The EU Nature Restoration Law: What It Means for Businesses and Responsible Sourcing

After two years of intense political negotiation, the European Parliament adopted the law in February 2024, and the Council gave its final approval in June 2024. The law entered into force shortly afterwards, becoming the first EU‑wide, legally binding framework to restore degraded ecosystems at scale.

This marks a profound shift: Europe has moved from voluntary conservation to a mandatory restoration agenda. And while the law places obligations primarily on Member States, its implications for businesses, investors, and supply chains are far‑reaching.

What the Nature Restoration Law does

The NRL requires Member States to restore:

• At least 20% of EU land and sea by 2030
• All ecosystems in need of restoration by 2050

This includes wetlands, rivers, forests, grasslands, marine ecosystems, and agricultural landscapes.

Prioritising Natura 2000

Member States must prioritise restoration within the Natura 2000 network, ensuring that Europe’s most sensitive and degraded habitats recover first.

National Restoration Plans

Each Member State must develop a National Restoration Plan detailing:

• Which ecosystems will be restored
• How targets will be met
• How progress will be monitored

These plans will shape land‑use decisions, permitting, and investment landscapes across the EU.

Why this matters for businesses

Although the NRL does not impose direct obligations on companies, it will reshape the operating environment for many sectors. Restoration targets will influence land availability, regulatory expectations, and the social licence to operate.

1. Land‑use constraints will tighten

Restoration targets will affect:

• Where new infrastructure can be built
• How degraded land must be managed
• Which areas become subject to stricter ecological requirements

Sectors such as energy, mining, agriculture, construction, and transport will need to anticipate constraints and adapt early.

2. Permitting will become more stringent

As Member States prioritise restoration, permitting processes for projects affecting sensitive ecosystems will face:

• More rigorous biodiversity assessments
• Higher expectations for mitigation and compensation
• Greater scrutiny from regulators and civil society

This will influence project timelines, costs, and feasibility.

3. Nature‑positive operations will become the norm

The NRL reinforces the EU’s broader shift toward:

• Nature‑positive business models
• Mandatory sustainability reporting (CSRD)
• Due‑diligence obligations (CSDDD)
• TNFD‑aligned risk disclosure

Businesses will need to demonstrate how they contribute to ecosystem recovery.

4. Supply‑chain expectations will rise

Companies sourcing raw materials, agricultural products, or manufactured goods from the EU will face:

• Increased transparency requirements
• Pressure to avoid sourcing from degraded or high‑risk ecosystems
• Expectations to support restoration efforts within supply chains

This is especially relevant for sectors with land‑intensive or nature‑dependent supply chains.

Implications for responsible sourcing and value chains

1. Critical raw materials and mining

The NRL will influence where extraction can occur and under what conditions. Companies will need to:

• Map biodiversity risks across sourcing regions
• Avoid areas targeted for restoration
• Demonstrate strong mitigation and restoration commitments

2. Agriculture and food systems

Restoration targets for soils, pollinators, and agroecosystems will reshape:

• Farming practices
• Supplier requirements
• Land‑management expectations

Businesses will need to work closely with suppliers to support regenerative practices.

3. Renewable energy and infrastructure

Wind, solar, and grid expansion must now align with restoration priorities. This means:

• More careful site selection
• Greater emphasis on biodiversity‑friendly design
• Integration of restoration into project planning

4. Manufacturing and consumer goods

Companies will face growing pressure to:

• Source materials from restored or sustainably managed landscapes
• Demonstrate nature‑positive supply chains
• Report on biodiversity impacts and dependencies

What businesses should do now

To prepare for the impact, companies should:

1. Map biodiversity dependencies and impacts

Identify where operations and supply chains intersect with ecosystems targeted for restoration.

2. Engage suppliers early

Support suppliers in meeting new ecological requirements and transitioning to nature‑positive practices.

3. Integrate nature into risk management

Align internal processes with TNFD, CSRD, and CSDDD expectations.

4. Build restoration into strategy

Companies that invest in ecosystem restoration – directly or through partnerships – will gain competitive advantage, regulatory goodwill, and resilience.

5. Monitor national restoration plans

These plans will determine how the NRL is implemented in each Member State and will shape future operating conditions.

How TDi can help

TDi supports businesses in navigating the complex intersection of biodiversity policy, responsible sourcing, and supply‑chain due diligence. We help organisations:

• Interpret the Nature Restoration Law and anticipate its implications for operations and sourcing
• Map biodiversity risks and dependencies across global value chains
• Align with TNFD, CSRD, and CSDDD through regulation mapping and nature‑related risk assessments
• Engage suppliers to build capacity for nature‑positive practices
• Design and implement restoration‑aligned strategies that strengthen resilience and compliance
• Communicate transparently with investors, regulators, and stakeholders

Get in touch to find out how TDi can help turn supply chain risk strategic opportunity.

• European Commission – Nature Restoration Law (Official Page)
• EUR‑Lex – Regulation (EU) 2024/1991 on Nature Restoration (Full Legal Text)
• EU Biodiversity Strategy for 2030
• IUCN Briefing – EU Nature Restoration Regulation
• WWF – Nature Restoration Law Overview & Advocacy
• Earth.Org – What Is the EU Nature Restoration Law?
• European Environment Agency – State of Nature in the EU
• IPBES Global Assessment