Restoring Europe’s wetlands to combat climate change and boost economies

This article is brought to you in association with the European Commission’s Horizon, the EU Research and Innovation Magazine.

Wetlands are surprisingly effective at locking away carbon. Marshes, floodplains and peatlands together cover less than a tenth of the Earth’s surface, yet peatlands alone hold around a third of all the carbon stored in soil worldwide.

In waterlogged wetland soils, dead plant material decomposes very slowly, allowing large amounts of carbon to accumulate over thousands of years. When wetlands are drained, oxygen enters the soil, accelerating decomposition and releasing the stored carbon into the atmosphere as greenhouse gases.

Across Europe, large expanses of wetlands have been drained over time for agriculture, forestry, peat extraction and development. In Finland and Latvia, for example, many peatlands were converted for commercial forestry and peat production, while in central Europe peatlands were often reclaimed for farming.

“It’s an enormous land use change,” said Liisa Ukonmaanaho, a senior researcher at Natural Resources Institute Finland (Luke). 

Ukonmaanaho believes restoring wetlands is one of Europe’s biggest climate opportunities. She is working as a project coordinator with an international team of researchers on ALFAwetlands (2022–2026), an EU-funded initiative that maps Europe’s wetlands and explores how restoration can support climate mitigation, biodiversity recovery and more sustainable land use.

“Restoring wetlands is a nature‑based solution that can help reduce greenhouse gas emissions,” she explained.

The aim is to better understand how wetlands function, where restoration is likely to deliver the greatest benefits, and how restored wetlands can support climate mitigation, biodiversity and more sustainable land use.

The research also contributes to EU Missions on Adaptation to Climate Change which recognise healthy wetlands as vital for storing carbon and strengthening Europe’s resilience to climate change.

Mapping wetlands

The ALFAwetlands researchers are looking at wetland ecosystems across 10 European countries, from Spain in the south to Finland in the north. “We cover peatlands, flood plains and coastal wetland,” Ukonmaanaho said.

Their main output so far is a new European Wetland Map. The map identifies where Europe’s wetlands are located and assesses their condition, helping fill an important knowledge gap. 

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Restoring wetlands is a nature-based solution that can help reduce greenhouse gas emissions.Liisa Ukonmaanaho, ALFAwetlands

Even where wetlands were drained decades ago and are no longer visible in the landscape, the map allows governments, landowners and planners to identify former wetland areas – and to understand risks such as flooding, or carbon loss as peat soils dry out and shrink.

The wetland data behind the map has already been downloaded more than 27 000 times and is expected to support national restoration plans, as well as implementation of the EU Nature Restoration Regulation.

The researchers have also reviewed more than 700 wetland restoration projects across Europe, to see which approaches work best under different conditions. The findings will contribute to practical guidance for future peatland restoration while also highlighting key knowledge gaps and the importance of long-term monitoring and stakeholder engagement.

Living Labs are central to this work. They bring together ecological and social science research in real-world conditions, where scientists, landowners, policymakers and local communities collaborate to develop practical restoration methods. The knowledge gained through the Living Labs, supported by remote sensing and modelling, may enable successful restoration approaches to be adapted to similar wetlands across Europe.

Understanding public attitudes is equally important. Surveys carried out in Austria, Estonia, Finland, Germany, Latvia, Spain and Sweden reveal strong support for wetland restoration, although relatively few respondents feel well informed about wetlands or restoration practices. Researchers see this as a potential barrier to broader public engagement.

For many landowners, economic considerations remain a key factor. They are not necessarily opposed to wetland restoration, but they need to ensure a sustainable income. 

“People are more likely to support restoration, if they can continue earning a living from their land or receive fair compensation for any loss of income,” Ukonmaanaho said.

Restoring wetlands and livelihoods

Understanding how to restore wetlands is only half the challenge. If restoration is to happen at the scale Europe needs, it also must make economic sense for the people who own and manage the land.

Spanish researcher Alejandro González, an engineer at IDENER, a research and development SME based in Seville, is working on a separate EU-funded research effort called REWET that is exploring how wetland restoration can become financially sustainable.

The REWET team, involving research and environmental organisations from Austria, Belgium, Estonia, Finland, Germany, Italy, the Netherlands, Portugal and Spain, are working on seven demonstration sites covering more than 2 400 hectares of freshwater wetlands, peatlands and floodplains across Europe. 

The researchers are restoring the degraded landscapes while monitoring greenhouse gas emissions, biodiversity, water quality, soil composition and wider societal benefits. They are also assessing how restored wetlands help reduce the impacts of droughts and floods on surrounding communities.

A major focus is identifying business models that make restoration financially attractive rather than relying solely on public subsidies.

“The main problem the restoration and conservation of wetlands face economically is that they are dependent on public funding,” said González.

Generating wetland income streams

The team is exploring four possible income streams: carbon credits, recreational and cultural activities, payments for ecosystem services and paludiculture – the cultivation of commercially valuable crops on rewetted land.

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The main problem the restoration and conservation of wetlands face economically is that they are dependent on public funding.Alejandro González, REWET

One promising example is the cultivation of sphagnum moss on restored peatlands for use as a sustainable growing medium in horticulture.

“Otherwise, those industries will continue using peat-based substrates that contribute to greenhouse gas emissions,” González explained.

ALFAwetlands’ European Wetlands Map suggests that around 2 million hectares of drained European wetlands could potentially be restored for paludiculture. If markets continue to develop, this could reduce greenhouse gas emissions from these drained soils by around 19 % without requiring additional public funding.

The researchers caution, however, that paludiculture is still an emerging sector and both technical and commercial challenges remain.

Sharing the risks and rewards

Restoring wetlands can deliver long-term environmental benefits, but the upfront costs are often significant. That can make private investors reluctant to support projects unless some of the financial risks are shared.

The REWET team is therefore exploring funding models that combine public and private investment, helping to reduce the risks associated with restoration, while encouraging greater private sector participation. These blended finance approaches could help move wetland restoration beyond individual demonstration projects and make it a more routine part of land management.

González believes this is essential if restoration is to be scaled up. The aim is to create – and showcase – successful examples that show how restoration can generate economic and environmental returns. The hope, González explained, is that once investors see restoration projects turning a genuine profit, they will be more willing to support them in the future. 

But that willingness has to be earned through solid science. Together, the ALFAwetlands and REWET researchers are helping to build the scientific evidence, practical experience and economic models needed to restore wetlands on a much larger scale. 

While one team is identifying where restoration can achieve the greatest environmental gains, the other is showing how those gains might be sustained in practice.

Wetland restoration might be viewed as an environmental cost. But now the researchers hope to show it can also be an investment, paying dividends through lower emissions, cleaner water, richer biodiversity and landscapes that are more resilient to climate change.

Research in this article was funded by the EU’s Horizon Programme. The views of the interviewees don’t necessarily reflect those of the European Commission. If you liked this article, please consider sharing it on social media.

This article was originally published in Horizon, the EU Research and Innovation magazine