Ensuring strategic leadership for the EU Bioeconomy – A call for coordinated growth-oriented approaches

The World Bioeconomy Association (WBA) and the World BioEconomy Forum (WBF) emphasise the urgent need for a coordinated, growth-oriented approach to advancing the bioeconomy within the European Union (EU). The bioeconomy offers sustainable solutions to replace fossil-based products, driving innovations that boost the economy while addressing global climate challenges. Countries such as Brazil, the United States, and China recognise the bioeconomy as a key tool for tackling climate change and enhancing biodiversity. However, recent developments in the EU raise concerns about the potential limitations on the sector's growth, particularly if the bioeconomy is not strategically positioned as a driver of both environmental and economic progress.

Europe, having pioneered much of the bioeconomy’s foundational knowledge, risks losing its competitive edge by not fully capitalising on these innovations. To secure the EU’s leadership role and unlock the bioeconomy’s full potential, this paper presents key recommendations for ensuring strategic leadership, addressing resource challenges, integrating financing frameworks, and embracing biotechnology’s broader potential, all while aligning with international standards such as the G20 High-Level Principles on the Bioeconomy.

1. The case for strategic leadership in the EU bioeconomy

The WBA and the WBF highlight the importance of placing bioeconomy leadership within a directorate-general that can fully unlock its potential in driving sustainable growth for the EU. A balanced approach is essential, one that integrates ecological priorities with the economic opportunities the bioeconomy offers. By fostering industrial innovation and investment, the EU bioeconomy can effectively address climate challenges while contributing to social and economic development, aligning with both global sustainability goals and the EU’s priorities.

Internationally, many leading economies have assigned bioeconomy oversight to strategic entities focused on economic development. For example, in the USA, the White House plays a leading role in shaping the bioeconomy, while China’s efforts are led by the National Development and Reform Commission. India’s approach is guided by the Prime Minister’s Office (PMO), supported by various ministries, and Brazil is shaping its bioeconomy strategy under the Ministry of Development, Industry, Trade, and Services. These nations see the bioeconomy as crucial for sustainable growth and addressing climate solutions. The EU could similarly adopt a strategic approach to maintain global competitiveness.

Rather than limiting the bioeconomy to specific considerations, a leadership framework that encourages strategic investments and innovations across sectors would allow the EU to harness the bioeconomy’s full potential as both a climate solution and a driver of industrial growth. This approach would ensure Europe remains at the forefront of global bioeconomy leadership.

2. Aligning with G20 High-Level Principles on the Bioeconomy

The G20 High-Level Principles on the Bioeconomy, agreed upon on 11 September, 2024, in Rio de Janeiro, outline critical aspects for fostering sustainable bioeconomy development. The principles emphasise the need for inclusiveness, transparency, innovation, and sustainability across the bioeconomy value chain. The EU must incorporate these principles into its Bioeconomy Strategy to ensure alignment with global standards and reinforce its leadership in the field. Key recommendations include: Promoting inclusiveness and multi-stakeholder engagement: Ensuring that bioeconomy policies involve diverse stakeholders, including private sector representatives, NGOs, and civil society. Fostering innovation and technology transfer: Encouraging the development and deployment of cutting-edge bio-based technologies and facilitating technology transfer across regions to boost economic resilience. Enhancing transparency and data sharing: Supporting open data initiatives to improve the monitoring and evaluation of bioeconomy progress, aligned with international best practices.

3. Addressing the perceived biomass gap

A frequently cited concern is the predicted 40–70% biomass gap by 2050 within the EU. However, such estimates are speculative and do not account for underutilised resources like urban waste or emerging technological advancements. Moreover, biomass availability should not only be measured by current stock levels but also by considering how much carbon can be captured via photosynthesis and incorporated into a circular use system.

This system would not only prioritise the cascading use of biomass but also emphasise recycling, nutrient circularity, and the efficient use of organic carbon. By capturing carbon through photosynthesis and ensuring that it remains in a circular economy - while minimising emissions of CO₂ or methane (CH4) - the EU can optimise the use of available biomass. This holistic approach would allow for both carbon sequestration and enhanced resource use.

We recommend:

• Enhanced data accuracy: Improve biomass data collection and analysis to gain a realistic understanding of resource availability, including carbon capture potential through photosynthesis and circularity principles.
• Optimised resource utilisation: Embrace circular economy principles and cascading use of biomass, while also incorporating recycling, nutrient recovery, and the use of innovative bio-based conversion technologies and biomanufacturing. This will enable the retention of carbon and nutrients in the system without excessive emissions of CO₂ or CH₄.

4. Comprehensive leadership in biotechnology and implementing the EU communication on biotech and biomanufacturing

The EU’s biotechnological and biomanufacturing leadership spans a wide range of applications—from health to food, and from industrial uses to energy. However, there is a growing need to ensure that biotechnology and biomanufacturing are perceived holistically, reflecting their full potential across all sectors. By adopting an integrated approach, the EU can maximise the contributions of biotechnology and biomanufacturing to sustainable industrial growth, economic resilience, and innovation.

The EU’s Communication on Biotechnology and Biomanufacturing, issued in March 2024, underscores this critical relationship and has already gained support from the European Council and Parliament. Its principles should be embedded in the EU’s Bioeconomy Strategy to ensure that biotechnology and biomanufacturing are deployed effectively across diverse fields, from health and food to industrial applications.

The WBA and WBF recommend:

• Promoting cross-sectoral biotechnology applications: Support policies that integrate biotechnology’s diverse applications, ensuring the sector contributes to a wide range of solutions, from healthcare to sustainable food systems and industrial innovations.
• Coordinating biotechnology and biomanufacturing strategies: Encourage inter-directorate collaboration to ensure that biotechnology, biomanufacturing, and the bioeconomy are seen as interconnected drivers of growth and sustainability across all sectors.

As the Bioeconomy Strategy evolves, it is critical to build on the framework established by the EU Communication, aligning biotechnology, biomanufacturing, and the bioeconomy with Europe’s broader industrial and sustainability goals. The WBA and WBF urge European institutions to uphold these commitments and integrate the Communication’s principles to foster comprehensive leadership in biotechnology and biomanufacturing.

5. Integrating Financing for a Sustainable Bioeconomy

The report "Financing a Sustainable Global Bioeconomy" highlights the need for a comprehensive financial framework to support the bioeconomy as a sustainable growth engine. The EU should adopt the following actions to ensure adequate financing: Leverage sustainable finance instruments: Utilise green bonds, sustainability-linked loans, and nature credits to attract private investment, while using public finance as a catalyst. Develop blended financing models: Combine public and private funds to support scaling up bio-based innovations and projects, addressing funding gaps for demonstration and commercialisation phases. Align bioeconomy financing with climate and nature goals: Integrate financing strategies with the EU’s Nationally Determined Contributions (NDCs) and biodiversity targets, ensuring investments contribute to a low-carbon, nature-positive economy​.

6. Recommendations for immediate actions

• Realign bioeconomy leadership: Advocate for bioeconomy leadership that can foster growth-oriented opportunities, ensuring the bioeconomy’s potential as a climate solution and an industrial driver is fully realised. Leadership should support a holistic view of the bioeconomy, integrating multiple sectors and promoting both innovation and sustainability.
• Strengthen EU institutional involvement: Actively engage the European Parliament and Council in shaping the Bioeconomy Strategy. Leverage upcoming hearings to highlight the need for coordinated leadership that aligns with the EU’s Communication on Biotech and Biomanufacturing, ensuring comprehensive coverage across health, food, and industrial applications.
• Foster regional and stakeholder collaboration: Encourage collaboration among Member States to present unified stances that support bioeconomy policies. Regional cooperation will amplify the collective voice in advancing bioeconomy initiatives.
• Reassess biomass data accuracy: Invest in enhanced data collection to improve the accuracy of biomass availability assessments, integrating carbon capture potential, circularity principles, and underutilised resources like urban waste.
• Promote financing for the bioeconomy: Implement comprehensive financial frameworks that leverage green bonds, sustainability-linked loans, and nature credits, aligning investments with climate and biodiversity goals, as highlighted in the "Financing a Sustainable Global Bioeconomy" report.

Conclusion

To secure the future of the EU bioeconomy, the WBA and WBF call for a coordinated and growth-oriented leadership structure. The leadership should prioritise sustainable industrial growth while addressing sustainability, resource challenges, and biotechnological advancements. The WBA and the WBF remain committed to collaborating with policymakers, stakeholders, and the EU Member States to achieve these strategic goals.

Thank you for your attention to these critical matters.

On behalf of the World Bioeconomy Association and the World BioEconomy Forum

Jukka Kantola
Chair at the World Bioeconomy Association
Founder and CEO of the World BioEconomy Forum

The World Bioeconomy Association unites the global bioeconomy community to foster sustainable economic growth and advance the transition to a bioeconomy. Our partners and members include a diverse range of stakeholders, public organizations, business leaders, academics, government officials, NGOs, or other civil society representatives, all committed to pursuing progress in the bioeconomy.

The bioeconomy is a multisectoral concept, embraced by three visions of the bioeconomy (bioresource, biotechnology and bioecology) in the Association strategy and communication.

The Association promotes circularity of the bioeconomy, while recognizing that all bioeconomy principles cannot be always circular. In the bioeconomy, resources are produced responsibly and sustainably, generating raw materials, intermediate and end products to replace materials exiting the cycle, thereby complementing the circular economy balance without reliance on a fossil-based economy.

More on: bioeconomyassociation.org

The World Bioeconomy Forum functions as a pivotal global platform, uniting stakeholders for in-depth discussions on the circular bioeconomy. Established in 2018 by Jukka Kantola and co-founders, the Forum has undergone significant evolution, hosting events in various pivotal locations related to the bioeconomy.

Guided by a Four-Pillar Structure encompassing I) The Bioeconomy: People, Planet, Policies, II) Corporate Leaders, III) Bioproducts around us, and IV) Looking to the Future, the Forum takes a comprehensive approach. By engaging diverse bioeconomy stakeholders in meaningful roundtable discussions and an annual conference, it actively contributes to shaping Annual Declarations and influences the progress of the circular bioeconomy.

The Advisory Board, composed of experts from all continents, ensures that the Forum maintains high standards of content and fosters insightful dialogue. With a diverse target audience, including policymakers, bio-related industries, associations, and institutes, the Forum is dedicated to fostering collaboration and sustainability.

More on: wcbef.com