The European Commission recently formally adopted a brand-new “Strategic Framework for a Competitive and Sustainable Bioeconomy in the EU,” charting a clear path forward toward building a clean, competitive, and resilient European economy. By harnessing renewable biological resources from both land and sea and providing alternative solutions for critical raw materials, the EU will steadily move toward an economic model that is more circular and decarbonized, while reducing its reliance on fossil fuel imports.

The bioeconomy presents Europe with significant opportunities to enhance resilience, replace fossil-based materials and products, create jobs, and lead the global transition toward a clean economy. With this new strategy, the EU will support activities across various sectors—ranging from agriculture and forestry to fisheries and aquaculture, biomass processing, biomanufacturing, and biotechnology—that harness biological resources to deliver sustainable and practical solutions. The new strategy will fully unlock the immense potential of these resources, research strengths, and industrial foundations, while encouraging innovative initiatives that promote climate, nature, and social progress.

In 2023, the bioeconomy in the European Union was valued at as much as 2.7 trillion euros and created 17.1 million jobs—accounting for roughly 8% of total employment in the EU—thus becoming a major driver of job creation and economic growth in Europe. For every additional direct job created in the bioeconomy sector, three indirect jobs are generated across the EU. The bioeconomy offers a wide array of product examples: bio-based chemicals derived from algae can be used to produce pharmaceuticals, personal care products, and industrial supplies; bio-based plastics are increasingly being adopted in packaging and automotive components; and market demand for bio-based construction materials, textile fibers, and fertilizers continues to grow. Nevertheless, the EU’s bioeconomy still holds enormous untapped potential.

To unlock this potential, the EU Bioeconomy Strategy identifies four key action areas: scaling up innovation and investment, establishing a leading market for bio-based materials and technologies, ensuring the sustainable supply of biomass, and tapping into global cooperation opportunities.

Expand the scale of innovation and investment.

To lead the biotechnology revolution, we must scale up innovation and investment to ensure that scientific research findings do not remain confined to the laboratory stage. The large-scale development of bio-based innovations requires coordinated public-private sector investment, as well as a streamlined and efficient regulatory environment.

The European Commission is committed to establishing a coordinated, unified, simplified, and transparent regulatory framework that both rewards circular and sustainable business models and rigorously upholds EU safety standards. By providing faster, clearer, and simpler approval processes for innovative solutions, we will help businesses—especially small and medium-sized enterprises—to grow and thrive within Europe.

The European Commission will also ensure that both current and future EU funding is directed toward bio-based technologies. To stimulate private investment, the Commission proposes establishing a “Bioeconomy Investment Deployment Group,” which aims to build a pipeline of bankable projects, more efficiently share risks, and leverage private capital participation.

Building a leading market for bio-based materials and technologies.

As bio-based materials transition from the pilot phase to the mainstream, one of the primary objectives of the new bioeconomy strategy is to foster the development of leading markets in areas such as bio-based plastics, bio-based fibers, bio-based chemicals, bio-based construction materials, and bio-based fertilizers—sectors that combine both economic growth potential and environmental benefits. The European Commission will boost market demand for bio-based ingredients in products by setting targets in relevant legislation and through other measures.

To support the leading market, the European Commission will launch a voluntary initiative called the “European Bio-based Alliance” (BEA). This alliance, composed of leading EU companies, commits to collectively procuring bio-based materials worth 10 billion euros by 2030.

Regarding “bio-based plastics,” the European Commission has explicitly stated that, under the framework of the Packaging and Packaging Waste Regulation (PPWR), it will support the recognition and promotion of bio-based plastics and novel materials. This effort will complement recycling content targets, ensure consistency across different application scenarios, and lead to the establishment of standards and targets for bio-based plastics by 2027.

Key Actions and Timetable for Building a Leading Market in Bio-based Materials and Technologies

Ensure the sustainable supply of biomass.

While enhancing our current competitiveness, we must also lay the foundation for building resilience for the future. Europe has largely achieved self-sufficiency in biomass supply, but it needs to continue strengthening this advantage.

Therefore, the EU Bioeconomy Strategy emphasizes that biomass must be sourced in a responsible manner, ensuring that the management of forests, soils, water resources, and ecosystems remains within ecological carrying capacities. Key initiatives include promoting circular economy models and enhancing the value of secondary biomass—such as agricultural residues, by-products, and organic waste. The Commission will launch relevant initiatives to reward farmers and foresters who protect soils, enhance carbon sequestration capacity, and support the sustainable use of biomass.

Explore global cooperation opportunities

With a strong scientific research foundation and robust innovation capabilities, Europe is well-positioned to become a global leader in sustainable bio-based technologies, materials, products, and expertise.

Through this strategy, the EU will support European industries in tapping into global markets: on the one hand, by forging partnerships to reduce supply-chain vulnerabilities; on the other hand, by ensuring that Europe no longer relies on a single region or a single resource. Against the backdrop of today’s complex and ever-changing geopolitical landscape, resource security will further enhance the EU’s competitiveness and resilience.

Original Title: “[Industry News] EU Releases New Version of Bioeconomy Strategy—Bio-based Materials Moving from Pilot Projects to Mainstream”