Commission presents new Bioeconomy Strategy to drive green growth, competitiveness and resilience across Europe

This article is brought to you in association with the European Commission.

Today, the Commission adopted a new Strategic Framework for a Competitive and Sustainable EU Bioeconomy, charting a way forward to build a clean, competitive and resilient European economy. By using renewable biological resources from land and sea and providing alternatives to critical raw materials, the EU will move forward towards a more circular and decarbonised economy and can decrease dependence on fossil imports.

The bioeconomy offers Europe a chance to strengthen its resilience, replace fossil-based materials and products, create jobs and lead the global shift to clean industries. With this new Strategy, the EU will support activities that provide sustainable practical solutions using our biological resources in sectors such as agriculture, forestry, fisheries, aquaculture, biomass processing, biomanufacturing and biotechnologies. It will harness the vast potential of these resources, scientific excellence and industrial base, and encourages innovations that benefit the climate, nature and society.

With a value of up to €2.7 trillion in 2023 and employing 17.1 million people (around 8% of EU jobs), the EU bioeconomy already contributes significantly to job creation and economic growth in Europe. Every job in the bioeconomy creates three indirect jobs in the EU. Examples of products are bio-based chemicals made from algae that are used to produce pharmaceuticals, personal care products and industrial applications. Bio-based plastics are increasingly used in packaging and automotive parts. Also bio-based construction productions, textile fibres and fertilisers are increasingly in demand. However, it still has a huge untapped potential.

The EU Bioeconomy Strategy aims to unlock this potential by scaling up innovation and investments, developing lead markets for bio-based materials and technologies, ensuring a sustainable supply of biomass, and harnessing global opportunities.

Making bio-based innovations a reality on the ground

To lead the bio-tech revolution, innovation and investment need to be scaled up, so that research does not remain in the labs. Scaling up bio-based innovations requires a combination of public and private investments, as well as a streamlined regulatory environment.

The Commission will work to create a coherent and simplified regulatory framework that rewards circular and sustainable business models, while safeguarding EU safety standards. Faster, clearer and simpler approvals for innovative solutions will support companies to develop and grow in Europe, especially for SMEs.

The Commission will also ensure that existing and future EU funding goes into bio-based technologies. And to stimulate private investment, the Commission proposes to convene a Bioeconomy Investment Deployment Group to create a pipeline of bankable projects, share risk more effectively, and crowd in private capital.

Developing lead markets for bio-based materials and technologies

To unlock investment and enable scale-up, the Commission identified innovative markets for bio-based materials and technologies. These include bio-based sectors, such as plastics, fibres, textiles, chemicals, fertilisers, plant protection products, construction materials, biorefineries, advanced fermentation and permanent storage of biogenic carbon, which have high potential for both economic growth and environmental benefits. The Commission will boost demand for bio-based content in products, for example by setting targets in relevant legislation.

The Strategy proposes to set up a Bio-based Europe Alliance, which will be gathering EU companies to collectively purchase bio-based solutions worth €10 billion by 2030.

Securing a sustainable use of biomass

While boosting today’s competitiveness we need to build tomorrow’s resilience. Europe is largely self-sufficient in biomass, but we must make sure it stays that way.

The EU Bioeconomy Strategy therefore stresses the need for sourcing biomass responsibly, ensuring that forests, soils, water, and ecosystems are managed within their ecological limits. Promoting circularity and enhancing the value of secondary biomass – such as agricultural residues, by-products, and organic waste – is key. The Commission will set up initiatives rewarding farmers and foresters who protect soils, enhance carbon sinks and support sustainable biomass use.

Harnessing global opportunities

With its strong research base and innovative industries, Europe is well positioned to become a global leader in sustainable bio-based technologies, materials, products and expertise.

With this Strategy, the EU will support European industry in accessing global markets by securing partnerships that reduce vulnerability and ensuring that Europe is not dependent on a single region or a single resource. In the current fragile geopolitical climate, resource security enhances EU’s competitiveness and resilience.

Background

The bioeconomy covers activities that use biological resources to create added value. It includes products, services, science and technologies benefitting a number of sectors ranging from agriculture and forestry to fisheries and aquaculture. Using biomass processing, biomanufacturing and biotechnologies, the bioeconomy supports food, health, energy, industry and ecosystem services.

The new Strategic Framework for a Competitive and Sustainable EU Bioeconomy builds on the 2012 Bioeconomy Strategy and the reviews carried out in 2018 and 2022, shifting the focus towards industrial deployment, market scale-up, competitiveness and resilience.