Peatlands in the EU

1.1 Peatlands, fens, bogs, mires, and wetlands: what’s in a name?

European peatland science uses a precise vocabulary that does not always map neatly onto everyday language. Using terms consistently is essential for project documentation, regulatory compliance, and cross-border collaboration. In this section, we clarify key distinctions between terms such as peatlands, fens, bogs, mires, and wetlands to support a shared understanding.

Wetlands

A wetland is an area that is inundated or saturated by water at a frequency and duration sufficient to support a prevalence of vegetation typically adapted for life in saturated soil conditions.^[1] These areas are natural or artificial, permanent or temporary, with water that is static or flowing, fresh, brackish or salt, including areas of marine water the depth of which at low tide does not exceed six metres.

They include a wide variety of inland habitats such as marshes, wet grasslands, peatlands, floodplains, rivers and lakes, coastal areas such as saltmarshes, mangroves, intertidal mudflats and seagrass beds, and coral reefs and other marine areas, as well as human-made wetlands such as dams, reservoirs, rice paddies and wastewater treatment ponds and lagoons.^[2]

Three attributes define a wetland and determine which type it is: its hydrology (degree of inundation and soil saturation), its vegetation (plant communities adapted to anoxic conditions), and its soils (particularly the tendency to accumulate organic material when decomposition is suppressed by waterlogging).

Peat and peatlands

Peatlands are wetland ecosystems where soils are dominated by peat. In peatlands, net primary production exceeds organic matter decomposition as a result of waterlogged conditions, which leads to the accumulation of peat.^[3]

Peatland conservation is widely recognised internationally as an important nature-based strategy for climate change mitigation. However, there is still no universally agreed definition of “

peat Soft, porous or compressed, sedimentary deposit of plant origin with high water content in the natural state (up to about 90%). Countries may define peat according to their national circumstances. “, which creates challenges for estimating and comparing global peat carbon storage.

As this website is built for restoration and conservation purposes, Lourenco et al. (2023)^[4] proposes — in accordance with the recommendations from the IPCC working groups and FAO^[5],[6] — that a peatland can be defined as an area containing peat soil having at least 5% organic carbon through a depth of at least 0.1 m. At the time of identification, the peatland can be with or without vegetation and be either waterlogged or not waterlogged.

A peatland that is actively forming new peat is called a mire.^[1]

Peat composition and types

The botanical origin of the plant material governs peat chemistry and structure, and directly determines which restoration targets are achievable on a given site:

• Sphagnum peat — dominated by Sphagnum mosses; highly absorbent; characteristic of nutrient-poor, acidic conditions, for instance in bogs.
• Sedge peat — dominated by sedges (Carex spp.); often found in fens.
• Reed peat — formed in reedbeds, often in eutrophic swamp systems.
• Forest peat — derived from needles, leaves, and woody debris mixed with other plant material in wet forest environments; composition varies with tree species.

Peat profiles are rarely uniform: successive layers of different peat materials, sometimes interspersed with mineral layers, reflect long-term changes in hydrology, vegetation, and climate.

Classifying mires and peatlands

Mires and peatlands can be classified using a combination of hydrological and chemical criteria. The two most important environmental gradients — wetness (distance between the vegetation surface and the water table) and the trophic-mineral gradient (a compound of pH, base saturation, and nutrient status) — define the position of broad wetland types in ordination space (Figure 3; adapted from Rydin & Jeglum, 2013^[7]).

1.2 Why peatland restoration?

Peatland restoration is the assisted recovery of a degraded, damaged, or destroyed peatland ecosystem. It aims to return peatland structure, species composition and ecological processes to a naturally functioning, self-sustaining state.^[8],[7],[9] Peatland restoration is important for three key reasons: stabilizing the climate, conserving biodiversity, and supporting a wide range of ecosystem services. To prevent further peat decomposition, soil subsidence and CO2 emissions from peatlands, peatland restoration always requires full rewetting by raising the water level to near the surface.^[10]

Climate stabilisation

Peatlands are the most efficient long-term carbon reservoirs of all ecosystems, retaining carbon over extended timescales.^[2] They are also the dominant wetland type globally, comprising around 50–70% of all wetlands. Despite covering a relatively small portion of the Earth’s surface, they hold approximately one-third of global soil carbon and contain about 10% of the world’s freshwater resources.^[1]

Peatlands are being degraded by drainage, fires, atmospheric deposition, and extraction. These activities include use for fuel and horticulture. As a result, peatlands are becoming a growing source of human-caused greenhouse gas emissions.^[11]

When peatlands are degraded they can shift from storing carbon to emitting it, releasing carbon that has accumulated over centuries back into the atmosphere. Restoring peatlands is recognised as a key GHG mitigation measure. Conserving and restoring peatlands is considered critical for meeting international climate targets, such as the Paris Agreement, as emissions from drained peatlands consume a significant portion of the remaining global carbon budget.^[12],[13]

Biodiversity conservation

Peatlands support distinctive and often highly specialised communities of plants, invertebrates, birds, and other organisms. The majority of European peatland habitat types are classified as “vulnerable” or “endangered” on the EUNIS habitat red list. ^[14] Palsas — a unique periglacial landform found in the discontinuous and sporadic permafrost zones of northern Europe — are listed as critically endangered. Restoring peatland hydrology and vegetation directly supports the recovery of these communities and their associated species.

European peatland habitats are protected under both the Habitats Directive and the Birds Directive, and are subject to binding restoration targets under the Nature Restoration Regulation (NRR). Restoration is therefore not only ecologically justified — in many contexts it is a legal obligation.

Ecosystem services

Beyond carbon storage and biodiversity, peatlands provide a range of regulating and cultural services: water purification, flood attenuation, baseflow maintenance, and cultural landscape value. Economic analyses suggest that every euro invested in wetland restoration generates €8–38 in economic value through enhanced ecosystem services (IEEP policy brief; reference to be verified). A Cost–Benefit Analysis (CBA) — assigning monetary values to these benefits relative to restoration costs — can be a useful tool for securing private landowner support.

1.3 Political Landscape of Peatland Protection

Peatlands are central to achieving the targets of several EU sectoral policies. Notable EU legislations include the Common Agricultural Policy (CAP); EU Land use, land use change and forestry (LULUCF) regulation under the Fit for 55 Climate Package; Water Framework Directive (WFD); Habitats and Birds Directives; Nature Restoration Regulation (NRR); and a potential upcoming Carbon Removals and Carbon Farming Certification (CRCF).^[16]

The following chapters will provide an overview of the key legislation relating to the restoration of peatlands and associated funding mechanisms. More detailed information on individual funding instruments can be found in Annex X, along with a decision support system for landowners and practitioners within the European Union interested in rewetting their peatland and accessing financial support for it.

More detailed information on key European policies governing biodiversity is available via the EU Biodiversity Knowledge Centre.

Natura 2000 network: Habitats & Birds Directive

Peatlands are legally protected under the European Union’s Natura 2000 network, which is anchored by the Habitats Directive (92/43/EEC) and the Birds Directive (2009/147/EC). The Habitats Directive specifically designates various peatland types as priority habitats requiring strict conservation measures to prevent degradation, while the Birds Directive safeguards the diverse avian species that rely on these peatlands and wetlands for breeding, feeding, and migration. Together, these legislative frameworks mandate the conservation of wild animal and plant species and natural habitats of Community interest by establishing a coherent network of Natura 2000 sites across the EU.

The mire-related open landscapes are divided into three sub-groups under the Habitats Directive:

Table 1. Raised bogs, mires and fens listed in Annex I of the Habitats Directive.

Seven of these habitat types are Priority Habitats under Annex I of the Habitats Directive (indicated with an asterisk). For all these habitat types, a clear definition is provided, but member states can have different interpretations that even differ regionally.^[17] Habitat type 7140 for instance, has 3 subdivisions in Belgium, related to acidity, nutrient status and mineral composition (7140_oli, 7140_meso, 7140_base). In Germany, federal states use different indicator species for 7140, varying from 7 to 141 plant species.^[18]

The majority of peatlands in Europe are fens.^[19] Individual mire habitats often occur in complexes with other mire habitat types, making strict separation difficult. Temperature, precipitation and oceanity influence the distribution and variability of peatland types in Europe.^[20]

Member States are legally obliged to actively manage and protect Natura 2000 sites, focusing on the preservation and restoration of habitat structure and function. This involves maintaining or achieving a favourable conservation status for each designated habitat, which encompasses not only the essential physical components (structure) and ecological processes (functions), but also a diverse and healthy species composition. Several of these habitats and species occur — partly or exclusively — on peat soils (see Annex 1a and 1b).

Furthermore, Member States must work towards achieving the favourable reference area for each habitat type within the network. A crucial aspect of this management is implementing a landscape-scale approach, acknowledging the interconnectedness of habitats and the importance of connectivity within the wider environment for supporting protected species and overall biodiversity conservation.

Nature Restoration Regulation

On 27 February 2024 the Council of the EU formally adopted the European Nature Restoration Regulation (NRR), setting out legal restoration obligations for terrestrial, coastal, and freshwater ecosystems (Article 4). It covers habitat types listed in Annex I to the NRR, such as wetlands, forests, grasslands, and estuaries. These habitat types correspond to the habitats listed in Annex I of the Habitats Directive, dating back to 1992. Member States shall take the necessary measures to improve the condition of these habitat types (NRR article 4.1).

Phased in over three time spans, the NRR sets binding deadlines and targets for achieving good condition of Annex I habitats:

• At least 30% of the total area of all Annex I habitat types by 2030
• At least 60% by 2040
• At least 90% by 2050

Until 2030, priority should be given to areas located within Natura 2000 sites (NRR article 4.4).^[21]

Additionally, NRR Article 11.4 endorses the restoration of organic soils in agricultural use constituting drained peatlands. Restoration measures shall be put in place on:

• At least 30% of drained peatlands by 2030, of which at least a quarter shall be rewetted
• At least 40% by 2040, of which at least a third shall be rewetted
• At least 50% by 2050, of which at least a third shall be rewetted^[21]

Common Agricultural Policy

The Common Agricultural Policy (CAP) is the central legislation governing financial support to farmers across the EU, integrating climate and environmental protection into its framework.^[22] The CAP consists of two pillars:

• Pillar I focuses on direct payments to farmers, contingent on adherence to a set of basic rules known as conditionality, which includes the ‘Good Agricultural and Environmental Conditions’ (GAECs).
• Pillar II manages payments through the European Agricultural Fund for Rural Development (EAFRD).

Via financial incentives within both pillars of the CAP, drainage-based peatland use is subsidised. In this way, public money supports land use that causes high societal costs and counteracts European and national goals with respect to climate change mitigation, water protection, and biodiversity conservation.^[10]

The CAP strongly influences land use practices and is therefore crucial for meeting climate and nature restoration goals. However, it has so far fallen short — particularly in promoting peatland restoration, despite its high potential to reduce greenhouse gas emissions. The CAP 2023–2027 introduces a stronger “green architecture,” including a key objective on climate mitigation, recognition of peatlands and wetlands as carbon-rich soils, and support for paludiculture as a sustainable use of rewetted peatlands.^[23]

Water Framework Directive

The Water Framework Directive (2000/60/EC), adopted in 2000, established a comprehensive framework for the protection of all water bodies across Europe, aiming to achieve “good status” for rivers, lakes, groundwater and coastal waters by setting ecological and chemical quality standards.

Even though peatlands are not considered separate water bodies under the WFD, they influence surrounding water bodies and associated river basins hydrologically. Restoring degraded peatlands directly supports the WFD by reversing the pollution and hydrological disruption caused by peatland melioration. Through rewetting and ditch blocking, peatland ecosystems regain their ability to filter pollutants, regulate water flow and sequester carbon, helping Member States achieve the directive’s mandatory “good ecological status” targets.^[24]

Carbon Removals and Carbon Farming Regulation

The Carbon Removal and Carbon Farming (CRCF) Regulation is an EU policy initiative aiming to establish a voluntary framework for certifying permanent carbon removals, carbon farming and carbon storage in products. Carbon farming refers to land management practices that enhance carbon sequestration in soils, including forests and agricultural land — and here the connection with peatlands becomes visible.

In order to build an EU-wide robust, comparable, and reliable system for private sector investments into peatland restoration, a standardised EU-level certification shall facilitate sustainable carbon farming solutions without greenwashing. Peatlands are included as a viable pathway for soil emission reductions. The CRCF is intended to be an important step towards accelerating investment in peatland rewetting. The final shape of the CRCF Delegated Act will influence the scale and effectiveness of future investment in peatland rewetting in EU Member States.^[16],[25]