Building and Planning, to develop a proposal for a national nature restoration plan based on input from the county administrative boards. They are also to conduct a consequence analysis of the plan proposal. The task includes analyzing and proposing necessary legal changes and conducting a consequence analysis of these proposals. The plan and any legal changes should not entail unnecessary costs or limitations, especially for Swedish companies. The flexibility in the regulation should be fully utilized to protect Swedish companies' competitiveness. The proposals should not go beyond the minimum level in the EU regulation. 

An interim report describing the task's implementation was submitted to the government (Ministry of Climate and Enterprise) on November 29, 2024, and the Swedish Environmental Protection Agency shall report the entire task to the government (Ministry of Climate and Enterprise by February 27, 2026. 

Södra's viewpoints 

Södra sees a need to improve biodiversity, strengthen ecosystems, and contribute to climate goals. However, the risk is that Sweden goes too far in implementing the Nature Restoration Regulation by committing to goals that restrict Swedish forest owners both in terms of cultivation and conservation. One example is the no deterioration requirement, which is not yet clearly defined. We know that many areas require management to maintain and develop natural values. It's important that the no deterioration requirement does not create obstacles in this work or unduly hinder forestry management. Södra's view is also that forest owners' voluntary conservation efforts should be valued and credited more accurately in Swedish reporting. The focus in the Swedish restoration plan should be on areas with the highest natural values. We also believe that the state should take greater responsibility for areas already formally protected. Another aspect is financing. It's unreasonable to place responsibility on forest owners without compensation. 

Timeline 

The law came into force on August 18, 2024. Within two years, member states must establish national restoration plans containing a timeline for implementation with milestones for 2030, 2040, and 2050, along with a description of required resources and expected effects and goal conflicts. 

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