EUROPEAN COMMISSION Brussels, 9.6.2022 COM(2022) 283 final REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS EU Bioeconomy Strategy Progress Report



European Bioeconomy policy: stocktaking and future developments {SWD(2022) 162 final}







EXECUTIVE SUMMARY The European Green Deal sets the EU’s ambition to become climate neutral by 2050, safeguarding people, planet and prosperity. The transition to a modern, resource-efficient, prospering and competitive economy, in which environment, health and wellbeing are priorities, requires deep and widespread action across all sectors of the economy. By 2022, in light of this new policy context, the European Council asked the European Commission to provide a progress report on the implementation of the EU 2018 Bioeconomy Strategy and to assess whether or not the Strategy and/or its Action Plan requires updating. The Bioeconomy Strategy, with its systemic perspective, plays an important role in achieving climate neutrality and environmental, economic, and social sustainability. This Progress Report shows that the actions are on track in achieving the main objectives of the Bioeconomy Strategy: ·An increasing number of national and regional bioeconomy strategies promote cross-sectoral cooperation and sustainability principles, and invest in bioeconomy innovation. ·Progress on bioeconomy deployment has been achieved in Central and Eastern European countries, aided by significant EU funding contributions and the establishment of new fora and networks. ·Mobilisation of private investments and research and innovations in food and other bio-based industries are increasing and show promising developments. Europe has a strong position in the global market for bio-based chemicals and materials. This review has also identified gaps in the current Action Plan that require further action. First, increased focus on how to better manage land and biomass demands to meet environment and economic requirements in a climate neutral Europe. Second, work on more sustainable consumption patterns to ensure environmental integrity. The bioeconomy is now more important than ever to contribute to the green and fair transition in Europe. The EU Bioeconomy Strategy has shown to be successful; yet continued implementation of the Action Plan should put an increased focus on better management of biological resources and sustainable consumption patterns. 1.Introduction Our current fossil-based economy has reached its limits and the transition to a new societal and economic model, based on the sustainable and circular use of resources, has become one of the Union’s core tasks. To tackle this challenge the European Commission adopted a Bioeconomy Strategy in 2012, and updated it in 2018 (see Figure 1). The updated Strategy reaffirmed the five original objectives: (i) ensure food and nutrition security, (ii) manage natural resources sustainably, (iii) reduce dependence on non-renewable, unsustainable resources, (iv) mitigate and adapt to climate change and (v) strengthen European competitiveness and create jobs. These objectives, in line with the targets of the European Green Deal, are now more relevant than ever, following the unprovoked Russian invasion of Ukraine and the need to speed up achieving independence on energy and to strengthen food security. The EU Bioeconomy Strategy enables a green and just transition and covers all three dimensions of sustainability: environment, society and economy. To reach these objectives, the updated Bioeconomy Strategy was accompanied by a targeted Action Plan along three main action areas: (1) strengthen and scale-up the bio-based sectors, unlock investments and markets; (2) deploy local bioeconomies rapidly across Europe; and (3) understand the ecological boundaries of the bioeconomy. The Council of the European Union recognised the importance of the bioeconomy as a major component for the implementation of the European Green Deal in a Europe of regional diversity. It has asked the European Commission to provide a progress report on the implementation of the Bioeconomy Strategy by 2022, marking the 10th anniversary of the first EU Bioeconomy Strategy. This document aims to reply to the Council request.

Figure 1: Development of the EU Bioeconomy Strategy and structure of this report.

2.What is bioeconomy? Key messages: ·Bioeconomy is a natural enabler and result of the European Green Deal transformation ·Bioeconomy governance is crucial to maximise synergies and resolve trade-offs ·Bioeconomy policies should be built on all sustainability dimensions: (1) management of land and biological resources within ecologic boundaries; (2) sustainable value chains and consumption; and (3) social fairness and just transition. The concepts of bioeconomy and of bioeconomy policy have evolved from the first EU Bioeconomy Strategy in 2012, to the updated 2018 Bioeconomy Strategy (see Figure 1). The bioeconomy covers all sectors and systems that rely on biological resources (animals, plants, micro-organisms and derived biomass, organic waste), their functions and principles. The EU Bioeconomy Strategy can help to identify, assess and address trade-offs between policy targets and competing uses of land, sea and biomass in order to optimise the use of material resources and services, including ecosystem services. This allows to identify win-win solutions that generate economic gains, preserve the environment, and increase resilience and capacity for recovery. Bioeconomy governance is crucial to maximise synergetic effects of sectoral policies , create a level playing field and to frame coherent sustainability criteria across policy areas. Fostering interministerial cooperation, policy coherence and vertical coordination at local, national, EU and international levels allows the bioeconomy to fulfil its potential. Bioeconomy policies help to build a bioeconomy based on all sustainability dimensions. They enable all people to enjoy a ‘bio-based’ lifestyle, providing them with bio-based material (food, fibre, bio-based materials, energy) and non-material (clean air and water, biodiversity, climate mitigation and adaptation, recreation) products and services, thus contributing to the objectives of the New European Bauhaus and its values of sustainability, inclusion and quality of experience. 2.1.Environmental sustainability: Management of land and biological resources within ecological boundaries By optimising the use of biological resources from land and sea, the bioeconomy maximises co-benefits, such as production of biomass, mitigating climate change and enhancing biodiversity, while safeguarding and benefiting from other ecosystem services. This implies dedicating land and aquatic area to preserving and restoring ecosystems, as well as achieving the targets set out in, for example, the EU Biodiversity and Sustainable Blue Economy strategies, the EU’s and national Adaptation Plans, and regulations on Land Use, Land Use Change and Forestry (LULUCF) and deforestation-free products. Nature based solutions and sustainable management of terrestrial and aquatic ecosystems help regenerate natural ecosystems and respect maximum sustainable yields, safeguard multi-functionality of forests, avoid harmful pollution, and improve ecosystem resilience. 2.2.Economic sustainability: Sustainable value chains and consumption Use of biomass and other biological resources obtained from land and sea must fulfil and respect human needs and rights, such as the right to adequate and nutritious food and the right for land managers and primary producers to fair living and working conditions . The bioeconomy contributes to most of the Sustainable Development Goals (SDGs), among others SDG 2 (Zero Hunger), 12 (Sustainable Consumption and Production), and 13 (Climate Action). Sustainable consumption patterns ensure wellbeing for all within planetary boundaries. Bioeconomy policies boost sustainable innovation and create solutions for sustainable food and bio-based products, bio-based and bio-derived chemicals, advanced biofuels and the bioenergy of the future. Several Horizon 2020, Bio-Based Industries Joint Undertaking and regional projects showcase industrial modernization and sustainable value chains (SWD Chapter 7). Resource and energy efficiency are achieved through principles such as the circular economy, the cascading use, the waste hierarchy, or the Avoid-Shift-Improve approach. 2.3.Societal sustainability: Social fairness and just transition Bioeconomy policies enable a green and socially fair transition by developing sustainable business models based on the principles of due diligence and by promoting sustainable trade and social fairness in Europe and beyond. This will reduce disparities, and generate new green jobs in emerging circular, bio-based and food industries and services, adding value to the regional economies. Examples such as the Rhenish coal mining area in Germany (BioeconomyREVIER) or the Bulgarian Stara Zagora region (BE-RURAL) show that the bioeconomy contributes to rural and coastal development and helps a fair and just transition. 3.General trends in the Development of the bioeconomy in Europe Key messages: ·National bioeconomy strategies are becoming more numerous throughout Europe ·The main use of biomass is for food and feed; woody biomass is increasingly used

·The cascading principle must apply to the use of all biomass ·Important innovations in food and other bio-based industries show the potential of the bioeconomy ·Public involvement in R&I has shown good results so far and should be strengthened In this section, latest available data from the European Commission’s Knowledge Centre for Bioeconomy are used to outline the situation of the bioeconomy in Europe. Section 3.1 provides an overview of currently existing national and regional bioeconomy strategies in Europe, while Section 3.2 shows the development of biomass supply and use until 2017. Section 3.3 provides an overview of economic figures of the bioeconomy and outlines the current role of bio-based research and innovation. 3.1.Development of bioeconomy strategies at national and regional level Successful deployment of bioeconomies depends on local environmental, social and economic potentials and challenges. The 2018 Bioeconomy Strategy Action Plan included specific actions to encourage the adoption, update and coherence of national and regional bioeconomy strategies throughout Europe. Since its adoption, substantial progress has been achieved. There are currently ten EU Member States with dedicated bioeconomy strategies and seven EU Member States that are in the process of developing their respective strategies (Fig. 1, details see SWD Chapter 2.1). Hence, since 2018 three more Member States have developed a national strategy, while five more Member States started the process of developing one. Many EU Member States are also involved in three macro-regional level initiatives: BIOEAST bringing together eleven Member States from Central and Eastern Europe, the Nordic Bioeconomy, or the Bioeconomy in the Baltic Sea Region initiative. The sectorial scope of those strategies generally reflects the scope of the European Strategy. Their actions focus on measures to: opromote the implementation of principles for cascading use of biomass, circularity, and resource efficiency, investments in bioeconomy research, innovation and market development; ointegrate bioeconomy concepts or priorities within existing regulatory frameworks; ofacilitate intra-governmental and stakeholder collaboration; opromote public procurement of bio-based products, national labels and standards, and actions that enhance knowledge and promote bioeconomy education or training (SWD Table 1). Furthermore, 28 EU regions have in place their own dedicated bioeconomy strategies and another region is in the process of developing one; 69 other EU regions are in the process or have already adopted strategies in which the bioeconomy is one of the key elements and 96 other EU regions have strategies with a minimum bioeconomy content (SWD Figure 1). Sector-specific regional strategies that guide the management of specific biological resources and/or bioeconomy sectors as well as broader, overarching and cross-cutting strategies (on e.g. circular economy, research and innovation, etc.) also exist and support the deployment of regional bioeconomies. 3.2.Supply, transformation and use of biomass The EU-27 sources roughly 1 billion tonnes dry matter of biomass per year. This biomass is mainly from the agriculture and forestry sectors, while fisheries and aquaculture supply less than 1 % of biomass dry matter. The biomass used for food purposes amounts to about half of all biomass used in the EU-27 (see Figure 3 and SWD Figure 2). Approximately 80 % of the biomass produced for food in the EU-27 are destined for animal-based food, while 20 % is plant-based food. The increase of the use of biomass in the period 2009-2017 was in the order of 1 % for food and 10 % for non-food purposes over the past two four-year periods of available data (2010-2013 and 2014-2017). Primary and secondary woody biomass use has increased by 25 % and 29 % respectively in the past two decades. Energy-use of woody biomass has increased in the EU by about 12 % over the past two four-year periods of available data (2010-2013 and 2014-2017).

At least half of all woody biomass used in the EU for energy (49 %), and about 19 % of all woody biomass entering the industrial process for materials, is from secondary sources and post consumer wood . Although the use of the secondary woody biomass emphasises the cascading use of biomass in the forest-based industries, it could be improved by reinforcing the implementation of the cascading principle and more emphasis on long-lived materials and products, for example in buildings and furniture. Such materials and products can enable the transformation of the built environment into a carbon sink rather than a source of emissions, helping to protect and expand the biosphere, stabilise the climate, and ensure human health and well-being, in line with the New European Bauhaus objectives. Moreover, in order to improve the circularity of the wood-based industries, focus should be put on the recovery and reuse of the post-consumer wood (currently 38 Mm3 SWE). In view of increasing biomass demands and a limited sustainable biomass supply, a gap in biomass availability is expected (see Chapter 4). 3.3.Economy, jobs and R&I in food and other bio-based industries The biomass production and biomass conversion into food, beverage, manufactured bio-based products and liquid biofuels and bioelectricity represent 8.3 % of the European labour force and 4.7 % of its GDP in 2019 (i.e. 17.42 million workers and EUR 657 billion value added in the EU's post-Brexit sectorial composition) (SWD Figure 3). The bio-based share of about 3 % in EU’s domestic chemical market shows an important growth potential (SWD Figure 4). Europe’s global market share for bio-based chemicals and materials of about 31 % is twice the one of the fossil-based sector (16 %). The role of bioeconomy sectors in generating economic wealth has improved in the past decade (SWD Figure 5) with gains in labour productivity (value added per worker) observed in all countries (SWD Figure 6). Highest labour productivity was seen in the production of bioelectricity, the manufacturing of bio-based chemicals, pharmaceuticals, plastics and paper. The highest substitution of fossil-based by bio-based chemical products took place in bio-based solvents, bio-based polymers, bio-based packaging, biofuels and agrochemicals, with comparable production costs to fossil-based products (SWD Table 2). Substitution of fossil-based inputs for chemical platform products and polymers for plastics is currently at low shares with high future potential. Biorefineries at scale could play an important role (see Section 5). Direct and indirect impacts on local economies of circular solutions underpinned by biotechnology have been demonstrated by a municipal waste-based nutrient valorisation strategy for agricultural use in Italy, showing that a total added value of EUR 8.5 million and 85 jobs can be generated for every 100,000 tons of sewage sludge turned into fertiliser. While the restructuring of European agriculture dominates the overall size of the work force, growth in the food and other bio-based industries in the EU27 was higher than the primary sectors. The manufacturing of food, beverage, tobacco, bio-based textiles, wood products and furniture, paper, bio-based chemicals, bio-based pharmaceuticals, bio-based plastics and bioelectricity provides 7.92 million jobs with a value added of EUR 433 billion. The food, beverage and tobacco sector has with 55 % the largest share of value added (EUR 237 billion). An increasing number of novel food applications. Research and development has progressed quickly in the private sector and regressed in the public sector, indicating that the mobilisation of private stakeholders in research, demonstration and deployment of bio-based solutions has been fruitful. However, public involvement in R&D should further strengthen and expand the bio-based sectors, as was successfully done in the Bio-based Industries Joint Undertaking (and its successor Circular Biobased Europe Joint Undertaking, see Section 5.1, and SWD 1.1 Box 1). Service activities, such as scientific research and development, digitalisation, logistics, etc., are an important element in a bioeconomy and could more than double the employment and “bioeconomy size”. Studies point to EUR 400 to 1000 billion of value-added generated by bioeconomy-related services in the EU, growing between 2005 and 2015 on average faster than the primary production bioeconomy sectors . However, current statistics are not well adapted to provide reliable information. Also, the scope of service sectors (SWD Figure 7) considered in the bioeconomy varies considerably between Member States.

4.EU Bioeconomy Strategy objectives in the context of the European Green Deal Key messages: ·Europe is generally moving towards the objectives of the EU Bioeconomy Strategy but environmental challenges persist ·There is a need for policy coordination as a consequence of multiple pressures on land from material demand, notably in sensitive labour markets. ·There is a need to transform and re-skill the work force in all parts of Europe for a just transition. ·The continued implementation of the EU Bioeconomy Strategy and Action Plan should focus on the challenges identified. This chapter aims to analyse whether Europe is moving towards the five objectives of the EU Bioeconomy Strategy. In a second step, these objectives will be matched with relevant initiatives and policies under the European Green Deal. The EU Bioeconomy Monitoring System assesses the progress towards a sustainable and circular bioeconomy based on the aspirational principles that guide the EU Bioeconomy covering all three sustainability dimensions. In this framework, the five objectives of the EU Bioeconomy Strategy are broken down into more detailed statements that describe the pathways towards them. Europe’s trajectory towards a desired bioeconomy is assessed using specific indicators to measure the progress along these pathways. The trends do not yet reflect the impact of the 2018 EU Bioeconomy Strategy and are confounded by many other factors. The trends based on data for the year 2012-2021 show that Europe is generally moving towards the objectives described in the Bioeconomy Strategy (see Box 1). However, the trends also show some negative developments. Despite substantial benefits delivered by EU environment and climate policies over recent decades, Europe is facing persistent environmental challenges. Assessments reveal that terrestrial and marine ecosystems in Europe are under strain mainly due to direct or indirect anthropogenic stressors, such as pollution, persistent human interventions, and climate change (SWD Figure 8). Table 1 shows the relationship between the European Green Deal initiatives and the five objectives of the Bioeconomy Strategy. Each initiative puts a focus on at least one objective of the Bioeconomy Strategy (dark green) and supports others (medium green). The assessment does not prejudge the actual impact the initiatives will have. In some cases, links with the objective of the Bioeconomy Strategy are only implicit and the initiative does not address or support it directly (pale green), as a consequence of economic or behavioural feedback effects. In such cases, specific attention is required (SWD Chapter 4 for additional details on the assessment).

Table 1 shows that various trade-offs and challenges need to be addressed: (a) increased pressure on land for mitigation (carbon sequestration) and adaptation, nature protection (e.g. biodiversity) and supply of biomass, (b) increased demands for materials and bioenergy, and (c) a mismatch between the existing and required work force (e.g. skills) calling for transforming and re-skilling of Europe’s work force. For example, studies project a biomass gap by 2050 of 40-70 % between sustainable biomass supply and biomass demands for materials, and energy. The current crisis following the unprovoked Russian invasion of Ukraine clearly shows that Europe requires to increase its independence on energy and to strengthen food security, without leaving the path towards a sustainable, resilient, and fair economy as outlined by the European Green Deal. Holistic and environmentally sustainable production models are needed aiming at maximising synergies and minimising trade-offs to avoid potential additional pressure on natural resources and to develop smart and sustainable solutions. The continued implementation of the EU Bioeconomy Strategy and Action Plan and further actions should focus on these challenges. Ensuring Food and Nutrition Security. The EU is already a highly food secure

region and is showing an overall tendency

towards increasing food accessibility and utilisation. There are variations from year to year however, due to extreme weather events, and the variability in prices and the economic conditions of families. There are discrepancies in food and nutrition security between countries within the EU Mitigating and adapting to

climate change. Climate change adaptation is progressing

at a stronger pace than mitigation. Mitigation shows a negative trend due to the decline of the forest sink, partly linked to an increase in harvest, which also includes unplanned harvesting due to natural disturbances and pests. Strengthening European

competitiveness and creating jobs. Strong positive trends are seen in the value

of raw and processed biomass, value added in bioeconomy sectors and contribution of bioeconomy to economic development. Moderate trends are seen in the overall employment in bioeconomy sectors.

Reducing dependence on non-renewable unsustainable resources, whether

sourced domestically or from abroad. The EU is showing strong progress in biowaste prevention, re-use/recycling, and recovery, energy efficiency, and consumption and demand for bio-based products. In particular, the EU is improving in overall waste recovery. There is a strong negative trend in material footprint and food loss and waste minimisation for the period 2012-2017. Managing Natural Resources

Sustainably. The increased land and marine areas designated as “Natura 2000 sites” have pushed the indicator group related to conservation areas to show very positive trends. A weak positive trend is reported for structural and functional ecosystem attributes. Pressures from primary production systems vary. Trends are improving for fisheries, neutral for agriculture and negative for forestry. Environmental quality and species diversity are showing stable trends. Although trends are overall positive for the period 2012-2017, ecosystem condition are still overall quite poor.

Ensuring Food and Nutrition Security Managing Natural Resources Sustainably Reducing dependence on non-renewable unsustainable resources, whether sourced domestically or from abroad Mitigating and adapting to climate change Strengthening European competitiveness and creating jobs Circular Economy [1] Industry Strategy [2] Biodiversity Strategy [3] Farm to Fork Strategy [4] Renovation Wave [5] European Climate Law [6] Chemicals Strategy for Sustainability [7] Adaptation Strategy [8] Sustainable Financing [9] Zero Pollution Action Plan [10] LULUCF [11] Renewable Energy [12] Forest Strategy [13] Sustainable Carbon Cycles [14] [1] COM(2020)98. A new Circular Economy Action Plan. For a cleaner and more competitive Europe. [2] COM(2020)102. A New Industrial Strategy for Europe. And COM(2021)350 final. Updating the 2020 New Industrial Strategy: Building a stronger Single Market for Europe’s recovery. [3] COM(2020)380. EU Biodiversity Strategy for 2030. Bringing nature back into our lives. Targets include protection 30 % of the land and sea area, strictly protection of 10 % of land and sea area; reverse decline of pollinators; 50 % reduction in the number of Red List species threatened by invasive alien species; significantly reduce by-catch of species; three billion new trees are planted in the EU; aligned to targets of the farm to fork strategy. [4] COM(2020)381. A Farm to Fork Strategy for a fair, healthy and environmentally-friendly food system. Targets by 2030 include 50 % reduction in the use and risk of chemical pesticides and a 50 % reduction in the use of the more hazardous pesticides, hazardous chemicals, nutrient losses, and sales of antimicrobials in farming; 25 % of agricultural area under organic farming. [5] COM(2020)662. A Renovation Wave for Europe - greening our buildings, creating jobs, improving lives. See also COM(2021)802 proposal for a directive on the energy performance of buildings (recast). [6] EU(2021)1119. 'European Climate Law’. Targets include by 2030 reduction of GHG emissions by 55 %; achieving climate neutrality by 2050. See also Carbon Border Adjustment Mechanism COM(2021)564 final. [7] COM(2020)667. Chemicals Strategy for Sustainability - Towards a Toxic-Free Environment. [8] COM(2021)82. Forging a climate-resilient Europe - the new EU Strategy on Adaptation to Climate Change. [9] COM(2021)390. Strategy for Financing the Transition to a Sustainable Economy and EU(2020) 852. Taxonomy Regulation. [10] COM(2021)400. Pathway to a Healthy Planet for All - EU Action Plan: 'Towards Zero Pollution for Air, Water and Soil'. Targets by 2030 include reduce number of premature deaths by air pollution by 55 % and share of people chronically disturbed by transport noise by 30 %; sign. waste generation, residual municipal waste and plastic litter at sea (by 50 %), microplastics released into the environment by 30 %; nutrient losses and chemical pesticides’ use by 50 %; EU ecosystems where air pollution threatens biodiversity by 25 %. [11] COM(2021)554. Proposal for amendment of the LULUCF regulation. Target of -310 Mt CO2eq/yr net greenhouse gas removals in the EU-27 LULUCF sector, with individual targets by Member State. [12] COM(2021)557. Amendment of EU(2018) 2001. On the promotion of the use of energy from renewable sources. Targets of amendment include increased to 40 % share renewable energy, increased sustainability criteria incl. cascading principle. [13] COM(2021)572. New EU Forest Strategy for 2030. [14] COM(2021)800. Communication on Sustainable Carbon Cycles; including a target of 20 % of the carbon used in the chemical and plastic products from sustainable non-fossil sources by 2030 and announcing an action on Integrated Land Use Assessments. 5.Progress of bioeconomy activities under the EU Bioeconomy Strategy Action Plan Key messages: ·Overall implementation of the EU Bioeconomy Action Plan is well on track and has already contributed to the objectives of the European Green Deal. ·Strongest progress has been made in developing bio-based solutions through R&I and increasing public and private investments (action area 1). ·Improved cooperation with Member States and demonstration projects have laid the basis for regional and national bioeconomy deployments, with a focus on less developed countries (action area 2). ·Understanding of ecological limits of the bioeconomy has improved (action area 3). However, gaps remain on how to better manage biosphere use to meet environmental and economic requirements in a climate neutral Europe, and how to promote more sustainable consumption patterns to guarantee environmental integrity. This chapter summarises the progress made on the 14 actions under three action areas of the 2018 Bioeconomy Strategy and Action Plan. Most of the activities have medium and long-term processes and will deliver their final results in the future. More details on the actions can be found in the SWD Chapter 5. 5.1.Strengthen and scale up the bio-based sectors, unlock investments and markets The first action area aims to strengthen and scale-up the bio-based sectors and unlock investments and markets. The actions also promote research and innovation along value chains and improve coordination in innovation activities. Promising innovations in the bio-based sectors include analytical techniques and bioprospecting, design and engineering of biomolecules, and solutions for more sustainable biomass exploitation. The Bio-based Industries Joint Undertaking (BBI JU, 2014-2021) will have attracted private investment of EUR 2.73 billion by 2024 (end of last projects), matched with EUR 835 million support by the EU (details SWD Box 1). The new Circular Bio-based Europe (CBE) Partnership (2021-2031) receives EUR 1 billion EU contribution to further strengthen and scale up the EU bio-based sectors in all stages of the innovation cycle, to be coupled with at least the equal contribution by the private partner, the Bio-based Industry Consortium. The Bioeconomy Strategy Accelerator Toolkit (BSAT) integrates bioeconomy tools and support material developed within Horizon 2020 project POWER4BIO, e.g. the catalogue of bio-based solutions. Investment readiness of the EU regions is supported by the Commission through a Self-Assessment Tool. The EU Bioeconomy Strategy intended to facilitate the development of new sustainable biorefineries in Europe at scale, to provide emerging applications substituting fossil-based products (SWD Infographic 1). As also confirmed by an outlook for biorefineries for 2030 in Europe, they could play a key role in transforming industrial facilities. More than 300 chemical and material-driven biorefineries are operational in the EU (e.g. see Figure 4, BBI JU flagships and their value chains). For example, there are 139 woody biomass-based biorefineries in Europe, with another 28 planned to double their turnover by 2030. The policies and regulations, especially those taken since 2018, have been pivotal for investment decisions of private companies on biorefineries. However, market access remains challenging due to the lack of a comprehensive regulatory policy approach and the large gap between the current costs of bio-based products and the willingness of consumers to pay. The Blue Bioeconomy Forum identified several solutions that have been implemented in the coastal area. The Forum’s recommendations have been one of the starting points for the forthcoming EU Algae Initiative, which the Commission intends to adopt in Q4/2022. The algae or shellfish aquaculture can serve as bioremediation tools by removing nutrients, carbon and pollutants from marine waters. The BlueInvest platform and the European Maritime, Fisheries and Aquaculture Fund (EMFAF) support investment in the broader blue economy including on algae. An increasing number of projects under Horizon 2020 and Horizon Europe, including the mission “Restore our Ocean and waters by 2030” support plastics free seas and oceans and algae related projects. To unlock investments, the new European Circular Bioeconomy Fund is a first venture fund exclusively focused on the bioeconomy and the circular bioeconomy in Europe, providing funding from Horizon 2020 and the European Investment Bank. The fund targets investments of EUR 250 million, with a further EUR 206 million in capital raised by the end 2021. Assessments show uneven distribution of bioeconomy activities among different EU macro-regions and Member States (e. g. distribution of chemical and material biorefineries, investment in the European Circular Bioeconomy Fund and insufficient innovation intensity in bio-based sectors), correlating at least to some extent with the innovation performance measured by the European Innovation Scoreboard.

5.2.Deploy local bioeconomies rapidly across the whole of Europe The European Commission has set up several work streams with Member States to deploy local bioeconomies rapidly across Europe. The European Bioeconomy Policy Forum facilitates exchange of knowledge and best practices between Member States for developing and implementing national and regional bioeconomy policies. Collaboration between Member States was facilitated via the Bioeconomy Policy Support Facility as a Mutual Learning Experience, identifying ten key policy messages to guide national bioeconomy strategy and/or action plan development. A group of experts conducted the BIOEAST Foresight exercise which is the first of its kind in the region and raised awareness of the importance of investing in specific research and innovation and in national bioeconomy development programmes. Several pilot actions to support coastal, rural and urban bioeconomy development demonstrate the bioeconomy’s potential on the ground and have been supported through various EU instruments, such as the Common Agricultural Policy (CAP), the European Regional Development Fund (ERDF), the European Maritime and Fisheries Fund (EMFF), LIFE, the Innovation Fund, and Horizon 2020 and Horizon Europe with their partnerships (the BBI-JU and CBE) and missions (e.g. soil and ocean missions). To improve synergies and complementarities between EU initiatives, regional policies and their instruments, further investments in infrastructure are needed to tap the biomass potential. A project on a strategic deployment agenda will address the fragmentation in the research and innovation landscapes, and strengthen interactions and complementarities between initiatives, instruments and policies. The new CAP includes the bioeconomy explicitly under one of its specific objectives. The new CAP allows Member States to set out interventions adapted to their local realities to promote the development of the Bioeconomy in rural areas, providing the possibility to move from individual projects to a more systemic approach and supporting primary producers in their efforts to innovate and drive the bioeconomy. EU structural funds remain significant financial contributors to bioeconomy deployment, including the European Maritime, Fisheries and Aquaculture Fund that has committed EUR 36 million to the blue bioeconomy. Horizon 2020 project HOOP received EUR 7.9 million as a EU contribution to support a pilot group of European cities to attract EUR 51 million of investments for the implementation of urban circular bio-based economy strategies, creating additional jobs and recycling/reducing waste. In 2021 the European Commission established the Circular Cities and Regions Initiative that will provide further support to circular bio-based economy projects at local and regional scale through demonstrations and project development/technical assistance. Mainstreaming of bioeconomy relies on the next generation. Young people are important knowledge multipliers and ambassadors. Successful deployment also demands a workforce that is well-equipped for the shift towards better sustainability and circularity.As activity under the EU Bioeconomy Strategy and in line with SGD 3, the Commission launched a study to explore the development of bioeconomy educational and training content. 5.3.Understand the ecological boundaries of the bioeconomy In the third action area the European Commission’s Knowledge Centre for Bioeconomy builds the knowledge base on key issues, for example on sustainable biomass supply and demand and guidance on how to manage healthy and resilient ecosystems in the bioeconomy, and the development of a Europe-wide monitoring system to assess the environmental, social and economic sustainability of the EU Bioeconomy (see Chapter 4). The forest information system for Europe (FISE) provides access to forest related data and acts as a motor of new harmonised forest information. The mapping and assessment of ecosystem services (MAES) provides information on the condition of terrestrial, freshwater and marine ecosystems as data foundation for future assessments and policy developments. Major initiatives are being adopted to set up living labs accelerating the transition to agroecology and to increase the understanding of microbial biodiversity and to develop microbiome-based solutions. Living labs are also developed in the context of the EU mission “A soil deal for Europe” to re-establish soil fertility. To further deepen our understanding of microbiome solutions and applications, the Commission collaborates with international partners via a dedicated working group under the EU-led International Bioeconomy Forum. An EU-wide pollinator scheme is being developed. The new European co-funded biodiversity partnership Biodiversa+ includes as one of its objectives support for biodiversity monitoring, including an EU Pollinator Monitoring Scheme (EUPOMS). Overall, the activities under the third action area have contributed to a better understanding of the ecological limits of the bioeconomy. Yet, more work needs to be done in order to move from a better understanding towards a better implementation of the bioeconomy within the planetary boundaries. Knowledge gaps remain on how to better manage biosphere use to meet environmental and economic requirements in a climate neutral Europe, and how to promote more sustainable consumption patterns to guarantee environmental integrity. 6.Unlocking the opportunities of the bioeconomy Key messages on possible future directions of the EU Bioeconomy Strategy: ·The implementation of the EU Bioeconomy Strategy needs to be strengthened for the European Green Deal ·Many activities have been successful and should be strengthened ·Future implementation of the actions of the bioeconomy will focus on understanding further the trade-offs on land-use and contribute to a consumption-based bioeconomy 6.1.Stakeholders’ view Feedback received from Member State experts, members of the European Bioeconomy Policy Forum as well as from external stakeholders show a positive perception of the EU Bioeconomy Strategy with its Action Plan. Numerous complementary activities are taking place at national and regional level (SWD Chapter 6). However, the feedback also identified further needs to better respond and contribute to the new policy context since the adoption of the European Green Deal and related initiatives, such as: ·A stronger focus on sustainability assessment and sustainable management and use of biological resources, e.g. by addressing relevant trade-offs and excessive consumption.