01 · Overview: the peat transition.
Peat is being phased out of growing media across Europe for one fundamental reason: carbon emissions. Peatlands cover only 3 % of the global land surface but store an estimated twice as much carbon as all the world’s forests combined. When drained for extraction, peatlands shift from carbon sinks to carbon sources, releasing CO&sub2; and nitrous oxide (N&sub2;O) into the atmosphere. The IUCN estimates that degraded peatlands contribute approximately 5 % of global anthropogenic greenhouse gas emissions.[1]
The environmental case against peat extraction is well established. What has changed since 2020 is the regulatory and market response. Five countries now have active peat-reduction measures: the Netherlands (binding covenant), Germany (voluntary BMEL strategy), the United Kingdom (proposed retail ban), Switzerland (voluntary measures) and Ireland (transition of state peat company). These measures are creating structural demand for alternative substrates, with coconut coir, wood fiber and green compost as the three primary replacements.[2][3][4]
The critical window is 2025 to 2030. The Netherlands Peat Covenant requires 35 % renewable substrates by 2025 and 50 % by 2030. Germany targets ending hobby peat by 2026. The UK has proposed a retail peat ban, though timing remains uncertain. Each of these deadlines creates demand for proven, scalable alternatives. Coir is the most widely adopted alternative in professional horticulture due to its agronomic performance, commercial availability and favorable physical properties: high air porosity, near-neutral pH and multi-year substrate durability.[2][3]
02 · Netherlands: the Peat Covenant.
The Covenant on the Environmental Impact of Potting Soil and Substrates (Veenconvenant) was signed in 2022 by the Dutch substrate industry. It is the most advanced peat-reduction framework in Europe: binding on signatories, with progressive milestones through 2050, and backed by 20 member companies of the VPN (Vereniging Potgrond- en Substraatfabrikanten Nederland) that represent more than 95 % of Dutch substrate production.[2]
| Year | Professional renewable share | Consumer renewable share | Additional requirements |
|---|---|---|---|
| 2025 | 35 % | 60 % | Only RPP-certified peat; green compost to 600,000 m³ |
| 2030 | 50 % | 85 % | Full chain certification |
| 2050 | 90 %, CO&sub2;-neutral | 90 %+ | No negative environmental impact |
RPP = Responsibly Produced Peat. Green compost target of 600,000 m³ applies from 2025. Source: Dutch Peat Covenant 2022.[2]
The Netherlands produces approximately 7.5 million m³ of substrates annually and is the global hub for professional horticulture substrate manufacturing. Because Dutch substrate companies supply growers across the EU, the Peat Covenant effectively sets the pace for the entire European professional market. The covenant is binding on signatories: companies that fail to meet milestones face expulsion from the industry association and loss of the RPP certification required for peat sourcing.[2]
The Netherlands currently imports approximately 80,000 tonnes per year of cocopeat as a key alternative raw material. As renewable share targets increase from 35 % (2025) to 50 % (2030), this import volume is expected to grow substantially. Coir is the preferred alternative for professional greenhouse substrates due to its consistency, scalability and proven performance in Dutch high-tech horticulture.[2]
For a full analysis of the Dutch coir market including import volumes, buyer segments, substrate companies and logistics, see Coir Market Netherlands 2026.
03 · Germany: BMEL Peat Reduction Strategy.
Germany’s Federal Ministry of Food and Agriculture (BMEL) published a Peat Reduction Strategy (Torfminderungsstrategie) with targets for both consumer and professional growing media. Unlike the Dutch Peat Covenant, the German strategy is voluntary, which has limited its effectiveness. The Thuenen Institute’s 2026 study concluded that a voluntary approach is unlikely to achieve the pace of transition required and recommended a legislative ban.[3][4]
| Milestone | Target | Status |
|---|---|---|
| Hobby gardening | End peat by 2026 | Voluntary; compliance partial |
| Professional horticulture | Reduce “as far as possible” by 2030 | Voluntary |
| Major retailer mandate | 50 % v/v renewable from 2024-01-01 | In effect |
| EU constraint | EU single-market rules prevent unilateral ban | Active barrier |
The major retailer mandate refers to a commitment by a leading German discount chain. EU single-market law prevents Germany from unilaterally banning peat imports.[3][4]
Thuenen Institute findings (2026)
The Thuenen Institute, Germany’s federal research institute for rural areas, forestry and fisheries, published a comprehensive study in 2026 on peat-free growing media. The key finding: peat-free potting soils are 21 % more expensive at retail than peat-based equivalents. The study found that this premium comes from margins in the supply chain, not from raw material costs. The raw materials for peat-free mixes (coir, wood fiber, compost) are not inherently more expensive than peat at wholesale; the premium is added at the formulation and retail stages.[4]
The Thuenen Institute’s policy recommendation: a legislative EU-wide ban on peat in growing media rather than relying on voluntary commitments. However, EU single-market rules currently prevent individual member states from imposing unilateral import bans on products that are legally sold elsewhere in the EU. This creates a structural barrier: Germany cannot ban peat imports without an EU-wide directive, and no such directive is currently in advanced legislative stages.[4]
Market scale
The German substrate market is valued at approximately EUR 480 to 560 million annually, with a volume of roughly 8 million m³. Germany is the largest consumer gardening market in Europe. One major German substrate producer has reported exceeding 1 million m³ of alternative raw materials (including coir, wood fiber and green compost) in 2024, demonstrating that large-scale peat substitution is technically and commercially feasible.[3][4]
For a full analysis of the German coir market, see Coir Market Germany 2026.
04 · United Kingdom: proposed retail ban.
The UK government has proposed a ban on peat in retail and amateur gardening. England’s peat strategy consultation, launched under the Environment Act 2021, identified peatland protection as a priority for meeting national climate targets. The proposed ban would prohibit the sale of peat-based growing media to consumers while allowing continued professional use under a phased reduction framework.[5]
The horticultural industry responded with the Growing Futures initiative, a voluntary commitment by major retailers and substrate suppliers to reduce peat use ahead of legislation. Several large garden centre chains have already committed to eliminating peat from own-brand growing media products.[5]
However, the timeline for the UK retail peat ban remains uncertain due to political changes. The ban has been delayed multiple times. The current legislative agenda includes peat restrictions but no firm implementation date has been confirmed as of September 2026. Professional exemptions are expected in the initial phase, with a broader phase-out to follow.[5]
Despite regulatory uncertainty, the UK market is shifting. UK imports of coir substrate have been growing as retailers and growers prepare for eventual restrictions. The UK growing media market is the second largest in Europe after Germany, and any retail ban would create significant incremental demand for coir and other alternatives.
05 · Ireland and Finland.
Ireland
Ireland has historically been a significant peat producer, with Bord na Mona, the state peat company, operating as one of the largest peat harvesters in Europe. In 2021, Bord na Mona ceased peat harvesting for energy and began transitioning its bogs to conservation and renewable energy. The horticultural peat sector remains active, but faces increasing regulatory and public pressure.[6]
Ireland’s position is complicated by competing interests. The country has significant peatland areas with both environmental value (carbon storage, biodiversity) and economic value (energy production, horticultural peat, rural employment). The transition from peat to alternatives is proceeding more slowly in Ireland than in the Netherlands or Germany, partly because Ireland is a net peat producer rather than a net peat consumer.[6]
Finland
Finland is the largest peat producer in the EU, but the vast majority of Finnish peat is used for energy rather than horticulture. The Finnish government has set targets for reducing peat energy use, and several Finnish power plants have converted from peat to biomass. Horticultural peat production continues, and Finland exports peat substrate to other EU markets.[6]
Both countries face the same structural tension: peat extraction provides rural employment and economic activity in regions with few alternatives, while environmental policy demands peatland conservation. The pace of transition in Ireland and Finland will likely depend on EU-level policy decisions rather than domestic regulation alone.
06 · Switzerland.
Switzerland is one of the five countries identified by Blok (2026) as having active peat-reduction measures. Swiss measures are currently voluntary. Switzerland is not an EU member state, which means it is not subject to EU single-market rules that constrain member states from imposing unilateral bans. In principle, Switzerland could implement a national peat ban independently.[7]
The Swiss horticultural market is relatively small compared to the Netherlands or Germany, but the country’s environmental policy leadership and consumer willingness to pay for sustainable products make it a potential early mover on peat restrictions. Swiss retailers have been among the first in Europe to offer prominent peat-free growing media product lines.
As an independent actor outside the EU framework, Switzerland’s policy decisions on peat could serve as a test case for national-level regulation in Europe, demonstrating whether a unilateral ban is commercially feasible without the harmonization constraints that apply to EU member states.[7]
07 · EU-level frameworks.
While individual EU member states have pursued national peat-reduction strategies, the EU institutional framework plays a critical role in determining what is possible at the national level and what requires EU-wide action.
EU Soil Strategy for 2030
The EU Soil Strategy, adopted in 2021, recognizes peatlands as critical carbon stores and calls for their protection and restoration. The strategy does not impose a peat ban but establishes the policy principle that peatland degradation must be reversed. This creates the political foundation for future legislative action on peat extraction for horticultural use.[8]
Nature Restoration Law
The EU Nature Restoration Law (Regulation 2024/1991), adopted in 2024, includes provisions for peatland rewetting. Member states are required to develop national restoration plans that include peatland restoration targets. While the law does not directly restrict peat extraction for growing media, it creates an indirect constraint: as more peatland is designated for restoration, the area available for commercial peat extraction shrinks.[9]
Single-market barrier
The most significant EU-level factor is the single-market constraint. EU law guarantees the free movement of goods within the single market. A member state cannot unilaterally ban the import or sale of a product that is legally produced and sold in another member state, unless it can justify the restriction on specific grounds (public health, environmental protection) and the measure is proportionate. This is the reason Germany cannot simply ban peat imports: the ban would need to be either an EU-wide directive or justified under the narrow exceptions to single-market rules.[3][4]
The potential paths forward are:
- EU-wide directive: a harmonized ban or restriction on peat in growing media, applied uniformly across all member states. This is the approach recommended by the Thuenen Institute but would require navigating the EU legislative process, which typically takes several years.
- National approaches within single-market rules: countries can set voluntary targets, create labeling requirements, impose taxes on peat, or use public procurement rules to favor peat-free products without technically banning peat.
- Industry-led covenants: the Dutch model, where the industry commits to binding targets without legislation. This approach is effective when industry concentration is high (as in the Netherlands, where 20 companies control 95 %+ of production) but harder to implement in fragmented markets.
08 · US and other markets.
United States: no federal restrictions
There are no federal peat restrictions in the United States. The USDA regulates growing media imports through APHIS for phytosanitary compliance but does not restrict peat use in agriculture or horticulture. At the state level, Vermont and Maine have considered peat-related environmental legislation, but no binding restrictions are in effect as of September 2026.[10]
The shift away from peat in the US is market-driven rather than regulatory. Several forces are accelerating coir adoption:
- OMRI listing: coconut coir is classified as a nonsynthetic material under USDA NOP rules, making it approved by default for certified organic production. As US organic farming expands, demand for OMRI-listed substrates grows with it.
- Corporate sustainability commitments: large greenhouse operators and major retailers increasingly prefer renewable substrates for ESG reporting and consumer marketing.
- Agronomic performance: professional growers adopt coir for its physical properties (aeration, durability, pH), not only for sustainability reasons.
- Supply diversification: the 2024 coir price surge highlighted the risk of depending on a single sourcing region (South and Southeast Asia). Brazil offers 8 to 9 day transit to the US East Coast, compared to 28 to 45 days from India or Sri Lanka.
Canada
Canada is the world’s largest peat exporter, with significant peat extraction operations in provinces such as New Brunswick, Quebec and Alberta. There are no federal or provincial peat phase-out plans as of September 2026. The Canadian Sphagnum Peat Moss Association promotes peat as a sustainably managed resource, citing bog restoration programs. However, growing environmental scrutiny and the EU peat phase-out could affect Canadian peat export demand over time.[11]
Other markets
Outside Europe and North America, peat restrictions are minimal. Australia, Japan and South Korea use coir extensively in horticulture, but this adoption is driven by agronomic preferences and coir availability from nearby Asian suppliers rather than peat regulation. The global trend is toward greater use of renewable substrates, but the regulatory impetus comes primarily from the EU, with market forces driving adoption elsewhere.
09 · What it means for coir demand.
The peat phase-out creates quantifiable, deadline-driven demand for alternative substrates. The numbers follow directly from the regulatory targets.
Netherlands: quantified substitution
The Netherlands produces 7.5 million m³ of substrates annually. The Peat Covenant requires 50 % renewable raw materials by 2030. If the current peat share is roughly 50 % of the total (with the remainder already composed of coir, wood fiber, compost and other materials), achieving the 2030 target would require replacing an additional volume of peat with alternatives. Taking a conservative estimate, the transition to 50 % renewable by 2030 would require approximately 3.75 million m³ of alternative raw materials annually in the Netherlands alone.[2]
Three main alternatives
Coir is one of three main peat alternatives, alongside wood fiber and green compost. Each has different characteristics:
- Coconut coir: proven performance in professional horticulture, available at commercial scale from India, Sri Lanka, Vietnam, Mexico and Brazil. Best for greenhouse substrates, slabs and precision growing. High compression ratio (5:1) reduces shipping costs.
- Wood fiber: locally produced in Europe from managed forests. Lower shipping footprint but less consistent physical properties. Used primarily in consumer growing media and as a blending component.
- Green compost: locally sourced from municipal green waste. The Dutch Peat Covenant targets 600,000 m³ of green compost by 2025. Used primarily in consumer growing media and landscaping, less suitable for precision professional growing.
Coir’s competitive position
Among the three alternatives, coir holds a structural advantage in the professional segment. Wood fiber and green compost serve the consumer and landscaping markets well, but professional greenhouse growers require substrates with predictable, consistent physical properties: controlled EC, defined particle size distributions, high air porosity and multi-year durability. Coir meets these requirements; wood fiber and compost generally do not, at least not without significant blending and quality control. This means that as the professional renewable share increases (35 % in 2025, 50 % in 2030), the incremental demand falls disproportionately on coir.[2][7]
Price impact
Peat restrictions create a price floor for alternatives. When a buyer is required by covenant or regulation to use a minimum percentage of renewable raw materials, the alternative substrate does not need to compete on price alone. The buyer must purchase the alternative regardless of whether it costs 5 % or 20 % more than peat. This regulatory price floor supports coir pricing and insulates it from the downward pressure that would exist in a purely voluntary, price-competitive market.
For detailed coir pricing data and comparison with peat, see Coir vs Peat: Price, Performance and Sustainability. For current coir price tracking, see Coir Price Tracker.
10 · Frequently asked questions.
When will peat be banned in Europe?
There is no single EU-wide peat ban yet. The Netherlands Peat Covenant targets 50 % renewable substrates by 2030 and 90 % by 2050. Germany’s BMEL strategy targets ending hobby peat by 2026 (voluntary) and reducing professional peat by 2030. The UK has proposed a retail peat ban but the timeline is uncertain. EU single-market rules currently prevent individual member states from unilaterally banning peat imports, so a binding EU-wide directive would be needed for a full ban. The Thuenen Institute has recommended such a directive, but it is not in advanced legislative stages as of September 2026.[2][3][4]
Which countries have peat bans?
As of September 2026, no country has a complete legislative ban on peat in growing media. Five countries have active peat-reduction measures: the Netherlands (binding covenant with progressive milestones), Germany (voluntary BMEL strategy), the United Kingdom (proposed retail ban), Switzerland (voluntary measures) and Ireland (Bord na Mona transition from peat extraction). The Netherlands is furthest advanced, with its binding Peat Covenant signed by 20 companies representing more than 95 % of Dutch substrate production.[2][5][6][7]
What replaces peat in growing media?
The three main peat alternatives are coconut coir (coir pith), wood fiber and green compost. Coir is the most widely used alternative in professional horticulture due to its proven agronomic performance, availability at commercial scale and favorable physical properties: high air porosity (10–30 %), near-neutral pH (5.5–6.8) and multi-year substrate durability. Wood fiber is used primarily in consumer growing media. Green compost serves landscaping and consumer segments. The Dutch Peat Covenant requires RPP-certified peat and targets expanding green compost to 600,000 m³ by 2025.[2][7]
Will coir prices increase as peat is phased out?
Peat phase-out regulations create structural demand growth for coir and other alternatives. As regulatory deadlines approach (Netherlands 50 % by 2030, Germany targets by 2030), demand for coir is expected to increase. However, coir supply is also expanding, particularly from new origins such as Brazil, Mexico and West Africa. The net effect on prices depends on the balance between demand growth from regulation and supply expansion from new production regions. The regulatory price floor means coir does not need to match peat on price alone; buyers must purchase alternatives regardless of premium.[2][3]
Is peat still legal in the US?
Yes. There are no federal peat restrictions in the United States. The USDA regulates growing media imports for phytosanitary compliance but does not restrict peat use. Some states (Vermont, Maine) have considered peat-related environmental legislation but no binding restrictions are in effect. The shift toward coir in the US is driven by market forces: OMRI organic certification, corporate sustainability commitments and agronomic performance rather than regulation.[10]
11 · Sources.
- IUCN Peatland Programme, carbon storage estimates and environmental impact of peat extraction — iucn.org.
- Dutch Peat Covenant (Veenconvenant), 2022. Targets: 35 % renewable by 2025, 50 % by 2030, 90 % by 2050. VPN members, 7.5 M m³ annual production, 80,000 t/yr cocopeat imports — rijksoverheid.nl.
- BMEL (Germany), Peat Reduction Strategy (Torfminderungsstrategie). Hobby peat end target 2026 (voluntary), professional peat reduction by 2030 — bmel.de.
- Thuenen Institute, “Torffreie Erden im Hobbybereich” (peat-free growing media study), 2026. Finding: 21 % retail price premium for peat-free; premium from margins not raw material costs; recommendation: legislative EU ban — thuenen.de.
- UK Government, Environment Act 2021, proposed retail peat ban; Growing Futures industry initiative — gov.uk.
- Ireland: Bord na Mona transition from peat harvesting (2021). Finland: largest EU peat producer, energy use dominant — bordnamona.ie.
- Blok, C. et al., Wageningen University & Research, 2026. Five countries with active peat-reduction measures; coir physical properties and alternative substrate performance data.
- European Commission, EU Soil Strategy for 2030, COM(2021) 699. Peatland protection and restoration framework — ec.europa.eu.
- Regulation (EU) 2024/1991, Nature Restoration Law. Peatland rewetting provisions and member state restoration plans — eur-lex.europa.eu.
- USDA ERS, Organic Agriculture; OMRI (Organic Materials Review Institute), coconut coir as nonsynthetic material — ers.usda.gov; omri.org.
- Canadian Sphagnum Peat Moss Association, peat production and export data — peatmoss.com.
- Greenhouse Grower, “The Growing Media Market: Tariffs, Trends, and What Lies Ahead,” 2026 — greenhousegrower.com.
- Romero, coir substrate specialist, webinar data: expansion rates, durability by grade, processing levels. Referenced for coir physical properties and competitive position.
- Cadena, coir horticulture webinar data: substrate degradation patterns, buffer capacity, moisture retention. Referenced for substrate science context.
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