COMMISSION STAFF WORKING DOCUMENT
Date: 2012-02-13
Institutions: European Commission
Subjects: EU financing, EU research policy, agronomic research, bio-industry, bioenergy, biofuel, climate change, conservation of resources, innovation, management of resources, organic product, research and development, sustainable development

EUROPEAN COMMISSION 

Brussels, 13.2.2012  
SWD(2012) 11 final 

COMMISSION STAFF WORKING DOCUMENT 
Accompanying the document 

Communication on  

Innovating for Sustainable Growth: A Bioeconomy for Europe 

{COM(2012) 60 final} 

 
 
 
 
  
 
TABLE OF CONTENTS 

COMMISSION STAFF WORKING DOCUMENT ................................................................. 3 

Introduction ................................................................................................................................ 3 

1. 

2. 

3. 

4. 

Aim of the Staff Working Document........................................................................... 3 

The bioeconomy in Europe .......................................................................................... 3 

Process, consultation and preparation .......................................................................... 3 

The Bioeconomy Strategy and Action Plan ................................................................. 3 

Section A – Background to the Bioeconomy Strategy and Detailed Action Plan ..................... 3 

1. 

Background to the Bioeconomy Strategy for Europe .................................................. 3 

1.1. 

Investments in research, innovation and skills............................................................. 3 

1.1.1.  Research and innovation funding................................................................................. 3 

1.1.1.1.  Horizon 2020................................................................................................................ 3 

1.1.2.  Leadership in biosciences ............................................................................................ 3 

1.1.3. 

Implement multidisciplinary education programmes across the EU ........................... 3 

1.1.4. 

Increasing opportunities for high- and low-skilled labour forces ................................ 3 

1.2. 

Reinforced policy interaction and stakeholder engagement ........................................ 3 

1.2.1.  Creating a favourable environment for the bioeconomy: policy coherence and cross-

sectoral interaction ....................................................................................................... 3 

1.2.2.  Policy coherence .......................................................................................................... 3 

1.2.3. 

Improved policy interactions........................................................................................ 3 

1.2.4.  Engaging society, reaching end-users and linking with policy makers ....................... 3 

1.2.5.  Regional approaches .................................................................................................... 3 

1.2.6. 

International cooperation for a global bioeconomy ..................................................... 3 

1.2.7.  Social innovation.......................................................................................................... 3 

1.3. 

Policy implementation and enhancement of markets in the main bioeconomy sectors
...................................................................................................................................... 3 

1.3.1.  Agriculture and forestry ............................................................................................... 3 

1.3.1.1.  Land use and the transition towards more sustainable production .............................. 3 

1.3.1.2.  Agriculture and climate change ................................................................................... 3 

1.3.1.3.  Livestock production.................................................................................................... 3 

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1.3.1.4.  Forestry ........................................................................................................................ 3 

1.3.1.5.  Policies and public goods............................................................................................. 3 

1.3.1.6.  Agricultural advisory and support services, extension services................................... 3 

1.3.2.  Fisheries and aquaculture............................................................................................. 3 

1.3.2.1.  Sustainable fisheries..................................................................................................... 3 

1.3.2.2.  Sustainable aquaculture................................................................................................ 3 

1.3.2.3.  Marine biotechnology .................................................................................................. 3 

1.3.3.  Bio-based industries ..................................................................................................... 3 

1.3.3.1.  Biorefineries................................................................................................................. 3 

1.3.3.2.  Waste as an alternative biomass source ....................................................................... 3 

1.3.3.3.  Biotechnologies............................................................................................................ 3 

1.3.3.4.  Bio-based products....................................................................................................... 3 

1.3.4.  Food chain.................................................................................................................... 3 

1.3.4.1.  Resource efficiency...................................................................................................... 3 

1.3.4.2.  Food waste ................................................................................................................... 3 

1.3.4.3.  Packaging ..................................................................................................................... 3 

1.3.4.4.  Food safety ................................................................................................................... 3 

1.3.4.5.  Nutrition and dietary choices ....................................................................................... 3 

2. 

2.1. 

2.2. 

2.3. 

The bioeconomy action plan for Europe...................................................................... 3 

Investment in research, innovation and skills .............................................................. 3 

Reinforced policy interaction and stakeholder engagement ........................................ 3 

Enhancement of markets and competitiveness in bioeconomy sectors ....................... 3 

Section B - Estimating the impact of EU level research funding and better policy interaction 
in Bioeconomy ........................................................................................................................... 3 

1. 

1.1. 

1.2. 

1.3. 

1.4. 

2. 

3. 

The justification for EU action..................................................................................... 3 

A common view and a global answer for the main challenges.................................... 3 

Overall economic added value in a single market ....................................................... 3 

A stronger EU commitment ......................................................................................... 3 

The benefits of EU research and innovation ................................................................ 3 

Scenarios ...................................................................................................................... 3 

Comparing the policy scenarios ................................................................................... 3 

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3.1. 

3.2. 

How the options were compared.................................................................................. 3 

Comparison by criteria................................................................................................. 3 

3.2.1.  Policy interaction potential .......................................................................................... 3 

3.2.2. 

Innovation performance of scenarios ........................................................................... 3 

3.2.3.  Strengthening "public good" policy ............................................................................. 3 

3.2.4.  Sustainability................................................................................................................ 3 

3.2.4.1.  Environmental impacts................................................................................................. 3 

3.2.4.2.  Social impacts .............................................................................................................. 3 

3.2.4.3.  Economic impacts ........................................................................................................ 3 

3.3. 

Comparing and choosing the Scenarios ....................................................................... 3 

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COMMISSION STAFF WORKING DOCUMENT 
Accompanying the document 

Communication on  

Innovating for Sustainable Growth: A Bioeconomy for Europe 

Introduction 

1. 

AIM OF THE STAFF WORKING DOCUMENT 

The  present  Staff  Working  Document  accompanies  the  Communication  from  the  European 
Commission  to  the  European  Parliament,  the  Council,  the  Economic  and  Social  Committee 
and the Committee of the Regions on "Innovating for sustainable growth: A bioeconomy for 
Europe"  (hereafter  "the  Communication").  The  Communication  presents  a  Bioeconomy 
Strategy and Action Plan whose goal is to emphasise the importance of the bioeconomy for 
Europe in addressing major societal and economic challenges and to create a more favourable 
environment for its realisation.  

The  Staff  Working  Document  presents  in  Section  A  some  background  information, 
supporting  facts  and  concrete  examples  that  demonstrate  the  critical  importance  of  the 
Bioeconomy Strategy to address the significant societal and economic challenges that Europe 
needs to overcome. It is complemented by a more detailed version of the Bioeconomy Action 
Plan  that  aims  at  implementing  this  ambition.  Section  B  of  the  Staff  Working  Document 
presents some scenarios based on Horizon 2020 and reinforced policy interaction arising from 
the Bioeconomy Strategy.. 

2. 

THE BIOECONOMY IN EUROPE 

The  bioeconomy  encompasses  the  production  of  renewable  biological  resources  and  their 
conversion  into  food,  feed,  bio-based  products1  and  bioenergy.  It  includes  agriculture, 
forestry,  fisheries,  food  and  pulp  and  paper  production,  as  well  as  parts  of  chemical, 
biotechnological and  energy industries. Its sectors have a  strong innovation potential due to 
their  use  of  a  wide  range  of  sciences  (life  sciences,  agronomy,  ecology,  food  science  and 
social  sciences),  enabling  and  industrial  technologies  (biotechnology,  nanotechnology, 
information  and  communication  technologies  (ICT),  and  engineering),  and  local  and  tacit 
knowledge. 

Based  on  available  data  from  a  wide  range  of  sources  it  is  estimated  that  the  European 
bioeconomy has an annual turnover of about €  2  trillion  and  employs  more  than  22  million 

1 

Note:  Bio-based  products  are  products  that  are  wholly  or  partly  derived  from  materials  of  biological 
origin,  excluding  materials  embedded  in  geological  formations  and/or  fossilised,  CEN  -  Report  on 
Mandate M/429 

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people and approximately 9% of the total EU workforce2 (see Table 1). With more than 80% 
of  its  land  covered  by  farms  or  forests  and  maritime  areas  supporting  fisheries  of  global 
significance,  the  EU  is  largely  self-sufficient  for  many  farm,  forest  and  some  sea  products. 
The  EU  also  has  a  strong  innovation  potential  arising  from  an  excellent  science  and 
technology base, which has given rise to many well-established and world-leading food, pulp 
and paper, chemical and petrochemical industries.  

2 

BECOTEPS (2011) The European Bioeconomy in 2030: Delivering Sustainable Growth by addressing 
the Grand Societal Challenges 

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Table 1: The bioeconomy in the European Union3  

Annual turnover (billion €) Employment (thousands)  Data source 

Sector 

Food 

Agriculture 

Paper/Pulp 

965 

381 

375 

Forestry/Wood ind. 

269 

Fisheries and 
Aquaculture 

32 

4400 

12000 

1800 

3000 

500 

Bio-based industries 

 Bio-chemicals and 
plastics 

50 (estimation*) 

150 (estimation*) 

 Enzymes 

0.8 (estimation*) 

5 (estimation*) 

 Biofuels 

Total 

6** 

2078 

150 

22005 

CIAA 

COPA-COGECA, Eurostat 

CEPI 

CEI-BOIS 

EC*** 

USDA, Arthur D Little, 
Festel, McKinsey, CEFIC 

Amfep, Novozymes, 
Danisco/Genencor, DSM 

EBB, eBio 

*Estimation for Europe for 2009; **Estimation based on a production of 2.2 million tonnes bioethanol and 7.7 million tonnes of biodiesel at 
average market price in Europe; ***EC, Facts and figures on the CFP, Basic Statistics Data, ISSN 1830-9119, 2010 Edition 

3. 

PROCESS, CONSULTATION AND PREPARATION 

The  idea  to  consider,  in  a  common  context,  various  sectors  of  the  economy  that  produce, 
process  and  reuse  renewable  biological  resources  has  been  discussed  in  Europe  since  the 
middle  of  the  last  decade.  In  2005,  the  UK  Presidency  of  the  EU  organised  with  the 
Commission  a  conference  on 
the  slogan 
“Transforming  life  sciences  knowledge  into  new,  sustainable,  eco-efficient  and  competitive 
products”. The German Presidency supported this initiative and hosted in 2007 a conference 
entitled  “En  Route  to  the  Knowledge-Based  Bio-Economy”,  where  the  Cologne  Paper4  was 
presented, a document prepared by experts from both academia and industries and outlining a 
perspective for the bioeconomy in Europe within the next 20 years. 

the  knowledge-based  bioeconomy  under 

On 13-14th of September 2010, the Belgian Presidency, in cooperation with the Commission, 
hosted the conference on "The knowledge based bio-economy towards 2020", the conclusions 
of which have "highlighted the importance of the European bio-economy today", "concluded 
that  the  EU  has  core  strength  in  research  in  the  biological  sciences",  and  "confirmed  the 
strong  commitment  of  all  stakeholders  to  build  the  European  bio-economy  for  bringing  the 
bio-economy to its full potential, but through practical and concrete actions which will make a 
difference to businesses and the way we lead our lives"5.  

3 

4 
5 

Table  adapted  from  Table  1  (page  14)  of  The  Knowledge-Based  Bio-Economy  (KBBE)  in  Europe: 
Achievements and Challenges, Full Report, presented at the KBBE Conference on 14 September 2010 
– www.kbbe2010.be/en/kbbe2010/about-kbbe/kbbe-report 
German Presidency (2007) En Route to the Knowledge-Based Bio-Economy (Cologne Paper) 
Belgian  Presidency  (2010)  The  Knowledge  Based  Bio-Economy  in  Europe:  Achievements  and 
Challenges 

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These conclusions have urged the Commission to prepare a Communication to the European 
Parliament,  the  Council,  the  Economic  and  Social  Committee  and  the  Committee  of  the 
Regions  entitled  "Innovating  for  Sustainable  Growth:  a  Bioeconomy  for  Europe",  as  one  of 
the  operational  proposals  of  the  Europe  2020  Strategy  and  its  flagship  initiative  "An 
Innovation  Union",  also  contributing  to  other  flagships,  such  as  “A  Resource  Efficient 
Europe”6, “An industrial policy for the globalisation era” and “An agenda for new skills and 
jobs”. The Multi-annual Financial Framework for 2014-20207, and some of its key proposals, 
such as Horizon 2020 and the Common Agricultural Policy (CAP) post-2013, duly take into 
account the bioeconomy.  

Many  sources  inspired  the  preparation  of  the  Communication  "Innovating  for  Sustainable 
Growth: a Bioeconomy for Europe" and this accompanying Staff Working Document. They 
build on a number of important, recently published foresight reports, which call for ambitious 
approaches  incorporating  and  integrating  all  scientific  disciplines  of  the  bioeconomy  to 
address  major  societal  challenges  at  European  and  global  level.  Reports  include,  among 
others:  “The  Bioeconomy  to  2030”  by  the  Organisation  for  Economic  Co-operation  and 
Development (OECD)8, the World Wildlife Fund (WWF) report on industrial biotechnology9, 
the report on the future of industrial biorefineries by the World Economic Forum (WEF)10, the 
French  "Agrimonde"  study11,  the  British  study  on  the  future  of  food  and  farming12,  the  3rd 
foresight  report  of  the  Standing  Committee  on  Agricultural  Research  (SCAR)13,  the 
BECOTEPS final report14 and KBBE-Net analyses. It has also taken stock of the increasing 
number  of  bioeconomy  initiatives  launched  at  Member  States  level,  e.g.  in  Germany15,  the 
Netherlands16, Finland17, France, Belgium and Sweden (non-exhaustive list). 

The results of ex-post evaluations of projects funded under past and the current Framework 
Programme for Research and Technological Development, i.e. FP5, FP6 and FP7, in the field 
of Food, Agriculture and Fisheries and Biotechnology have been another important source of 
information,  as  they  describe  the  achievements  and  shortcomings  of  European  funded 
research  and  innovation  in  the  bioeconomy.  Furthermore,  two  independent  experts  groups 
have  produced  crucial  background  information  on  the  social,  environmental  and  economic 
impacts of the bioeconomy, as well as on skills. The latter were identified as a key element to 
support  the  development  of  the  bioeconomy  in  Europe.  Finally,  Commission  services  have 

6 
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8 
9 
10 
11 

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14 

15 
16 

17 

COM(2011)21 
COM(2011) 500/I final and COM(2011) 500/II final 
OECD (2009) The Bioeconomy to 2030: Designing a policy agenda 
WWF (2009) Industrial Biotechnology: More than green fuel in a dirty economy? 
WEF (2010) The Future of Industrial Biorefineries 
Agrimonde  (2011)  AGRIMONDE  foresight  study  on  global  agriculture  and  food  between  now  and 
2050 
The Government Office for Science (2011) Foresight. The Future of Food and Farming. Final Project 
Report 
SCAR  (2011)  The  3rd  SCAR  Foresight  Exercise;  Sustainable  food  consumption  and  production  in  a 
resource-constrained world, Standing Committee on Agricultural Research (SCAR), February 2011  
The  Bio-Economy  Technology  Platforms  project;  Final  report:  "The  European  Bioeconomy  in  2030: 
Delivering Sustainable Growth by addressing the Grand Societal Challenges" 
BioÖkonomieRat (2010) Bio-economy Council Report 2010: Bio-economy Innovation 
Wetenschappelijke  en  Technologische  Commissie  voor  de  Biobased  Economy  (2011)  Kennis-  en 
innovatieagenda voor de biobased economy: Naar groene chemie en groene materialen 
Bio-based  economy  for  Europe:  state  of  play  and  future  potential  -  Report  on  the  European 
Commission’s 
http://ec.europa.eu/research/bioeconomy/news-
events/news/20110926_en.htm 

consultation 

on-line 

Public 

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benefited  from  the  support  of  an  expert  review  group  to  assess  the  expected  impacts  of 
different policy options to support the development of the bioeconomy in Europe.  

In  order  to  gather  information  and  opinions  from  stakeholders  and  civil  society,  the  public 
consultation “Bio-based economy for Europe: state of play and future potential”18 was open 
from  22  February  to  2  May  2011.  It  consisted of  a  series  of  multiple-choice  and  semi-open 
questions, designed to collect views of stakeholders active in the field and of public at large 
on the benefits, risks and concerns and potential of the bioeconomy today and in the future. It 
further  sought  to  gather  their  opinions  on  future  directions  for  policy  interactions,  research 
and  innovation  actions,  actions  in  relation  to  the  promotion  of  bio-based  industries  and  the 
involvement of the public.  

About  200  replies  were  received  from  the  private  sector  (42%),  the  academic  sector  (33%), 
the  public  sector  (14%)  and  NGOs  (11%).  Respondents  also  represented  a  wide  range  of 
economic  sectors,  mainly  agriculture  (34%),  environment  (20%),  food  and  feed  (20%), 
industrial  biotechnology  (16%),  but  also  energy  and  biofuels,  forestry,  socio-economics, 
chemicals, health, fisheries and aquaculture, transport, and others. Respondents to the public 
consultation  thus  covered  the  main  sectors  of  the  bioeconomy.  Two  independent  experts 
assisted  in  providing  quantitative  and  qualitative  analysis  of  the  results  of  the  public 
consultation and in outlining main opinion trends. 

• 

Optimism over the potential of the bioeconomy to address key challenges… 

The  outcome  of  the  public  consultation  showed  that  most  respondents  were  optimistic  over 
the potential benefits of the bioeconomy. The main benefits perceived achievable in the short 
term  were  reducing  waste  and  pollution  (73%),  providing  agricultural  advisory  services 
and/or knowledge transfer systems to farmers (66%) and increasing the uses of bio-waste and 
other waste streams (64%). It is important to observe that respondents from public (61%) and 
private  sector  (51%)  were  more  optimistic  over  the  short  term  benefits  of  the  bioeconomy 
than academic sector (43%) or NGOs (45%), which have a high share of respondents cautious 
over the perspective for the bioeconomy (23%). 

• 

… but concerns related to risks associated to the bioeconomy's expansion  

Despite  being  mainly  optimistic,  an  important  share  of  respondents  (48%)  perceived  high 
risks in the development of the bioeconomy. The main concerns were that food security and 
resources in developing countries were put under pressure because of increased production for 
non-food use (80%); natural resources were overexploited and biodiversity decreased (70%); 
and  deforestation  increased  due  to  food  and  non-food  production  (63%).  Opinions  differed 
according to sectors of respondents; NGOs (73%) and academic (54%) sectors believed that 
high risks were related to the expansion of the bioeconomy, while public (46%) and private 
(38%)  sectors  tended  to  minimise  them.  In  terms  of  professional  fields,  while  respondents 
from industrial biotechnology were the only ones perceiving more frequently low risks than 
high risks, an overwhelming majority of respondents from the forestry sector (66%) perceived 
mainly high risks. 

• 

18 

EN 

Necessity of developing a coherent policy framework for bioeconomy 

Public  consultation  “Bio-based  economy  for  Europe:  state  of  play  and  future  potential”  from  22 
February to 2 May 2011 - http://ec.europa.eu/research/consultations/bioeconomy/consultation_en.htm 

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• 

• 

The involvement of a wide range of policies was considered necessary to support the 
bioeconomy:  Research  and  innovation  (92%),  agriculture  and  rural  development 
(86%),  environment  (83%),  energy  (80%),  industry  (71%),  and  climate  change 
(67%) are perceived as very important to foster the development of the bioeconomy.  

Barriers at EU and national levels prevent the efficient development of a European 
bioeconomy today 

Respondents observe that barriers hindering the development of the bioeconomy exist at both 
EU  and  national  levels  (77%),  or  mainly  at  EU  level  (9%).  The  main  barriers  perceived  at 
both  EU  and  national  levels  are  the  insufficient  links  between  decision  makers  and 
stakeholders from the bioeconomy (76%), and the insufficient links between policies related 
to the bioeconomy (73%). 

• 

The development of the bioeconomy requires action at both EU and national levels 

The outcome of the public consultation shows that respondents request that action be taken at 
both EU and national levels. This concern is fully taken into consideration in the Bioeconomy 
Strategy and Action Plan, which set up objectives to aim at and actions to take at both EU and 
Member  States'  levels.  According  to  the  respondents,  the  main  actions  required  at  both  EU 
and national levels are: 

• 

A coherent framework for effective policy interactions and coordination: 

– 

– 

Strengthen links between existing funding instruments for the promotion 
of the bioeconomy (80%) 

Provide  a  coordination  mechanism  for  all  relevant  policy  portofolios 
related to the bioeconomy (78%) 

• 

Research actions necessary to implement the European bioeconomy: 

– 

– 

Support research into industrial applications (78%) 

Foster industrial involvement in research and innovation projects (77%) 

• 

Support to bio-based markets, economic growth and sustainable employment: 

– 

– 

Improve access to finance for research and innovation (82%) 

Propose  incentives  for  industries  trying  to  take  innovative  bio-based 
products to market (73%) 

• 

Better engagement of society and foster social innovation in the bioeconomy: 

– 

– 

Enhance  actions  related 
information on the advantages and risks of the bioeconomy (77%) 

to  communication  and  dissemination  of 

Improve information on bio-based products for consumers (71%) 

Overall,  respondents  were  confident  on  the  potential  benefits  of  a  European  strategy  for  a 
sustainable bioeconomy (44% strongly, and 42% moderately). Strongest agreement is on the 

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advantages  of  securing  a  sufficient  supply  of  food  and  biomass  (57%  strongly  agree), 
developing  integrated,  sustainable  agricultural,  aquatic  and  ecosystem  services  (43%),  and 
fostering the move towards a zero waste society (43%). However, analysis of the results of the 
public consultation and of the 35 position papers received show that NGOs tend to support a 
definition  of  the  bioeconomy  more  public  goods-oriented,  using  natural  inputs,  expanding 
minimum amounts of energy, and producing minimum amounts of waste. 

An  analysis  of  position  papers  received  on  the  public  consultation  on  the  EU  Framework 
Programme  for  Research  and  Innovation  from  the  bioeconomy  sector  provided  also  useful 
indication  on  the  public  request  to  engage  more  with  society  and  to  support  Small  and 
Medium  Enterprises  efforts  in  research  and  innovation.  Respondents  underline  that  primary 
objective  of  the  bioeconomy  should  be  to  ensure  food  security,  to  mitigate  and  adapt  to 
climate change and to preserve natural resources. 

4. 

THE BIOECONOMY STRATEGY AND ACTION PLAN 

The  Bioeconomy  Strategy  through  its  Action  Plan  strives  to  address  the  issues  highlighted 
during the public consultation and in discussion with various stakeholders. It aims to pave the 
way  to  a  lower  emission,  resource  efficient  and  competitive  society  that  reconciles  food 
security  with  the  sustainable  use  of  renewable  resources  for  industrial  purposes  and 
environmental protection.  

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Section A – Background to the Bioeconomy Strategy and Detailed 
Action Plan 

Section A of this Staff Working Document provides further background information, 
supporting facts and concrete examples to the Bioeconomy Strategy and Action Plan. It does 
this by providing more comprehensive discussions of the main elements that will be covered 
by the three large areas of the Strategy, which is complemented by a more detailed version of 
the Action Plan that formulates sub-actions to the main list of actions of the Communication. 

1. 

BACKGROUND TO THE BIOECONOMY STRATEGY FOR EUROPE 

The Bioeconomy Strategy focuses on three large areas: the investment in research, innovation 
and  skills,  the  reinforcement  of  policy  interaction  and  stakeholder  engagement  and  the 
enhancement of markets and competitiveness in bioeconomy sectors.  

1.1. 

Investments in research, innovation and skills 

1.1.1.  Research and innovation funding 

As  highlighted  in  the  Innovation  Union,  the  European  research  and  innovation  landscape  is 
still deeply compartmentalised. This also affects the bioeconomy: 85% of public research and 
development (R&D) is programmed, financed, monitored and evaluated at national level with 
only little trans-national collaboration or coordination. Less than 6% of total R&D investment 
and only 15% of European publicly funded R&D is financed in a cross-border collaborative 
manner19,  in  particular  through  the  EU  Framework  Programmes  for  Research  and 
Technological Development (FPs). Lack of collaboration and coordination between national 
public  R&D  programmes  is  one  of  the  obvious  causes  for  sub-optimal  returns  from  R&D 
spending20.  

The  setting  up  of  16  ERA-NETS  and  2  Joint  Programming  Initiatives  (JPIs)  related  to  the 
bioeconomy over the past years has demonstrated the willingness and benefits of cross border 
collaboration  in  public  research.  Supporting  technology  transfer  or  stimulating  SMEs  to 
participate  in  “open  innovation”  programmes  are  also  an  essential  procedure21,  for  example 
through the Competitiveness and Innovation Programme (CIP). Innovation is expected to play 
a major role in driving the European science base, strengthening links with policies and the 
exploitation  of  research  results  within  the  implementation  of  policies.  Moving  to  a  strong 
bioeconomy  would  require  leveraging  further  public  and  private  investment,  increasing  the 
positive  effects  of  spill-over,  improving  research  productivity,  launching  public-private 
partnerships  (PPPs),  and  creating  incentives  for  and  reducing  barriers  to  technology 
development and research-based innovation. 

19 

20 

21 

Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European 
Economic  and  Social  Committee  and  the  committee  of  the  Regions.  Towards  Joint  Programming  in 
research: Working together to tackle common challenges more effectively. Brussels, COM(2008) 468. 
Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European 
Economic  and  Social  Committee  and  the  committee  of  the  Regions.  Towards  Joint  Programming  in 
research: Working together to tackle common challenges more effectively. Brussels, COM(2008) 468 
Belgian  Presidency  (2010)  The  Knowledge  Based  Bio-Economy  in  Europe:  Achievements  and 
Challenges 

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Providing a scientific evidence base for policy-making will remain an important objective of 
European research. The bioeconomy will further enrich this function by making the research 
more multidisciplinary through the integration of disciplines and sectors; in this context it will 
also  address  societal  challenges  taking  into  account  social,  economic,  environmental  and 
policy dimensions. 

1.1.1.1.  Horizon 2020 

The  EU  budget  for  Europe  202022  proposes  a  EU  Framework  Programme  for  Research  and 
Innovation “Horizon 2020” (2014-2020) with an associated budget of € 87.7 billion. It aims to 
boost Europe's smart, sustainable and inclusive growth by increasing excellence in the science 
base,  promoting  competitiveness  and  industrial  leadership,  and  tackling  societal  challenges 
identified in Europe 2020.  

Horizon  2020  is  expected  to  address  several  aspects  of  the  bioeconomy.  Research  and 
innovation  under  several  Horizon  2020  societal  challenges  are  clearly  related  to  the 
bioeconomy, in particular under "Food security, sustainable agriculture, marine and maritime 
research,  and  the  bioeconomy"  –  for  which  a  dedicated  budget  of  €  4.1  billion  has  been 
proposed  –  but  also  under  parts  of  other  challenges  such  as  "Climate  action,  resource 
efficiency  and  raw  materials",  "Secure,  clean  and  efficient  energy",  "Health,  demographic 
changes  and  wellbeing"  and  "Inclusive,  innovative  and  secure  societies".  This  will  be 
complemented by actions to promote "Industrial Leadership and Competitive Frameworks", 
through  the  development  of  various  enabling  technologies  including  several  relevant  to  the 
bioeconomy  (biotechnology,  nanotechnology,  ICT,  advanced  materials,  manufacturing  and 
processing, and space), as well as by supporting innovation in SMEs and providing access to 
risk finance. The European Institute of Innovation and Technology (EIT) with its Knowledge 
and Innovation Communities (KICs) in different areas will also address questions related to 
the  bioeconomy.  This  applies  in  particular  to  the  theme  "Food4future",  which  has  been 
suggested for one of the KICs to be selected after 2014. Finally, Horizon 2020 research and 
innovation under "Excellent science base" has also a high potential to contribute to progress 
across various bioeconomy sectors – through general support to frontier research, future and 
emerging  technologies,  research  infrastructures  and  to  research  training  and  career 
development. 

Recognising  the  need  for  increased  coherence  among  research  and  innovation  funds  and  in 
order  to  achieve  the  greatest  possible  impact  of  EU  funding,  Horizon  2020  will  also  aim  at 
developing closer synergies with national and regional research and innovation programmes 
(e.g.  through  public-public  partnering),  as  well  as  with  other  EU  programmes  (e.g.  in 
education, competitiveness and SMEs) and funds, such as the structural and Cohesion Policy 
funds.  This  will  help  strengthening  national  and  regional  research  and  innovation  capacities 
and skills, also in the context of  the bioeconomy. PPPs will equally be sought, for research 
and  innovation  agendas  which  are  of  strategic  importance  to  EU  competitiveness  and  to 
address societal challenges, including in the bioeconomy. Commission services are exploring 
the possibilities for establishing a PPP on bio-based industries. 

22 

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1.1.2.  Leadership in biosciences 

Today,  Europe  is  a  global  leader  in  various  fields  of  biosciences  and  -technologies,  for 
example it has a competitive edge in industrial biotechnology for chemical, enzyme, food and 
feed ingredients industries. However, the US, Canada, Japan, India and China are also rapidly 
adopting  industrial  biotechnology  solutions  and  there  are  justified  concerns  about  the  long-
term competitiveness of the European industry23. Europe still has a very strong advantage but 
is increasingly loosing out in pace to other global players24, thus it has already lost leadership 
in  plant  biotechnology.  Investment  in  research  and  innovation  and  adapting  education  and 
training possibilities to today's needs are prerequisites to maintain leadership in these areas. 

1.1.3. 

Implement multidisciplinary education programmes across the EU 

The  transition  to  a  bioeconomy  creates  new  scientific  and  technical  occupations  in  key 
manufacturing and energy sectors, requiring workers with specific mixes of qualifications and 
competences25.  The  bioeconomy  will  also  need  professionals  capable  of  moving  at  the 
interface  of  different  areas,  understanding  the  economical  and  societal  impact  of  their 
activities,  fostering  cross-talk  between  sectors  and  meeting  the  public  demand  for 
transparency  and  accountability26.  Furthermore,  the  demand  for  people  with  the  necessary 
skills  to  exploit  the  results  of  this  research  and  innovation  (e.g.  creativity,  marketing, 
management and entrepreneurship) will increase. It is also important to point out that many 
SMEs  in  sectors  such  as  agriculture,  forestry,  aquaculture  and  food  often  lack  in-house 
technical skills to undertake research or take up results of innovation27. 

Technological  advances  and  structural  changes  require  life-long  learning.  For  example  in 
rural and coastal regions, new uses of biological materials require new skills in the primary 
production sector. It is forecasted that 2.2 million skilled agricultural and fishery workers will 
be needed by 201528. This means that a mix of traditional and completely new competences 
will  have  to  be  applied  across  various  fields  of  activities  in  agricultural,  aquaculture  and 
forestry sectors. 

Establishing  a  Life  Sciences  and  Agricultural  Universities  Forum  will  be  instrumental  to 
facilitate the uptake and development of the bioeconomy in academic contexts, by networking 
and fostering appropriate education, training and research careers related to the bioeconomy. 

1.1.4. 

Increasing opportunities for high- and low-skilled labour forces 

Given  the  strong  potential  mismatch  between  the  European  workforce  and  labour  market 
demands in the bioeconomy in the future, actions are needed to ensure that the EU workforce 
has the right mix of skills, including diversified curricula that are adapted to these needs and 
more attractive for the younger generation. Support to the creation of new, hybrid university 

23 

24 

25 
26 

27 

28 

Directorate-General for Enterprise and Industry (2007). Competitiveness of the European biotechnology 
industry. 
Directorate-General  Research  and  Innovation  (2011)  Review  group  for  the  Staff  Working  Document 
related to the Impact Assessment of the bioeconomy strategy, September 2011  
COM(2009)512  
Belgian  Presidency  (2010)  The  Knowledge  Based  Bio-Economy  in  Europe:  Achievements  and 
Challenges 
Directorate-Genaral  Research  and  Innovation  (2011)  Review  group  for  the  Staff  Working  Document 
related to the Impact Assessment of the bioeconomy strategy, September 2011  
Cedefop (2008) Skillsnet sectorflash: agrifood 

EN 

14 

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curricula  targeted  at  developing  interdisciplinary  competences  in  a  broad  range  of  fields 
including life sciences, natural sciences, engineering, business, economy, learning, and social 
sciences  should  be  intensified29.  Mobility  between  country  and  cross-recognition  of 
qualifications between Member States, but also between sectors and stakeholder groups needs 
to be improved and implemented. In addition a strong entrepreneurial and innovation culture 
needs to be stimulated as well as life-long learning programmes, with short modules leading 
to recognised European qualifications. 

At the same time, studies related to innovation in some bioeconomy sectors indicate that these 
often  employ  a  relatively  important  share  of  low  skill  employees.  This  has  implications  for 
increasing EU job opportunities30.  

1.2. 

Reinforced policy interaction and stakeholder engagement 

1.2.1.  Creating a favourable environment for the bioeconomy: policy coherence and cross-

sectoral interaction 

Due  to  its  broad  scope,  the  bioeconomy  is  subject  to  a  wide  range  of  policies  at  national, 
European and international level, ranging from supply-side research through to demand-side 
support  to  business  and  consumers.  It  also  takes  into  account  society’s  legitimate  concerns 
about the safety, quality and origin of biological resources and products. Owing to the cross-
sectoral  nature  of  the  bioeconomy,  many  of  its  activities  are  controlled  by  different  public 
bodies or are part of wider organisational structures in the private sector.  

Poor  coherence  between  decision-makers  and  stakeholders  are  often  at  the  origin  of 
regulatory  failures,  as  is  the  lack  coherent  approaches  between  Member  States  and  across 
sectors.  The  incompatibility  of  market  regulation  with  environmental  and  social  regulation 
can sometimes cause conflicts, such as the European targets on renewable energy that distort 
the  market  for  biomass.  Subsidies  or  trade  can  also  be  an  issue  due  to  irreconcilable 
international obligations or policy objectives. Trade-offs are inevitable.  

1.2.2.  Policy coherence 

Developing  and  promoting  a  bioeconomy  that  provides  biological  resources,  products  and 
public  goods  in  a  sustainable  manner  is  a  relatively  new  concept.  Accordingly,  this 
observation  was  confirmed  by  the  results  of  the  Public  Consultation31  and  stakeholder 
meetings  (also  see  Section  B  of  this  Staff  Working  Document).  According  to  their  findings 
regulatory  and  market  failures  as  well  as  fragmented  policies  and  activities  are  the  main 
obstacles  to  the  efficient  development  of  the bioeconomy,  as  well  as  the  lack  of  a  coherent 
policy interaction model. 

The  potential  of  the  bioeconomy  will  only  be  fully  realised  by  working  across  several 
disciplines,  policy  areas  and  sectors  with  a  strong  willingness  to  jointly  address  diverse 
responsibilities. Areas where greater benefit could be obtained from better policy coherence 

29 

30 

31 

Directorate-General Research and Innovation (2011) Experts group report for "Skills needs in the future 
bio-based economy" (p.46) June 2011  
Directorate-General  Enterprise  and  Industry  (2009)  Ecorys  Study  on  the  "Competitiveness  of  the  EU 
eco-industry" (p.56) October 2009 
European  Commission  Public  Consultation  "Bio-based  economy  for  Europe:  state  of  play  and  future 
potential", Feb-May 2011 

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may  include  the  identification  and  deployment  of  the  most  promising  pathways  for  next 
generation  biofuels  and  bio-based  products,  facilitation  of  their  commercialisation  and  use, 
coordinated  national  planning  with  respect  to  waste  management  and  use,  better  consumer 
acceptance  of  new  technologies,  and  understanding  the  linkages  between  non-food  use  of 
food commodities and agricultural land, on the one hand, and food price levels and volatility 
on the other hand in view of adapting measures to prevent adverse effects.  

The  EU  is  engaged  in  the  harmonisation  of  legislation  and  monitors  the  implementation  of 
European  policy  objectives.  It  also  promotes  new  instruments  that  could  improve  the 
achievement of different kinds of objectives, such as the application of emission trading to the 
waste issue. It has been demonstrated that such instruments could generate more employment 
if financial benefits are invested in research and innovation. 

One of the major objectives of the Bioeconomy Strategy is to contribute to achieving the full 
potential  of  the  bioeconomy  by  providing  the  knowledge  base  for  a  coherent  policy 
framework  and  promoting  relevant  innovation  activities,  thereby  giving  specific  support  to 
markets and policies related to the bioeconomy. The Strategy will achieve this by building on 
FP7,  Horizon 2020 and by complementing other relevant existing policy initiatives, such as 
the EIPs. 

1.2.3. 

Improved policy interactions 

A  bioeconomy  interaction  model  will  be  established,  building  on  existing  structures,  to 
promote  the  bioeconomy  by  developing  synergies,  complementarities  and  a  more  informed 
dialogue  on  policies  and  programmes,  increasing  the  availability  of  resources,  developing 
joint actions, involving stakeholders, and monitoring and reviewing progress. The creation of 
similar interaction models in Member States will be encouraged.  

The policy interaction model for the bioeconomy will encompass the following elements: 

A  Bioeconomy  Panel  will  provide  a  discussion  platform  and  flexible  framework  to  support 
interaction,  strategic  planning  and  implementation  of  the  bioeconomy  strategy.  It  will  be 
mandated  to:  (1)  give  advice  on  the  implementation  of  the  strategy,  reinforcing  interaction 
between various policies and reinforcing synergies between national and European efforts; (2) 
suggest  European  joint  actions  and  measures;  and  (3)  monitor  and  evaluate  progress  in  a 
systematic manner. The Bioeconomy Panel will be composed of:  

• 

• 

• 

The relevant European Commission services covering the main bioeconomy related 
policies and sectors (including the Directorates-General for Research and Innovation, 
Agriculture and Rural Development, Enterprise and Industry, Environment, Maritime 
Affairs and Fisheries).  

Member States representatives from bioeconomy-relevant ministries, with an overall 
balanced representation of the main bioeconomy sectors and policies (i.e. agriculture 
and  forestry,  fisheries  and  aquaculture,  environment,  research  and  education, 
enterprises and industry, and health and consumer affairs), as well as of the different 
Member States.  

Representatives of relevant stakeholders groups, including respectively: i) industrial 
sectors  associations  ii)  universities,  researcher  organisations  and  the  scientific 

EN 

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community; 
environmental organisations.  

farmers, 

iii) 

foresters, 

fishermen;  and 

iv)  non-governmental 

The  Panel  participants  will  be  invited  and  the  meetings  will  be  chaired  by  the  European 
Commission. 

A  regular  Bioeconomy  Stakeholders  Conference  will  provide  opportunities  for  public 
awareness  raising  and  for  an  informed  dialogue  on  the  yearly  progress  of  the  Bioeconomy, 
involving researchers, stakeholders, policy makers and the civil society at large. 

A  European  Bioeconomy  Information  System  will  be  created  (Bioeconomy  Observatory) 
building  on  various  existing  sources  and  databases.  The  Observatory  will  perform  EU 
capacity mapping, technology watch, bioeconomy policy outlook, and market monitoring in 
various  areas  related  to  the  bioeconomy,  as  well  as  forward  looking  analyses  at  EU  and 
world-wide  levels.  Collaboration  with  the  Joint  Research  Centre  (JRC),  the  European 
Environment Agency (EEA) and Eurostat will be sought. 

Broad advice will be provided through a flexible system of Hearings, where various existing 
Commission  working/advisory  groups  or  committees  (e.g.  Standing  Committee  for 
Agricultural  Research;  Ad-hoc  Advisory  Group  for  Bio-based  Products  within  the  Lead 
Market Initiative, the EU Food Sustainable Consumption and Production Round Table, etc) as 
well  as  stakeholders  groups  can  provide  information  and  raise  issues  with  the  Bioeconomy 
Panel.  Links  will  be  ensured  also  with  relevant  European  Innovation  Partnerships,  public-
public  partnering  (e.g.  Joint  Programming  Initiatives)  and  public-private  partnerships 
established in bioeconomy related areas. 

1.2.4.  Engaging society, reaching end-users and linking with policy makers 

The  Public  Consultation32  pointed  out  the  importance  of  developing  suitable  discussion  and 
coordination platforms for the European bioeconomy with wide participation of stakeholders. 
Open  and  informed  public  debates  should  take  place  on  bioeconomy  related  research  and 
innovation  issues  that  may  raise  societal  concerns,  such  as  the  “food  versus  fuel”  debate. 
These  debates  should  involve  the  research  and  innovation  community,  stakeholders,  policy 
makers and society at large and thus provide a basic mechanism for reliable insight into the 
benefits  and  risks  of  innovative  technologies  and  existing  practices,  and  more  ample 
opportunities to discuss new findings and their implications. Furthermore, citizens have to be 
provided  with  more  information  about  product  properties  (e.g.  on  sustainability)  and  the 
impacts of consumption patterns and lifestyle (for instance on the issue of waste), in order to 
enable responsible and informed consumer choices.  

A stronger EU scale dissemination of research and innovation results, continuous knowledge 
exchange  and  information  flow  to  end-users  and  policy-makers  should  be  systematically 
ensured. Reinforcing informed dialogue between bioeconomy research and policy making and 
securing EU public funding for research in support to bioeconomy-related policies will also 
be  fundamental  to  ensure  that  public  research  results  provide  a  sound  scientific  basis  for 
responsible political decisions.  

32 

European  Commission  Public  Consultation  "Bio-based  economy  for  Europe:  state  of  play  and  future 
potential", Feb-May 2011 

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Organising  meetings  of  leading  scientists  on  an  ad-hoc  basis  would  provide  valuable 
opportunities  to  facilitate  consensus  reaching  and  to  promote  the  use  of  scientific  evidence 
towards  tackling  societal  challenges  as  input  for  policy  making,  as  well  as  for  pinpointing 
missing elements in the knowledge base. 

1.2.5.  Regional approaches  

The  bioeconomy  can  significantly  contribute  to  the  future  development  of  rural  and  coastal 
areas because it will promote both supply and demand actions with regional dimension, such 
as the creation of supply chains for residues and waste as feedstock for bio-based industries, 
setting  up  of  a  network  of  small-scale  local  biorefineries  or  developing  aquaculture 
infrastructures.  

Research  and  innovation  will  have  an  important  upstream  role  in  the  development  of  these 
activities  and  will  be  supported  by  Horizon  2020,  as  well  as  by  the  reformed  CAP  and 
Cohesion Policy. In particular, the proposed reinforced focus of the future Cohesion Policy on 
innovation  and  sustainable  growth  will  offer  broad  opportunities  to  local  and  regional 
authorities and stakeholders to co-finance programmes and projects boosting the bioeconomy 
in  the  framework  of  national  and  regional  strategies  for  smart  specialisation.  Support  to 
infrastructures within the management of coastal and rural areas is also compatible with the 
Common Fisheries Policy (CFP) and Cohesion Policy objectives. They contribute to the local 
and  regional  economy33  which  is  the  appropriate  environment  for  the  development  of  the 
above mentioned technologies. However, scale-up dynamics for these activities must account 
for a wide range of factors such as transport and storage costs, environmental regulations, and 
land use aspects.  

Adaptation to climate change will be subject to regional choice of fund investment and social 
innovation initiative will also strengthen local and regional development  

1.2.6. 

International cooperation for a global bioeconomy 

Engaging with global partners for a faster advance of research and innovation related to the 
bioeconomy world-wide will be essential to maximise the sustainable use of natural resources 
and  to  foster  positive  socio-economic,  environmental  and  climate  change  impacts.  The 
Bioeconomy  Strategy  will  engage  in  systematic  international  policy  dialogues  and  strategic 
partnerships.  Cooperation  in  research  and  innovation  and  other  policy  areas  related  to  the 
bioeconomy can be reinforced through diverse partnerships.  

These  cooperations  will  include  the  G20  and  major  trade  partners  (e.g.  on  globally  relevant 
criteria for sustainability of biomass production and use), major agricultural producers (e.g. on 
cutting  edge  technologies  for  food  safety,  reduced  water  and  environmental  impacts,  and 
energy  security),  emerging  economies,  which  are  showing  very  fast  developments  in 
bioeconomy  strategies  and  actions,  and  developing  countries  to  address  the  Millennium 
Development Goals of tackling hunger and ensuring environmental sustainability. The world 
initiative  Rio+20  on  green  economy  will  also  support  bioeconomy  activities.  Adaptation  to 
and mitigation of climate change will have to be addressed in depth, taking into account trade-
offs between policies which could occur in various global regions, in particular in developing 
countries.  

33 

COM(2010) 1183 

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1.2.7.  Social innovation 

The bioeconomy is a domain where many examples of social innovation could take place both 
at European and international level. The aim of social innovation is to solve social issues at 
large  or  at  local  scale  through  the  promotion  of  innovative  approaches  and  practices.  These 
should  combine  organisational  development  and  new  forms  of  interaction  and  cooperation 
between  organisations  in  the  public,  private  and  NGO  sectors,  cutting  across  established 
responsibilities,  learning  environments  uses  of  technology,  and  socio-economic  or  scientific 
knowledge.  Participation  of  stakeholders  is  essential  to  ensure  acceptance,  end-user 
orientation and benefits of the innovative solutions promoted, and to facilitate the exchange of 
best  practices.  Social  enterprises  are  key  drivers  for  social  innovation  in  the  bioeconomy 
domain 

Bioeconomy  social  innovation  could  include  increasing  energy  and  resource  efficiency 
through attitudinal and organisational changes, ways to re-use and recycle bio-based products, 
treatment  of  end-use  level  waste,  the  development  of  local  networks  for  the  production  and 
distribution of food products requiring new forms of production. The bioeconomy also offers 
a  huge  potential  for  social  innovation  in  the  area  of  health,  diet,  education,  and  rural  and 
coastal development. 

1.3. 

Policy  implementation  and  enhancement  of  markets  in  the  main  bioeconomy 
sectors 

1.3.1.  Agriculture and forestry 

Over  the  coming  decades  Europe  will  be  challenged  by  dwindling  natural  resources,  the 
effects of climate change and the need to provide a sustainable, safe and secure food supply 
for  a  growing  global  population.  The  goal  is  to  provide  agriculture  and  forestry  with  the 
required  knowledge  and  tools  to  support  productive, resource-efficient  and resilient systems 
that  supply  food,  feed  and  other  bio-based  raw-materials  without  compromising  ecosystems 
services,  while  supporting  the  development  of  incentives  and  policies  for  thriving  rural 
livelihoods.  

The  expected  70%  increase  in  world  food  demand  by  205034  and  a  steep  increase  in  the 
demand  for  biomass  for  industrial  purposes  will  and  must  trigger  a  supply  reaction  of  EU 
agriculture, being one of the biggest suppliers to global agricultural markets. EU agriculture 
has  a  share  of  18%  in  world  food  exports,  worth  €  76  billion.  In  production  values,  EU 
agriculture provides more than 40% of total OECD food production. Stakeholders, including 
farmers, businesses, industry consumers, and advisory services, need to be provided with the 
solutions they need. To this end close collaboration and synergies need to be ensured across 
all sectors, regions, and policy areas35. 

Policy has a major influence on primary production. In particular environmental policy (e.g. 
through  directives  on  soil,  biodiversity,  water,  nitrate)  and  the  Common  Agricultural  Policy 
(CAP) have an impact on agricultural production methods as well as on individual agriculture 
market  sectors  concerning  the  quality  and  production  of  products  such  as  wine  dairy, 
horticulture, cereals, etc. Agriculture also interacts with and influences consumer, competition 

34 
35 

FAO (2009) How to Feed the World in 2050, High-Level Expert Forum, Rome 12-13 October 2009 
Directorate-General  for  Agriculture  and  Rural  Development  (2011)  Roadmap  for  the  European 
Innovation Partnership "Agricultural Productivity and Sustainability" 

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and  health  policy,  along  with  industrial,  and  information  policies.  Equally  important,  the 
agricultural sector is concerned by and contributes to meeting international commitments, in 
particular  as  regards  policies  for  trade,  biodiversity,  climate  change,  development  and  food 
security.  The  Bioeconomy Strategy will  strive  to  ensure  that the  strategic  importance  of  the 
primary  production  sector  is  clearly  recognised  in  the  light  of  these  manifold  –  and  often 
conflicting – demands. The following issues were identified as crucial to the introduction of 
sustainable production systems in the context of the bioeconomy.  

1.3.1.1.  Land use and the transition towards more sustainable production  

In order to meet food and biomass demand Europe should examine trade-offs concerning land 
resources.  In  2008  the  total  land  cover  of  EU  27  was  around  420  million  hectares  with 
approximately  43%  dedicated  to  agricultural  production  and  40%  to  forestry.  More  than 
1000Km2  are  subject  to  'land  take'  every  year  for  housing,  industry,  roads  or  recreational 
purposes, including some of the most productive agricultural land36. Progress on remediation 
and reuse of brownfield land remains slow, particularly in the continuing absence of specific 
Union  legislation  on  soil  protection.  Land  abandonment  in  some  rural  areas  is  a  reality  and 
linked  with  loss  of  biodiversity  depending  on  farming  systems.  Concerning  non-food 
production  5%  of  land  was  dedicated  to  industrial  usage  (mostly  biofuel  oilseed).  Work  on 
land as a resource to develop the full range of ecosystem services, from crops to fresh water to 
climate change mitigation and adaptation, and taking into account landscape level effects and 
connectivity, is needed to meet this challenge. Balancing food versus fuel demand will require 
greater  study  along  with  further  research  into  agri-environmental  land  management 
infrastructure  and 
concerning 
interconnectivity  of  habitats,  creating  eco-corridors  while  providing  functional  services  for 
pest suppression carbon sequestration or coexistence37. 

the  context  of  biodiversity,  green 

landscapes 

in 

1.3.1.2.  Agriculture and climate change 

Agriculture is a significant contributor to climate change and is in return dramatically affected 
by  climatic  instability.  Agriculture  and  food  production  represent  40%  of  the  total  global 
industrial  energy  demand  (including  emissions  embedded  in  inputs)38,  while  global  direct 
agriculture emissions (without carbon losses from land use and land-use change) make up 10-
12% of total greenhouse gas emissions39. Livestock ruminants alone provide a major portion 
of  these  emissions.  Contrary  to  the  situation  in  EU,  global  nitrous  oxide  and  methane 
emissions  from  agriculture  are  projected  to  increase  by  50%  by  2030  due  to  the  growing 
global demand for meat and biomass for industrial and energy purposes40. 

Research and innovation will aim at increasing the adaptive capacity of plants,  animals and 
production  systems  to  cope  with  rapidly  changing  climate  conditions  and  environments,  as 
well  as  increasingly  scarce  resources.  This  will  include  dealing  with  diversification  and 

36 

37 
38 
39 

40 

Directorate-General 

Gundula Prokop, Heide Jobstmann and Arnulf Schönbauer, Overview of best practices for limiting soil 
sealing or mitigating its effects in EU-27, Environment Agency Austria, Final report on behalf of the 
2011 
Environment 
(http://ec.europa.eu/environment/soil/sealing.htm). 
European Environment Agency: http://www.eea.europa.eu/themes/landuse 
FAO (2009) How to Feed the World in 2050, High-Level Expert Forum, Rome 12-13 October 2009  
IPCC  Fourth  Assessment  Report 
chapter8.pdf 
FAO (2002) World Agriculture towards 2015/2030: Summary Report  

http://www.ipcc.ch/pdf/assessment-report/ar4/wg3/ar4-wg3-

Commission, 

European 

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of 

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specific  adaptation,  mixed  farming  systems  and  land  use  practices,  adaptation  of  plants, 
animals  and  cropping  systems  to  biotic  and  abiotic  stress,  conservation  and  use  of 
biodiversity, as well as specific climate change mitigation and stress adaptation measures at 
farm, forest and landscape level to water scarcity, heat, highly saline soils, new diseases and 
pests,  etc,  and  in  deploying  different  agricultural  practices,  including  biotechnology  as  an 
enabling technology. In addition research will promote the sustainable management of soils, 
exploit  advances  in  conservation  agriculture  and  reduce  green  house  gas  emissions  from 
agriculture and forestry activities, while enhancing sequestration of carbon in soils. 

1.3.1.3.  Livestock production 

Food demand is expected to increase by 70% by 205041 and many of today's food production 
systems  already  compromise  the  capacity  of  the  planet  to  produce  sufficient  future  food 
supplies.  Meat  consumption,  for  example,  in  both  the  developed  and  developing  world,  is 
projected  to  double  from  the  229  million  tonnes  produced  worldwide  in  1999/2001  to  465 
million tonnes in 205042. In the future, livestock production will increasingly be affected by 
competition  for  natural  resources  particularly  land  and  water,  by  the  need  to  reduce  fossil 
energy  dependency  and  environmental  impact,  and  by  societal  concerns  concerning  animal 
welfare.  

Developments in breeding, nutrition, and animal health will contribute to increasing potential 
production  and  further  efficiency  and  genetic  gains.  In  this  respect  the  tools  of  molecular 
genetics could have considerable impact, in particular marker assisted selection for traits that 
are  difficult  to  measure,  such  as  meat  quality  and  disease  resistance.  The  availability  of 
increasingly annotated genome sequences of most livestock species and the decreasing price 
for  sequencing  offer  unprecedented  opportunities  for  advances  in  evolutionary  biology, 
animal  breeding  and  animal  models  for  human  diseases.  For  instance,  genomic  selection 
should be able to significantly improve different production traits in the cattle industry, such 
asfeed efficiency and disease resistance. Livestock breeding will need to check that selection 
for certain traits (e.g. productivity) are not made at the expenses of other traits (e.g. fertility, 
welfare).  In  parallel,  the  preservation  of  farm  animal  genetic  resources  will  be  critical  for 
ensuring that livestock systems can adapt to climate change and other challenges. Indeed, the 
objective should be to rear the optimal animal for a defined production system with fine-tuned 
management  support.  Therefore,  the  whole  spectrum  of  production  systems,  from  the 
extensive,  low  input,  organic  ones  to  the  intensive  indoor  systems  will  equally  require 
attention. 

1.3.1.4.  Forestry 

The  EU  has  a  total  forest  area  of  approximately  177  million  ha  (around  40%  of  the  EU 
territory), of which 130 million ha are available for wood supply43 and the production of non-
wood goods and services (cork, resins, berries, mushroom, hunting for example). The forest-
based industries are a very important EU economic sector (woodworking industries, pulp and 

41 

42 
43 

The  3rd  SCAR  Foresight  Exercise;  Sustainable  food  consumption  and  production  in  a  resource-
constrained world, Standing Committee on Agricultural Research (SCAR), February 2011 
FAO (2006) Livestock's Long Shadow  
Directorate-General for Agriculture and Rural Development: 
http://ec.europa.eu/agriculture/fore/index_en.htm 

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paper,  printing  industries),  with  a  production  value  of  €  365  billion,  and  an  added  value  of 
around € 120 billion created by more than 3 million jobs 44.  

Forests play a crucial role in the global carbon cycle and the fight against climate change. The 
demand for wood, and for wood fuel in the context of increasing renewable energy demand, is 
a  strong  stimulus  for  increasing  forest  growth  and  productivity  and  for  improving 
management  practices  more  wood  and  residues  could  be  harvested  and  mobilised  while 
demand for forest products is growing for material and energy uses as a way to reduce carbon 
emissions  by  substituting  products  that  cause  higher  emissions.  However,  increased  harvest 
reduce carbon sinks. There is a need for speeding up production rates and developing forest 
raw  materials  with  new  properties.  Forests  of  the  future  will  be  increasingly  dedicated  to 
producing fibres, timber, energy or customised needs, which will have considerable impacts 
on the provisioning of a broad range of public goods.  

Forests serve multiple and interrelated social, economic and environmental functions. Besides 
providing  jobs,  income  and  raw  material  to  industry,  forests  contribute  to  soil  fertility  and 
prevent soil erosion, mostly by limiting runoff and lowering wind speed. They also regulate 
and  purify  freshwater  supplies,  and  act  as  a  water  buffer,  reducing  flooding.  In  addition, 
forests  act  as  carbon  sinks  thus  contributing  to  the  mitigation  of  climate  change  and  as 
significant  carbon  stocks,  that  are  important  to  protect.  They  conserve  biodiversity,  protect 
against landslides and avalanches, and provide recreation, vibrant rural landscapes, and a wide 
range  of  commercial  non-wood  products.  An  important  goal  is  to  mobilise  more  wood  in 
appropriate areas while safeguarding biodiversity and other public goods delivered by forests. 

1.3.1.5.  Policies and public goods 

Agriculture  and  forestry  are  unique  systems  delivering  commercial  products  but  also  wider 
non-marketed  ecological  and  societal  public  goods.  Research  will  address  these  manifold 
roles  and  explore  their  non-market  value,  thus  supporting  the  provision  of  important  non-
material  benefits  to  society  (landscapes  and  recreation)  as  well  as  of  ecological  goods  and 
services  (functional  and  in-situ  biodiversity,  pollination,  prevention  of  nutrient  leaching, 
enhanced  carbon  sequestration,  water  and  climate  regulation,  control  of  soil  erosion). 
Research  will  provide  the  necessary  tools  to  policy  makers  and  other  actors  to  support  the 
implementation  and  monitoring  of  relevant  strategies,  policies  and  legislation  to  prevent 
perverse  effects  by  correcting  for  externalities  and  to  encourage  synergistic  outcomes. 
Research  will  include  socio-economic  and  cost-benefit  analysis,  support  to  cross-sectoral 
agro-meteorological  models  for  short-term  harvest  forecasts  linking  to  climate  change 
modelling  as  well  as  comparative  assessment  of  farming  systems,  including  aspects  of 
multifunctionality  and  interactions  with  forestry,  in  addition  to  an  analysis  of  long  term 
developments and potentials to guide long-term decisions. 

1.3.1.6.  Agricultural advisory and support services, extension services 

innovators,  researchers,  and  biotechnologists  and 

Many recent reports have all identified an information and knowledge transfer gap that exists 
between 
the  farming  community. 
Transferring the latest research results, best practice approaches and improved methodologies, 
including  biotechnological  advances,  to  the  farming  community,  is  key  to  advancing 
agricultural productivity while limiting environmental impacts. Organised exchanges through 

44 

COM(2008) 113 final  

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re-constituted  extension  services  must  be  put  in  place  together  with  instruments  and 
mechanisms  to  make  knowledge  transfer  more  efficient  at  the  European  scale,  such  as  the 
European Innovation Partnership (EIP) for "Agricultural productivity and sustainability". 

A  specialised  support  infrastructure  for  SMEs  across  the  EU  would  be  beneficial.  It  could 
advise  interested  stakeholders,  for  instance  on  strategic  use  of  instruments  (e.g.  standards, 
labels,  certificates),  and  assist  with  specific  sustainability  tools,  access  to  demonstration, 
testing and certification facilities, or mediate investments.  

Finally,  it  will  be  necessary  to  support  pilot  and  demonstration  activities  for  up-scaling  of 
practices  and  processes.  Increased  investments  into  demonstration  plants  and  actions  will 
therefore be needed. 

1.3.2.  Fisheries and aquaculture 

The  maritime  sector  accounts  for  nearly  5  million  jobs  in  Europe,  of  which  20%  are  in 
fisheries,  aquaculture  and  food  processing45.  The  sustainable  management  of  fisheries, 
combined  with  the  competitive  development  of  EU  aquaculture  and  seafood  processing 
industry,  are  key  issues  for  supplying  quality  and  safety  seafood  to  European  citizens  and 
supporting livelihoods in European coastal areas. While these activities mainly fall under the 
Common  Fisheries  Policy  (CFP),  the  Integrated  Maritime  Policy  (IMP),  the  Water 
Framework  Directive  (WFD)  and  the  Marine  Strategy  Framework  Directive  (MSFD),  they 
also  form  the  “marine  pillar”  of  the  bioeconomy.  Marine  biotechnologies  are  estimated  to 
grow at a rate of 12% per year with a current global market of € 2.4 billion 46. The added value 
of the bioeconomy approach to these issues is the potential, through research and innovation, 
to  address  aquatic  living  resources  on  a  broad  sense:  fisheries  management;  aquaculture 
development;  food  waste;  by-products;  seafood  safety;  and  “blue  biotechnologies”  for  food 
and non-food use.  

Seas and oceans provide a vital contribution to the Europe 2020 goal of smart sustainable and 
inclusive  growth.  But  they  also  represent  a  largely  unknown  territory,  changing  rapidly 
through a combination of human and natural pressures (including climate change), which will 
have major implications for our health, our well-being, food and energy supply. To conquer 
this  new frontier,  advanced knowledge  on  marine living resources is necessary to maximise 
its  exploitable  value  in  a  sustainable  way,  optimise  the  response  to  climate  change  and 
mitigate human impacts on the marine environment as well as ensuring a Good Environment 
Status (GES) of EU waters by 202047 and optimising the planning of marine space.  

Exploring  seas  and  oceans  and  making  the  most  of  our  aquatic  resources  are  research 
challenges of considerable complexity with an important socio-economic dimension. Horizon 
2020 should support multidisciplinary collaborative research as well as large cross-cutting and 
technological  actions  between  marine  and  maritime  research  addressed  in  different  major 
societal challenges e.g. resources efficiency, transport, energy, food security and bioeconomy 
in  order  to  boost  innovation  and  stimulate  exchanges  and  complementarities  between  the 
marine  and  maritime  sectors.  The  Bioeconomy  Strategy  will  contribute  to  strengthening 
synergies at European level and within regional seas as well as improving scientific advice to 

45 

46 
47 

ECOTEC  Research  &  Consulting  (2006)  An  exhaustive  analysis  of  employment  trends  in  all  sectors 
related to sea or using sea resources 
COM(2008) 534 
Directive 2008/56/EC 

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support relevant policies (e.g. CFP, IMP, MSFD, WFD etc) in line with "Innovation Europe" 
and "Resource Efficient Europe" flagships. 

1.3.2.1.  Sustainable fisheries 

The economic and social viability of fisheries can only result from restoring the productivity 
of fish stocks. It is then necessary to rebuild European fisheries resources by maximizing their 
sustainable  yield  as  targeted  in  the  latest  reform  of  the  CFP.  This  will  require  developing 
research  in  order  to  improve  scientific  knowledge  and  innovation  for  supporting  a  robust 
decision making, the move towards an ecosystem  approach and the necessary fishery sector 
adaptation.  A  comprehensive  research  effort  should  also  target  innovative  solutions  for  the 
"greening"  of  the  fisheries  sector  by  reducing  its  ecological  footprint  on  the  marine 
ecosystems,  including  reducing  discards  and  wastes  and  making  the  best  use  of  by-catches. 
Fisheries rely directly on the productivity and health of aquatic ecosystems, which are under 
increasing pressures, including impact from other sectors and conflicting claims for the use of 
maritime  space.  Fisheries  related  research  shall  therefore  address  how  marine  ecosystems 
function,  what  constitutes  healthy  and  productive  marine  ecosystems,  and  how  one  can 
develop harvest strategies which ensure services to society while maintaining the integrity of 
the ecosystems. 

1.3.2.2.  Sustainable aquaculture 

The huge potential for the development of a competitive European aquaculture sector should 
be supported by strengthening the knowledge base for the sustainable exploitation of aquatic 
biodiversity (fish, shellfish, micro and macro algae etc) through farming, taking into account 
the existing legal framework, the interactions with the environment (including environmental 
services),  as  well  as,  the  social  and  economic  dimensions  of  aquaculture,  including  the 
competition in  the global  markets  and  the  consumer  needs.  As the  coastline  is getting more 
crowded  with  growing  population  and  diverse  economic  activities  competing  for  the  use  of 
the  maritime  space,  there  is  a  strong  drive  to  move  activities  further  off-shore  which  poses 
considerable challenges both from a technological and spatial planning perspective. It can be 
expected  that  applications  from  blue  biotechnology  will  contribute  to  the  production  of 
sustainable  and  healthy  aquaculture  products  by  ensuring  better  control  of  reproduction 
processes, developing innovative methods for selective breeding, feed ingredient optimisation 
and  industrial  processing,  health  and  welfare  monitoring,  disease  control  and  mitigation, 
preservation and bioremediation of aquatic ecosystems, energy production.  

1.3.2.3.  Marine biotechnology 

New innovative products and services could be brought to the markets by promoting further 
exploration  of  marine  biodiversity  and  strengthening  marine  biotechnology.  Components 
derived  from  marine  organisms  through  biotechnology  are  already  being  used  in  food, 
pharmaceutical, cosmetic and chemical industries. The unexploited potential of the sea is even 
bigger  since  more  than  90%  of  marine  biodiversity  remains  unexplored,  offering  a  huge 
potential for discovery of new species and applications derived from biotechnologies, which 
is foreseen to generate a 10% annual growth for this sector.  

1.3.3.  Bio-based industries 

Bio-based  industries  are  industries,  which  either  use  renewable  resources  and/or  apply  bio-
based  processes  in  their  production  processes.  Europe  has  a  number  of  well-established 

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traditional bio-based industries, ranging from the food, pulp and paper and other forest-based 
industries,  starch  and  biotechnology  to  the  chemical,  eco-  and  energy  industries.  The 
European  chemical  industry  employs  almost  1.2  million  people  in  the  EU  and  directly 
accounts for 1.1% of the total EU GDP; it is the manufacturing sector with the highest value 
added  per  employee48.  The  EU’s  eco-industry  has  a  turnover  of  about  €  319  billion 49  and 
employs more than 3.4 million people50. The European energy sector has an annual turnover 
of almost € 900 billion and employs over 1.2 million people 51. Today, only a small fraction of 
these industries are part of the bioeconomy, however, these are likely to gain significantly in 
importance  in  the  future:  the  OECD  estimates  that  biotechnology's  share  of  all  chemical 
production alone is likely to increase from less than 2% in 2005 to 25% in 202552. 

Significant increase in economic activity is expected to arise from the innovation potential of 
industrial biotechnology and biorefineries, which provide the opportunity to develop new bio-
based  industries,  transform  existing  ones,  and  open  new  markets  for  bio-based  products. 
Estimates foresee that industrial and plant biotechnology will overtake health biotechnology 
by 2030 and account for 75% of the total gross value added from the biotechnology sector53. 
While Europe's position in plant biotechnology is modest, it is still a world leader in the area 
of industrial biotechnology with about 70% of the world enzyme production54. It is therefore 
important for Europe to maintain its competitiveness in this sector and to foster interactions 
with other bio-based industries.  

To build a competitive and sustainable low emission society in the EU, it will be critical to 
provide stakeholders in these industries and along the entire bioeconomy value chain with a 
technological  toolbox  that  includes  a  range  of  Key  Enabling  Technologies  (KETs),  such  as 
biotechnology,  nanotechnology,  ICT  and  advanced  materials.  The  Bioeconomy  Strategy 
recognises  the  importance  of  the  KETs  for  opening  new  markets  to  established  and  rising 
industries  and  for  delivering  on  many  European  policy  objectives,  such  as  the  development 
and promotion of bio-based products under the Lead Markets Initiative55, the targets set by the 
Renewable Energy and Fuel Quality Directives56 and the Strategic Energy Technology (SET) 
plan57, as well as the objectives of the flagship initiative on "A Resource Efficient Europe". 
Furthermore,  the  Strategy  will  contribute  to  enhancing  the  availability  of  biomass  and 
biowaste at a competitive price without interfering with food security.  

1.3.3.1.  Biorefineries 

The concept of biorefineries is analogous to that of petrochemical refinery processes, which 
produce  a  wide  range  of  products  and  fuels  from  fossil  resources.  Biorefineries  aim  to 
produce multiple bio-based products and fuels using renewable resources as a carbon source 
and  bio-based  processes.  Ideally,  they  should  adapt  their  inputs  and  outputs  in  response  to 

48 
49 

50 
51 
52 
53 
54 

55 
56 
57 

Cefic (2011) Cefic European Facts and Figures  
Ecorys (2009) Study on the Competitiveness of the EU Eco-industry, prepared for Directorate-General 
Enterprise & Industry 
Ecorys (2011) Revision of Ecorys (2009) Study on the Competitiveness of the EU Eco-industry 
Eurostat (2009) Statistics in Focus 72/2009: Energy Sector in Europe 
OECD (2009) The Bioeconomy to 2030: Designing a Policy Agenda 
OECD (2009) The Bioeconomy to 2030: Designing a Policy Agenda 
SusChem  (2005)  Innovating  for  a  Better  Future:  Sustainable  Chemistry  Strategic  Research  Agenda 
2005 
COM(2007)860 
Directives 2009/28/EC and 2009/30/EC 
COM(2009)519 

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market  supply  of  different  types  of  biomass  and  wastes  and  to  the  demand  for  bio-based 
products, biofuels and bioenergy.  

Biorefineries should adopt a cascading approach to the use of their inputs, favouring highest 
value  added  and  resource  efficient  products,  such  as  bio-based  products  and  industrial 
materials,  over  bioenergy.  The  principle  of  cascading  use  is  based  on  single  or  multiple 
material  uses  followed  by  energy  use  through  burning  at  the  end  of  life  of  the  material, 
including taking into account the greenhouse gas emissions (GHG) mitigation potential 58. By-
products  and  wastes  from  one  production  process  are  used  to  feed  into  other  production 
processes  or  for  energy.  Biorefineries  can  thus  contribute  to  the  principles  of  a  "zero-waste 
society". 

The  biorefinery  concept  can  be  integrated  in  a  wide  range  of  environments,  ranging  from 
small-scale plants using agricultural residues in remote rural areas to large plants using waste 
from surrounding industries and municipalities in a symbiotic manner. The FP7 project Star-
COLIBRI  formulated  a  European  Biorefinery  Vision  for  2030  and  strategic  research 
recommendations for 2020. 

Pilot and demonstration activities 

In order to enhance the competitiveness and growth and maintain the leading role of European 
industries in the sector of biorefineries, it will be necessary to support pilot and demonstration 
activities  for  up-scaling  of  products  and  processes.  A  mapping  on  existing  biorefineries  at 
pilot plant or demonstrator scale in Europe59 has shown that there are a large number of pilot 
plants already, but only a very limited number of demonstrators. Increased investments into 
demonstration plants will therefore be needed, possibly through PPPs, financial instruments, 
regional funds, etc. 

Networks, clusters and logistics 

Supply of sufficient quantities of good quality renewable raw materials at a competitive price 
is critical for the success of biorefineries. A supply chain for feedstock needs to be developed 
across Europe that allows compensating fluctuations in one feedstock, by using another. This 
includes  improving  infrastructures  for  storage  and  transport,  and  developing  the  necessary 
logistics.  Cascading  use  of  biomass  should  be  possible  at  regional,  national  and  European 
level.  Supply  chain  and  logistics  should  be  linked  to  a  wide  network  of  integrated  and 
diversified biorefineries. Where appropriate, a cluster approach could be applied 

1.3.3.2.  Waste as an alternative biomass source 

Every  year,  more  than  300  million  tonnes  of  biodegradable  household  and  household-like 
wastes,  industrial  wastes  and  other  wastes  are  generated  in  the  EU  and  remain  largely 
unexploited. The bioeconomy offers a wide range of added value solutions for the prevention 
and management of biodegradable waste streams in line with the Waste Framework Directive 

58 

59 

Nova  Institute  (2010)  The  development  of  instruments  to  support  the  material  use  of  renewable 
materials in Germany (Summary) 
FP7  project  Star-COLIBRI  (2010)  http://www.star-colibri.eu/files/files/Deliverables/D2.3.1-Mapping-
of-Research-Projects-main-report.pdf 

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(WFD)60. The Directive includes the use of by-products and secondary raw materials, but not 
that of agricultural and forestry residues. 

Many  sectors  are  starting  to  recognise  the  potential  economic  value  of  biodegradable  waste 
(e.g. the agricultural, chemical and energy sectors). For certain types of biodegradable wastes, 
too  many  sectors  are  already  competing  for  a  limited  resource,  for  example  in  the  pulp  and 
paper industry. At the same time, differences in national implementation of waste legislation 
(e.g. on landfilling) and in the classification of certain waste streams exclude many of them 
from  being  used  for  biotechnological  conversion,  e.g.  wood  from  construction/demolition 
sites, animal by-products, composts, etc. While protecting human health and the environment 
should always be a priority when exploring potential uses of waste, end-of-waste criteria that 
could make restricted wastes more accessible for re-use need to be considered.  

Using waste efficiently 

As  with  biomass,  waste  may  not  always  be  directed  to  the  most  efficient  and  highest  value 
uses. Life cycle thinking and prospective studies will be critical in determining which use of a 
waste  will  be  the  most  efficient  in  a  given  context.  It  will  assist  in  assigning  a  waste  to  its 
optimal use through a cascading approach in line with the waste hierarchy of the WFD (e.g. 
measuring  the  added  value  of  bio-based  products  against  that  of  biofuels  and  incineration), 
but  also  to  justify  any  deviation  from  this  waste  hierarchy  (e.g.  when  distance  makes 
transforming a waste into biofuel or energy more efficient than other uses).  

Guidance  on  the  development  of  life  cycle  thinking  in  bio-waste  management  is  being 
developed by the Joint Research Centre (JRC) and the Directorate-General for Environment. 
This  initiative  should  be  extended  to  other  waste  streams  that  could  undergo  biological 
transformation  in  order  to  ensure  their  optimal  use.  It  should also  take  into  account  factors, 
such as waste fluctuations, logistics and transport.  

Future waste streams 

While  priority  should  be  given  to  investigating  major  existing  waste  streams  and  their 
potential uses, it will also be important to anticipate, which biodegradable waste streams are 
likely  to  gain  significant  volumes  in  the  future  (e.g.  bioplastics)  and  to  predict  future  waste 
streams.  Life  cycle  thinking  should  be  an  intrinsic  part  of  any  product  development. 
Furthermore,  the  likely  shifts  in  waste  and  by-product  quantities  and  distributions  as  a 
consequence  of  the  waste  hierarchy  implementation  should  be  assessed  in  future  scenarios 
and  associated  socio-economic  and  environmental  assessments.  Some  work  on  the 
environmental impacts associated to Member States' waste management systems is ongoing at 
the JRC for the Directorate-General for Environment. 

1.3.3.3.  Biotechnologies 

Industrial  biotechnology  can  contribute  to  making  production  processes  more  resource 
efficient  and  environmentally  friendly.  Bio-based  processes  can  substitute  individual 
production steps or entire production processes. They convert carbon sources more efficiently 
(both  fossil  and  renewable),  use  less  solvents  and  have  a  lower  water  and  energy  intensity, 

60 

Directive 2008/98/EC 

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which also results in significant cost savings. Bio-based processes in some cases can be used 
to eliminate or substitute process steps involving particularly hazardous substances61.  

Environmental  biotechnology  can  contribute  to  the  development  of  more  sustainable  bio-
based  products  and  processes  and  the  cleaning  and  preventing  environmental  pollution, 
including hazardous substances (e.g. through bioremediation and biological water treatment). 

Synthetic  biology  is  highly  likely  to  influence  a  wide  range  of  areas  of  our  economy  and 
society.  Designing  and  constructing  artificial  micro-organisms  for  a  given  application  could 
have  a  huge  potential  for  biotechnological  applications,  such  as  protein  design  and 
production, metabolic engineering, carbon fixation, biomass production, biocatalysis, biofuels 
and bioremediation. 

Systems  biology  aims  to  understand  the  operation  of  biological  systems  rather  than  its 
component  parts.  Combined  with  systems  engineering  it  can  assist  product  and  process 
development, for example through virtual or in silico set-ups that predict process conditions. 
This reduces the need for experiments and saves cost and time. 

Nanobiotechnology  develops  nanotechnology  products  with  the  basic  components  of 
biomolecules and living cells. This provides innovative scientific and technical approaches to 
address  existing  or  to  create  new  applications,  especially  in  the  area  of  biocatalysis,  which 
will  contribute  to  the  development  of  innovative  and  cost-efficient  bio-based  products  and 
solutions. 

1.3.3.4.  Bio-based products  

Bio-based products are wholly or partly derived from materials of biological origin, excluding 
materials  embedded  in  geological  formations  and/or  fossilised62.  The  advantages  of  these 
products  over  conventional  products  range  from  more  sustainable  production  processes,  to 
improved  functionalities  (e.g.  enzyme-based  detergents  that  work  more  efficiently  at  lower 
temperatures,  save  energy  and  replace  phosphorus)  and  characteristics  (e.g.  better 
biodegradability, lower toxicity).  

Standardisation and certification  

The  EU  is  taking  an  active  role  in  driving  the  development  of  clear  and  unambiguous 
standards  for  bio-based  products  at  European  and  international  level  (e.g.  on  bio-based 
content,  biodegradability,  sustainability  and  functionalities)  and  ensure  their  consistency 
across sectors. Standards are also central for the development of labels for bio-based products.  

To be comparable and reliable, sustainability assessments for bio-based products need to be 
standardised  and  be  certifiable.  Sustainability  criteria  for  bio-based  products  and  biofuels 
should be comparable and take into account factors, such as the calculation of GHG emissions 
and criteria for sustainable biomass production. Life cycle assessments (LCAs) can contribute 
to  improving  the  sustainability  of  products  and  processes.  They  should  be  clear,  objective, 

61 
62 

Regulation (EC) 1907/2006 
Note:  This  definition  refers  to  the  well-known  short-cycle  of  carbon,  i.e.  the  life  cycle  of  biological 
materials (e.g. plants, algae, marine organisms, forestry, micro-organisms, animals and biological waste 
from  households,  agriculture,  animals  and  food/feed  production).  The  bio-based  product  is  normally 
characterised by the bio-based content. CEN- Report on Mandate M/429. 

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science-based,  easy  to  handle  and  implement63  and  do  not  add  significant  costs  to  the 
development  of  innovative  products  or  hinder  market  access  for  SMEs.  Guidance  on  good 
practice  in  LCAs  is  being  prepared  by  the  JRC.  The  LCA  approach  is  also  being  further 
developed  towards  a  sustainability  assessment  in  the  FP7-funded  PROSUITE64  and  Global-
Bio-Pact65 projects. 

Labelling  

Labelling  can  play  an  important  role  for  the  commercialisation of  bio-based  products.  They 
provide consumers with clear information on the environmental performance of the products 
and guide their purchasing behaviour towards sustainable choices. Labels can also be critical 
for the uptake of bio-based products by green public procurement.  

In view of the proliferation of national and international labelling schemes, there are benefits 
in  associating  bio-based  products  to  a  successful  existing  scheme  with  a  harmonised  and 
standardised approach across the EU, such as the European Ecolabel66. Although its criteria 
are not fully congruent with those of a sustainability assessment under the European industrial 
policy,  it  already  includes  products  with  renewable  carbon  content  under  various  product 
groups (e.g. lubricants and detergents). Creating additional product groups covering bio-based 
products  could  be  considered,  as  well  as  the  further  development  and  improvement  of  the 
Ecolabel criteria. 

Advisory and support services 

Bio-based  products  create  entirely  new  markets  or  enter  markets  dominated  by  well-
established petro-chemicals suppliers. This implies specific challenges both for start-ups and 
mature companies wanting to enter a bio-based market either as a supplier or a customer.  

A  specialised  support  infrastructure  for  SMEs  across  the  EU  would  be  beneficial.  It  could 
advise  interested  stakeholders  on  the  strategic  use  of  instruments  (e.g.  standards,  labels, 
certificates)  and  assist  with  specific  LCA  and  sustainability  tools,  bio-based  eco-design 
aspects,  access  to  demonstration,  testing  and  certification  facilities,  or  mediate  investments. 
An EU wide approach bringing together suppliers and potential users downstream in the bio-
based  products  value  chain  would  increase  chances  to  alleviate  market  failures  and  earn 
societal  benefits  earlier,  contributing  to  a  lead  market  advantage.  The  BIOCHEM  project67 
funded under the EU Competitiveness and Innovation Programme (CIP) serves as a pilot for 
such services.  

1.3.4.  Food chain 

With a turnover of € 954 billion, and 4.2 m illion people employed in over 310,000 companies, 
the food and drink industry is the EU’s single largest manufacturing sector. SMEs represent 
99.1%  of  food  and  drink  companies  and  generate  almost  half  of  the  industry's  turnover.  In 

63 

64 
65 
66 
67 

Ad-hoc Advisory Group for Bio-based Products in the framework of the European Commission’s Lead 
Market  Initiative  (2009)  Taking  bio-based  from  promise  to  market:  Measures  to  promote  the  market 
introduction of innovative bio-based products. 
FP7 project PROSUITE: http://www.prosuite.org/ 
FP7 project Global-Bio-Pact: http://www.globalbiopact.eu/ 
Directorate-General for Environment: http://www.ecolabel.eu 
CIP project BIOCHEM: http://www.europe-innova.eu/web/guest/eco-innovation/eco-innovation-
platform/biochem/about 

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terms  of  turnover,  R&D  expenditure  is  quite  low  at  0.37%  -  the  lowest  of  developed 
countries.68  

The  combined  pressures  of  an  ever-increasing  global  population,  climate  change  impacts, 
limited natural resources, complex socio-economic and culturally influenced dietary choices 
and an increasing demand for meat, pose significant and unprecedented challenges in ensuring 
future food security and safety. Over recent years, food consumer retail prices have risen at a 
higher  inflation  rate  than  all  other  items  and  the  prices  of  agricultural  commodities  have 
shown an extreme volatility.69 

The central goal of the Commission's food safety policy is to ensure a high level of protection 
of  human  health  and  consumers'  interests  in  relation  to  food,  taking  into  account  diversity, 
including traditional products, whilst ensuring the effective functioning of the internal market. 
The  White  Paper  on  Food  Safety70  provides  guiding  principles  for  applying  an  integrated 
approach from farm to table covering all sectors of the food chain, including feed production, 
primary  production,  food  processing,  storage,  transport  and  retail  sale.Over  the  last  three 
decades obesity levels in the EU have risen dramatically, particularly among children. This is 
indicative of a worsening trend in poor diets and low physical activity levels across the EU 
population  which  can  be  expected,  in  turn,  to  increase  future  levels  of  a  number  of  chronic 
conditions. In the long term, this will result in a negative impact on life expectancy in the EU, 
and a reduced quality of life for many. Tackling this important public health issue entails the 
integration  of  policies  across  the  board;  from  food  and  consumer,  to  sport,  education  and 
transport. The Bioeconomy Strategy sets out concrete actions to help ensure that consumers 
have access to sufficient, safe, nutritious and affordable food at all times while decreasing the 
burden  of  diet-related  diseases,  including  obesity  by  promoting  healthier  diets  and  by 
facilitating sustainable and value-based consumption patterns. 

1.3.4.1.  Resource efficiency 

The food industry is a very large consumer of water, energy and packaging materials. Water is 
used  throughout  the  processing  chain,  not  only  as  an  ingredient,  but  also  in  processing  for 
cleaning, heating and cooling. Reductions in water usage by up to 20 % in Europe should be 
achievable  by  improving  the  efficiency  of  existing  processes  and  by  applying  new 
technologies  and  processing  methods.  Likewise,  a  more  efficient  use  of  energy  in  food 
processing, transport and distribution will increase the industry's competitiveness by lowering 
costs and have a positive impact on the environment. Alongside improvements to traditional 
processes, new technologies should be applied more widely and novel technologies should be 
developed in order to maximise recycling and minimise energy usage and waste at all stages 
of the food supply chain.  

1.3.4.2.  Food waste 

An estimated 90 million tonnes of food, (approximately 180 kg per capita) goes to waste in 
Europe  each  year,  with  up  to  80%  of  that  waste  coming  from  the  manufacturing  and 
household  sectors  alone71.  Worldwide,  approximately  1.3  billion  tonnes  or  one  third  of  all 

68 
69 
70 
71 

CIAA (2011) Data & trends of the European Food and Drink Industry 2010. 
CIAA (2011) Data & trends of the European Food and Drink Industry 2010. 
Com(1999)719 final 
Bio Intelligence Service (2010) Preparatory Study on Food waste across EU 27. DG ENV, 2009 

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food  produced  for  human  consumption  is  lost  or  wasted  annually72.  Food  waste  also 
contributes to global carbon emissions and is ethically unjustifiable in a world where close to 
1 billion people remain undernourished. Urgent, global and integrated measures are urgently 
needed  to  prevent  avoidable  food  waste  together  with  strong  public  engagement  as  a 
prerequisite in moving towards sustainable and equitable food systems.  

The Commission is already addressing the issue actively and is cooperating closely with all 
relevant  stakeholders  to  explore  how  to  minimise  food  waste.  It  works  with  retailers  in  the 
framework of the EU Retail Forum on sustainability, with the EU Sustainable Consumption 
and Production Food Round Table, with the High Level Forum for a Better Functioning Food 
Supply Chain and with the Member States. Food waste is also a topic under analysis by the 
Commission and other EU members of the OECD, in the context of the recently formed Food 
Chain Analysis Network. The forthcoming proposals for the reform of the Common Fisheries 
Policy will also address the issue of eliminating discards of edible fish. 

It is essential that consumers are provided with the information necessary to enable them to 
make informed choices and to avoid throwing away food that is still edible. Current education 
and consumer education tools such as The Europa Diary73 and Dolceta74 touch already upon 
the  reduction  of  food  wastage  and  the  European  Commission  is  currently  undertaking  an 
evaluation of its consumer education actions although further actions are still urgently needed.  

1.3.4.3.  Packaging  

Food packaging plays a critical role in ensuring food safety, enhancing shelf-life, preserving 
taste, protecting goods, providing information to consumers and providing convenient portion 
sizes  but  also  generates  large  quantities  of  waste  and  poses  a  significant  environmental 
burden.  The  development  of  new,  biodegradable,  thinner  and/or  lighter  packaging  materials 
that can be fully re-used, recycled or recovered as energy sources, while ensuring food safety, 
are urgently needed in order reduce heavy environmental footprint currently brought to bear. 
While  sustainable  packaging  must  be  considered  against  the  background  of  food  safety  and 
economic  sustainability,  innovative  advances  in  this  field  would  have  significant  positive 
impacts on the competitiveness of the European food and packaging industries while paying a 
key role in reducing environmental impacts of this sector  

1.3.4.4.  Food safety 

Over  recent  years  there  has  been  an  alarming  increase  in  food  safety  incidents  which  have 
increased  consumer  concern  worldwide.  In  industrialised  countries,  the  percentage  of  the 
population suffering from food borne diseases each year has been reported to be up to 30%. In 
the USA, around 76 million cases of food borne diseases, resulting in 325,000 hospitalisations 
and 5,000 deaths, are estimated to occur each year75. Complex food production chains and the 
globalisation  of  food  markets  have  further  increased  potential  food  safety  risks.  The  very 
heavy  socio-economic  burden  caused  can  not  be  underestimated  and,  in  light  of  increasing 
food demand, is likely to increase in the short-term. Innovative approaches, integrated policy 
developments  and  further  investment  in  research  and  innovation  aimed  at  enhancing  food 

72 

73 
74 
75 

Global Losses and Food Waste (2011) Gustavsson, J., Cederberg, C.,Sonesson, U. Swedish Institute for 
Food and Biotechnology, Gothenburg Sweden – Report commissioned by the FAO  
The Europa Diary: http://ec.europa.eu/consumers/europadiary/docs/europa_diary_uk.pdf 
Dolceta: http://www.dolceta.eu/ 
WHO Fact Sheet N° 237, March 2007  

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safety, from production to consumption, are urgently needed. Research and innovation should 
also address the social aspects of the seafood sector which is essential for the cohesion of the 
social tissue in European coastal areas. 

It will be essential that "fit-for-purpose" and effective food safety regulations are in place to 
protect  consumers  and  consumer  confidence  while  ensuring  food  safety  and  reducing 
wastage. Measures should be taken to reduce, where possible, mitigate the cost of compliance 
with regulation and the possible negative effects of compliance on innovation should also be 
carefully assessed and reviewed.  

1.3.4.5.  Nutrition and dietary choices 

Adequate nutrition is fundamental for normal growth and development, health, prevention of 
disability and disease and well-being. In Europe, the burden of disease due to poor nutrition is 
related primarily to food choices that lead to the excessive intake of energy-dense, nutrient-
poor foods.  

There is a need for more dialogue between governments, public health groups and industry in 
raising consumer awareness of the link between food and health, and in creating incentives for 
informed food choices. This includes possible reformulation programmes to reduce nutrients 
associated with health risks, including sodium, sugar, saturated fat and energy, and increasing 
the fibre, wholegrain, fruit and vegetable content of commonly consumed processed and pre-
prepared foods. These activities should be supported by strategies to standardise and reduce 
portion  sizes.  Consumer  demand  is  driven  by  readily  available,  affordable,  convenient  and 
safe  foods,  however  consumers  are  showing  an  increasing  interest  in  environmental  issues 
(where  and  how  food  is  produced,  transport  distances  including  carbon  printing)  and  social 
values (fair trade) which are increasingly influencing food purchasing decisions. 

Sustainable consumption patterns and healthy diets are key drivers for Europe’s growth and 
prosperity and the synergies between “healthy” and “environmentally friendly” food must be 
further explored at political level in Europe. Appropriate measures to improve the health of 
citizens,  when  acceptable  to  society  and  beneficial  to  the  environment,  can  result  in 
significant  environmental  and  socio-economic  benefits  as  well  as  improvements  in 
competitiveness. The food sector is currently experiencing an increasing demand for meat at 
the same time as a steady increase in the world population and ever increasing competition for 
resources.  The  transition  towards  increased  sustainability,  equitability  and  security  in  food 
supplies  will  need  to  reconcile  a  complex  range  of  factors  that  include  economic  viability, 
environmental protection together with societal needs and expectations.  

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2. 

THE BIOECONOMY ACTION PLAN FOR EUROPE

76 

The  Bioeconomy  Strategy  includes  a  set  of  objectives  and  actions  to  be  taken  at  EU  and  Member  States  levels.  This  accompanying  Staff  Working 
Document presents a detailed Action Plan whose implementation will allow meeting the objectives of the Strategy. The sub-actions of the action plan 
include, where relevant, the corresponding time frame, actors involved, and funding instrument to be used. The execution of some of these actions and 
sub-actions will require dedicated impact assessments. 

The detailed Action Plan  below describes the Commission's actions for the implementation of the Bioeconomy Strategy objectives, building on the 
Seventh Framework Programme for Research and Technological Development (FP7), Horizon 2020 and other relevant existing policy initiatives, such 
as the European Innovation Partnerships (EIPs). It also invites Member States and stakeholders to engage.  

2.1. 

Investment in research, innovation and skills 

N° 
A1 

A1.1 

A1.2 

A1.3 

76 
77 

78 

Timeframe77 

Actors78 

Action 
Ensure substantial EU and national funding as well as private investment and partnering for bioeconomy research and innovation. Develop further JPI 
and ERA-Net activities in order to strengthen coherence and synergies between public programmes. Support bioclusters and KICs under the EIT for 
partnering with the private sector. Outline the main research and innovation concepts and priorities for food, sustainable agriculture and forestry and for 
marine and maritime activities under Horizon 2020.  
Increase EU public funding for research and innovation related to the bioeconomy, with dedicated and enhanced efforts on 
food security, sustainable agriculture, forestry, fisheries and aquaculture, and bio-based industries (e.g. FP7 and Horizon 
2020). Encourage sufficient national public spending on bioeconomy research and development. 
Strengthen coherence and synergies between EU and national/regional programmes that support research and innovation 
relevant to the bioeconomy, through EIPs and specific public-public partnering initiatives (e.g. ERA-Nets, Joint 
Programming Initiatives). 
Boost the bio-sciences knowledge base, related emerging technologies and biological research infrastructures, through 
relevant activities in FP7 followed by Horizon 2020 “Excellent Science Base”. Support research and innovation to address 
bioeconomy-related challenges in FP7 and then Horizon 2020, particularly under “Food security, sustainable agriculture, 
marine and maritime research, and the bioeconomy” and parts of other relevant societal challenges. Establish close 
interactions among the respective activities in Horizon 2020.  

EU, MSs, 
Regional 
authorities 
EU  

Continuous: 
Short- to long-
term 

Short- to long-
term 

Short- to long-
term 

EU, MSs 

Note: Actions are not placed in a priority order 
In  the  context  of  the  detailed  action  plan,  and  if  not  specified  otherwise,  "short-term"  stands  for  2-3  years,  "medium-term"  for  5-6  years,  and  "long-term"  for  anything 
beyond 2020 
Acronyms used for different actors: 1) European Union (EU); 2) Member States (MSs)  

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Continuous: 
Short- to long-
term 
Continuous: 
Short- 
medium-term 
Short-term 

A1.4 

Cooperate with the EIT and relevant KICs in the area of the bioeconomy, including entrepreneurship promotion activities. 

EU 

A1.5 

A1.6 

A2 

A2.1 

A2.2 

A2.3 

A2.4 

A2.5 

A3 

A3.1 

A3.2 
A3.3 

A3.4 

Establish close interactions between the relevant parts in Horizon 2020 and other related EU programmes in areas such as 
education, technology and knowledge transfer and acquisition, competitiveness and SMEs, development aid as well as 
structural funds - Cohesion policy Funds, Rural Development funds, Regional funds, European Fisheries Funds, etc. 
Outline the main research and innovation concepts and priorities for sustainable agriculture and forestry and for marine and 
maritime activities under Horizon 2020. 
Increase the share of multi-disciplinary and cross-sectoral research and innovation in order to address the complexity and inter-connectedness of societal 
challenges by improving the existing knowledge-base and developing new technologies. Provide scientific advice for informed policy decisions on benefits 
and trade-offs of bioeconomy solutions. 
Continue the co-operation with and ensure the sustainability of European Technology Platforms relevant to the bioeconomy.  Continuous: 

EU  

EU 

EU 

to 

Short- to long-
term 
Continuous: 
Short- to long-
term 

Support knowledge acquisition and technology exchange, advisory and support services, cooperation and training 
opportunities among all actors of the supply chain and end-users of bioeconomy research and innovation, for example new 
businesses in the bio-based product market with particular attention to first users in applying sectors downstream in the 
value chain. Reinforce rural and coastal advisory services.  
Develop further an EU SME support infrastructure advising producers, businesses and stakeholders, for example on 
strategic use of instruments (e.g. standards, labels, certificates) and for assistance with specific sustainability tools, access to 
demonstration, testing and certification facilities, or mediate investments. 
Reinforce the dialogue between bioeconomy research and policy making and ensure EU funding of research in support to 
bioeconomy-related policies, in order to ensure that public research results provide a sound scientific basis and promote 
responsible political decisions. 
Boost the development of technologies related to bio-based industries and to the bioeconomy at large - including 
biotechnologies, nanotechnologies, ICT, advanced materials, manufacturing and processing - through FP7 and then Horizon 
2020 “Industrial Leadership and Competitive Frameworks”. 
Promote the uptake and diffusion of innovation in bioeconomy sectors and create further feedback mechanisms on regulations and policy measures where 
necessary. Expand support to knowledge networks, advisory and business support services, notably through EIPs and bioclusters. 
Identify barriers and work out solutions to promote the uptake if knowledge and innovation in different bioeconomy sectors.  Continuous: 

Short-term (2014)  EU, MSs, 
Industry  

Continuous: 
Short- to long-
term 

Continous: Short- 
to long-term 

EU, MSs 

EU, MSs 

EU  

Provide a level playing field for patent development and improve patent law related to the bioeconomy. 
Enhance the role of SMEs, primary producers and end customer servicing industries in the novel bioeconomy supply chains, 
in EU research and innovation programmes. Support "Innovation in SMEs" and provide "Access to risk finance" for 
innovative companies in the bioeconomy (Horizon 2020).  
Organise on an ad-hoc basis meetings of leading scientists, which will provide a platform for discussion and uptake of 

Short- to long-
term 
Medium-term 
Continuous: 
Short- to long-
term 
Continous: Short-  EU 

EU, MSs 
EU 

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A4 

A4.1 

A4.2 

A4.3 

scientific evidence for policy making as well as for pointing out missing elements in the knowledge base.  
Build the human capacity required to support the growth and further integration of bioeconomy sectors by organising university fora for the development 
of new bioeconomy curricula and vocational training schemes. 
Promote  EU  talented  researchers  training,  mobility,  career  development  and  exchange  opportunities  and  enhance  the 
development of an open European market for researchers across borders and public and private sectors in the bioeconomy 
areas.  Increase  the  role  and  visibility  of  Marie  Curie  Actions  (FP7  and  Horizon  2020)  and  the  European  Research  Area 
(ERA).  
Stimulate the development of bioeconomy skills in higher education by encouraging interaction with bioeconomy sectors, 
creating more academic posts in relevant scientific and technological disciplines, adjusting higher education curricula, and 
providing  realistic  prospects  and  career  opportunities.  Where  appropriate  consider  financial  subsidies  or  other  incentives. 
Promote bio-literacy in school curricula. 
Establish a Life Science, Marine and Agricultural Universities Forum, to foster the development of the bioeconomy 
throughout academic excellence and networking in education, training and research. 

Continuous: 
Short- to long-
term 

Short- to 
medium-term 

Short- to 
medium-term 

to long-term 

EU, MSs 

EU  

EU 

2.2. 

Reinforced policy interaction and stakeholder engagement 

N° 
A5 

A5.1 

A5.2 

A5.3 

A5.4 

A6 

EN 

Actors 

Timeframe 

Action 
Create a Bioeconomy Panel that will contribute to enhancing synergies and coherence between policies, initiatives and economic sectors related to the 
bioeconomy at EU level, linking with existing mechanisms (by 2012). Encourage the creation of similar panels at Member State and regional level. Foster 
participation of researchers, end-users, policy-makers and civil society in an open and informed dialogue throughout the research and innovation process 
of the bioeconomy. Organise regular Bioeconomy Stakeholder Conferences. 
Establish  an  EU-wide  bioeconomy  interaction  system  to  strengthen  coherence  and  synergies  across  sectors,  policies  and 
activities, through a Bioeconomy Panel involving relevant European Commission services, Member States and stakeholders, 
and building where possible on existing structures.  
Engage  with  civil  society  and  promote  informed  public  debates  on  bioeconomy  issues,  research  and  innovation  activities 
and societal implications, through stakeholders discussion platforms involving scientists, entrepreneurs, policy makers and 
civil  society  at  large.  Organise  regular  Bioeconomy  Stakeholders  Conference  to  facilitate  and  promote  communication 
activities on a yearly basis at EU level from 2012-2017. Encourage similar conferences at national level. 
Improve availability and quality of information on bioeconomy products and processes, and on their socio, economic and 
environmental  impacts,  to  facilitate  informed  societal  choices.  Raise  awareness  with  and  involve  local  authorities  and 
stakeholders in the building of the bioeconomy and in reaching out to the general public. Promote "zero-waste" campaigns. 
Promote  further  stakeholders  involvement  in  the  discussion  of  research  priorities,  in  research  activities  and  uptake  of 
research results; promote best use of available scientific knowledge to underpin the development of national strategies and 
guidelines. 
Establish a Bioeconomy Observatory in close collaboration with existing information systems that allows the Commission to regularly assess the progress 
and impact of the bioeconomy and develop forward-looking and modelling tools (by 2012). Review progress and update the Strategy at mid-term. 

Continous: Short- 
to long-term 

Continous: Short- 
to long- term 

Short- to 
medium-term 

EU, MSs, 
EATIP 

Short-term 

EU, MSs 

EU, MSs 

EU, MSs 

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A6.1 

A6.2 

A6.3 

A7 

A7.1 

A7.2 

A8 

A8.1 

A8.2 

EU  

Continous: Short- 
to medium-term 

Establish  a  Bioeconomy  Observatory  to  follow  the  evolution  of  bioeconomy  markets  and  the  impacts  (socio-economic, 
scientific technological, market and legislation) of policies, where such mechanisms do not yet exist, as well as research and 
innovation activities affecting the bioeconomy in Europe and beyond.  
Support  existing  databases  and  develop  new  databases  and  indicators  for  bioeconomy  impacts  analyses,  EU  and  global 
models  integrating  economic  both  macro  and  sectors  levels,  environment,  technological  development  and  territorial 
dimensions.  
Link the system to a global monitoring system to follow the world-wide developments and impacts of the bioeconomy, with 
a  focus  on  strategic  third  countries  partners  and  also  to  guide  international  co-operation  strategies  (including  in  Horizon 
2020).  
Review  regularly  the  progress  and  delivery  of  EU  and  national/regional  bioeconomy  strategies,  including  research  and 
innovation by Horizon 2020.  
Produce regular foresights and forecasts and updates of ex-ante impacts assessments for the bioeconomy, contributing to 
policies' orientations as well as research and innovation directions. 
Contribute to the mapping of EU, national and regional bioeconomy policies, research and innovation capacities, activities 
and infrastructures, as well as public and private investments in research and innovation. Produce regularly Capacities 
Maps, Technology Maps, Policies Maps and Projects Maps for the bioeconomy in Europe.  
Support the development of regional and national bioeconomy strategies by providing a mapping of existing research and innovation activities, competence 
centres and infrastructures in the EU (by 2015). Support strategic discussions with authorities responsible for rural and coastal development and Cohesion 
Policy at local, regional and national level to maximise the impact of existing funding mechanisms.  
Contribute to national and regional bioeconomy strategies by supporting discussions with authorities responsible for rural 
and coastal development and Cohesion Policy.  

Continous: Short- 
to long-term 
Short- to 
medium-term 

Medium- to long-
term 

EU, MSs 

EU, MSs 

MSs 

Enhance short chain, local economic activities and urban-rural and coastal interlinkages to cater for the increasing demands 
for regional and diversified food and non-food products (e.g. through support in regional development programmes). 

Continous: Short- 
to long-term 

EU, MSs, 
Regional 
Authorities  

Develop international cooperation on bioeconomy research and innovation to jointly address global challenges, such as food security and climate change, 
as well as the issue of sustainable biomass supply (from 2012). Seek further synergies between the international cooperation efforts of the EU and Member 
States and reach out to international organisations.  
Foster international policy dialogues (including monitoring and foresight) and joint S&T international cooperation actions in 
the area of bioeconomy in Horizon 2020 research and innovation to efficiently address global challenges related to the 
bioeconomy, such as food security, sustainable agriculture and fisheries, and greening the industry. Continue work with 
established fora, such as the International Knowledge-Based-BioEconomy Forum, the EC-US Task Force on Biotechnology 
Research, etc. Contribute to the development of global standards for bioeconomy sectors.  
Promote international cooperation and synergies among R&I programmes related to the bioeconomy in the EU, Member 
States and strategic third countries, also through the expansion of existing fora such as the Strategic Forum for International 
Cooperation (SFIC). 

EU, strategic 
third countries 
partners 

Continous: Short- 
to long-term 

Continous: Short- 
to long-term 

EU, MSs, third 
countries 

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2.3. 

N° 

A9 

A9.1 

A9.2 

A9.3 
A9.4 
A9.5 

A9.6 

A9.7 

A9.8 

A10 

A10.1 

A10.2 

Enhancement of markets and competitiveness in bioeconomy sectors 

Action 

Timeframe 

Actors 

Provide the knowledge-base for sustainable intensification of primary production. Improve the understanding of current, potential and future availability 
and demand of biomass (including agricultural and forestry residues and waste) across sectors, taking into account added value, sustainability, soil fertility 
and climate mitigation potential. Make these findings available for the development and review of relevant policies. Support the future development of an 
agreed methodology for the calculation of environmental footprints, e.g. using life cycle assessments (LCAs). 
Develop tools to aggregate data on biomass and biowaste availability and their use in bio-based industries, bioenergy and 
food sectors in order to examine the use of available resources and the need for imports from third countries. Ensure that the 
developed knowledge base is communicated to the different sectors to revise the strategy if appropriate.  
Determine the sustainable biomass trading potential with third countries, taking into account the findings of the observatory 
to the GEOSS (Global Earth Observing System of Systems) of the Group on Earth Observations (GEO). 
Enhance the markets in Europe for quality biomass and waste to provide producers of bio-based products, biofuels and 
bioenergy with equal accessibility. 
Contribute to the development of an agreed methodology for the calculation of environmental footprints, e.g. using LCAs 
Develop the knowledge base for carbon balance and for assessment of sustainable uses of biomass 
Provide data, tools and models to examine potential trade-offs between various types of land uses in agriculture and increase 
capacity to analyse complex scenarios (e.g. on trade or food security versus biofuels issues) 
Support the development of appropriate diagnostic tools, reference material and coordination mechanisms to tackle 
quarantine pests along with support to relevant authorities 

EU, MSs, 
Industry  
EU 
EU 
EU 

Continous: Short- 
to long-term 

Medium-term 
Medium-term 

EU, MSs, 
Industry  

Medium-term 

Medium-term 

Provide extension services and farmers/foresters with (predictive) tools on pests and disease outbreaks as well as with 
comprehensive information on measures for integrated pest control  

Continous: Short- 
to long-term 

Improve the knowledge base for the implementation of policy actions under the Common Agricultural and Fisheries Policies 
(CAP and CFP), the Integrated Maritime Policy and many environmental (including biodiversity, resource efficiency and 
waste), industrial, employment, energy and health policies. 
Promote the setting up of networks with the required logistics for integrated and diversified biorefineries, demonstration and pilot plants across Europe, 
including  the  necessary  logistics  and  supply  chains  for  a  cascading  use  of  biomass  and  waste  streams.  Start  negotiations  to  establish  a  research  and 
innovation PPP for bio-based industries at European level (by 2013).  
Promote the launch of a public private initiative for bio-based industries involving research and innovation supporting the 
sustainable use of renewable resources for the production of bio-based products. It will embrace the entire value chain from 
crop  development,  biomass  production  and  collection  to  industrial  conversion  into  a  range  of  biobased  products,  notably 
biochemicals and biomaterials. 
Support the establishment of a network of diversified biorefineries across Europe, as well as the creation and networking of 
one  or  more  clusters  of  integrated  and  diversified  biorefineries  in  every  Member  State.  Assist  in  the  creation  of  supply 
chains and the necessary logistics for the cascading use of biomass and waste by the biorefinery networks and clusters. 

Short- to long-
term 

Short-term (2013)  EU 

Medium-term 

EU, MSs 

EU, National 
Plant Health 
Authorities 
EU, MSs, 
Regional and 
extension 
services 
EU, MSs 

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37 

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A11 

Support the expansion of new markets by developing standards and standardised sustainability assessment methodologies for bio-based products and food 
production systems and supporting scale-up activities. Facilitate green procurement for bio-based products by developing labels, an initial European 
product information list and specific trainings for public procurers. Contribute to the long-term competitiveness of bioeconomy sectors by putting in place 
incentives and mutual learning mechanisms for improved resource efficiency. 

A11.1  Contribute  to  the  development  of  methodological  standards  for  bio-based  products  (e.g.  using  LCAs)  with  regard  to,  e.g. 

Medium-term 

A11.2 

bio-based content, biodegradability and functionalities. 
Improve the accessibility to existing and invest into additional pilot plant infrastructures and activities in order to support the 
up-scaling of bio-based products and processes. Increase investments in demonstration infrastructures and activities in order 
to support the up-scaling of processes for the manufacturing of bio-based products.  

A11.3  Better integrate research projects with the use of pilot and demonstration activities and advice to further the development of 

new products, technologies and production systems ("Spread Best Practice") 

Medium-term 

Continous: Short- 
to long-term 

A11.4 

Develop the knowledge base for certification schemes and labels (e.g. Eco-label) for bio-based products in order to promote 
their uptake in consumer markets and green public procurement.  
Launch a study in 2013 to assess different labelling options for bio-based products, in particular whether bio-based products 
are adequately covered by existing EU labelling criteria (e.g. Eco-label) and possibly to create a bio-based product category 
if necessary. 

A11.5  Contribute  to  the  creation  of  an  initial  European  product  information  list  for  bio-based  products  to  promote  uptake  in 

consumer markets and green procurement. 

A11.6  Develop  new  technologies  and  processing  methods  aimed  at  reducing  both  energy  and  water  consumption  in  the  food 
processing industry. Stimulate the development of new, biodegradable, thinner and/or lighter packaging materials that only 
can be fully re-used, recycled or recovered as energy sources, while ensuring food safety. 

Medium-term 

Short-term 
(2013) 

Short-term 
(2013) 
Medium-term 

EU, 
CEN, ISO 
EU, MSs 

EU , MSs 
(through 
extension 
services)  
EU 

EU 

EU 

EU 

A11.7  Boost  the  development  of  innovative  production  systems,  products  and  services  deriving  from  the  exploitation  of  aquatic 

Medium-term 

EU, MSs 

living resources and the management of their environment to stimulate blue growth. 

A11.8  Develop  innovative  production  and  management  systems  and  technologies  to  improve  aquaculture  competitiveness  while 

Medium-term 

EU, MSs 

A11.9 

consolidating the position of the sector at the forefront of technological development. 
Explore  the  possibilities  of  more  demanding  process  and  efficiency  criteria  in  food  processing  and  manufacturing.  A 
consultation  forum  will  be  set-up  and  convene  during  2012/2013  to  deliberate  on  first  draft  implementing  measures  and 
possible self-regulatory initiatives. 

Medium-term 

EU, MSs 

A11.10  Provide the knowledge base for existing policy incentives (and if necessary for new policy initiatives, at both European and 

Medium-term 

EU, MSs 

national level) with a view to reducing food wastage in food production, storage, transport, distribution and households. 
Support scientific research for the development of novel processing systems for converting food waste by-products for soil 
fertility, climate change mitigation or into higher value end-products. 
Develop science-based approaches to inform consumers about product properties (e.g. nutritional benefits, production methods and environment 
sustainability) and to promote a healthy and sustainable lifestyle.  
Improve consumer awareness of healthier food choices in order to promote a dietary shift towards healthier diets and 

Medium-term 

EU, MSs 

38 

EN 

A12 

A12.1 

EN 

 
  
A12.2 

encourage sustainable consumption patterns across Europe.  
Promote research and innovation activities to further our understanding of the complex factors affecting food choices and 
their impact on the environment, and to develop new process technologies to enhance the functionality, quality and 
nutritional value of food and responding to consumers medical needs. 

Medium-term 

EU, MSs 

A12.3  Analyse new and existing policy and economic incentives to encourage industry to reformulate their products to reduce 

Medium-term 

EU, MSs 

A12.4 

nutrients associated with health risk, including sodium, sugar, saturated fat and energy, and to increase the fibre, wholegrain, 
fruit and vegetable content of commonly consumed processed and pre-prepared foods. 
Establish and communicate to the society scientific evidence about environmental and social services provided by 
agriculture and by fisheries and aquaculture, as well as evidence on positive effects of seafood consumption. 

Medium-term 

A12.5  Offer full transparency to authorities and consumers on the origin of seafood products "from net/cage to plate" and promote 

Medium-term 

EU 

EU 

the consumption of safe, nutritious and healthy European seafood. 

EN 

39 

EN 

 
  
Section B - Estimating the impact of EU level research funding 
and better policy interaction in Bioeconomy 

1. 

THE JUSTIFICATION FOR EU ACTION  

Europe  has  an  important  role  to  play  at  two  levels,  firstly  in  ensuring  necessary  policy 
coherence and enhancing market development in the bioeconomy sectors, but also facilitating 
the new knowledge and innovations that can loosen constraints and define a new frontier for 
the bioeconomy. The EU's right to act in Research and Innovation policies is set out in the 
Treaty on the Functioning of the European Union under Articles 179 to 181. Articles 38 to 44 
(for agriculture and fisheries), Article 173 (for the competitiveness of industry), and Articles 
191 to193 (for the environment) give basis to define a Strategy of interaction between these 
sectoral policies. 

1.1. 

A common view and a global answer for the main challenges 

The  bioeconomy  encompasses  sectors  of  the  economy  that  are  interrelated  across  the 
European geographical, economic, social, environment policy levels. It has become obvious 
in  the  recent  past  that  the  most  effective  way  to  address  new  global  issues  such  as  climate 
change, global trade, food security, energy security, is to build global answers for the main 
regions of the world. No one European country would be able to answer alone; no one sector 
can be isolated from the other interrelated ones. The EU policies of the Treaty, in particular 
for  agriculture,  research  and  the  environment,  particularly  climate  change,  have  a  direct 
interface with the bioeconomy. Interaction between these policies is necessary as is also the 
case for innovation and knowledge interrelations. 

The legitimacy of EU and Member States' intervention was strongly recognized in the public 
consultation  already  mentioned  in  this  Staff  Working  Document79.  93%  of  respondents 
agreed  that  action  is  needed  to  realise  the  potential  of  the  bioeconomy,  and  81  %  thought 
initiatives should be taken at both EU and national levels. 

1.2. 

Overall economic added value in a single market 

The benefits of the grand market and the elimination of institutional barriers as described in 
the  "Cecchini  report"80  apply  also  to  the  bioeconomy.  This  supposes  inter  alia  a 
standardisation of the specification of manufactured products, healthcare, food additives, and 
various  other  products.  A  grand  European  market  for  the  bioeconomy  will  provide  a  clear 
playing field for economic actors, and enterprises will be subject to greater competition and 
will  be  prone  to  invest  more  in  R&I  in  order  to  reduce  costs,  improve  product  quality  and 
develop new products to maintain market positions. Measures to reduce market failures will 
be  in  particular  significant  for  the  bioeconomy  because  its  activities  both  produce  and  are 
constrained by significant positive and negative externalities.  

79 

80 

Public consultation by the European Commission (open from 22 February to 2 May 2011) "Bio-based 
reports  available  at: 
future  potential".  Full 
state  of  play  and 
economy 
http://ec.europa.eu/research/bioeconomy/news-events/news/20110926_en.htm 
P Cecchini et al, (1988) The European Challenge 1992: the benefits of a single market 

in  Europe: 

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40 

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1.3. 

A stronger EU commitment 

Global and societal challenges need global answers and shared views. European Union has a 
long  tradition  of  organising  consensus  and  common  policies;  in  addition,  its  capacity  of 
promoting  scientific  knowledge  is  bigger  compared  to  individual  Member  States.  This  is 
particularly true for bioeconomy which represents an important part of the world trade; this 
theme  is  also  more  and  more  debated  in  the  international  conventions  or  initiatives  (food 
security,  climate,  development).  There  are  also  common  positions  to  take  at  the  EU  level. 
Better monitoring and policy interaction is useful at two levels: between Member States and 
European  Institutions;  between  stakeholders,  including  policy  making,  consumers,  industry, 
etc.  

1.4. 

The benefits of EU research and innovation 

Research and innovation can help to resolve some societal challenges; it can also advance the 
technological  frontier  as  defined  by  the  trade-offs  between  different  metrics  (costs, 
performance,  environmental  and  social  impacts).  The  bulk  of  research  in  bioeconomy  is 
implemented at a national level; but a European research policy, based on European funding 
is necessary; this conclusion follows from the application of the subsidiary principle.  

Secondly,  specific  characteristics  of  the  bioeconomy,  the  process  and  the  products  that  are 
concerned  also  indicate  an  important  role  for  Europe.  Some  aspects  of  the  bioeconomy 
represent  rather  “young”  research  activity  so  the  uncertainty  of  outcome  and  therefore  the 
risks are high and this impedes the necessary efforts; a common effort can reduce perceived 
risk.  A  European  effort  is  justified  thirdly  by  the  contribution  that  these  technologies  can 
make to the grand societal challenges identified as issues that require a European response. 
Lastly, the role of bio-technologies will be wide spread amongst all the productive activities; 
it  is  desirable  therefore  that  research  is  coherent  across  Europe  and  that  the  benefits  of 
“knowledge  spillovers”  are  maximized;  this  can  be  assisted  by  specific  European  level 
interventions.  

The integration of research and innovation at European level comprises: 

• 

• 

• 

Interaction  of  the  different  countries  research.  Avoidance  of  overlapping  and 
duplication of research; 

Increase of the spillovers of research and promotion of the transfer of best practices, 
while protecting intellectual property; 

Increase of the volume of R&I in order to reach the critical mass when compared to 
other countries, for instance USA. 

All these measures increase the knowledge spillovers, the productivity of ‘”knowledge” and 
therefore the leverage effect. 

Risk  can  also  be  reduced  by  demand-side  measures.  The  European  institutions  for  research 
and  the  associated  actions  are  mainly  “supply  side”  measures  that  take  little  account  of 
demand  driven  by  the  market,  but  recently,  there  has  been  a  clear  policy  shift  to  create 

EN 

41 

   EN 

 
effective supply-demand81 matching in research and for the particular role of demand driven 
innovation  for  growth,  welfare  and  well-being.  One  way  to  increase  demand  driven 
innovation is the creation of lead markets. The lead marked initiative82 for bio-based products 
launched by  the  European Commission (Directorate-General for Enterprise and Industry) is 
exemplary. Public procurement is another effective way to create demand for new innovative 
products.  

The leverage effect describes the multiplier effect of subsidies on R&I expenditures. Analysis 
of  results  and  impacts  of  FP  funded  projects  in  the  food,  agriculture,  fisheries  and  bio-
technology  areas  show  that  participation  in  FP  funded  projects  had  leverage  effects  and 
facilitated  access  to  additional  funding  sources  such  as  national  agencies  or  private 
foundations. Stronger links between research and innovation encourage the private sector to 
invest  more  in  R&I  as  it  has  been  described  in  previous  studies  about  the  Framework 
Programme.  

For FP7, the “institutional effect” of EU finding is 0.33 (projects are funded at 75% by EU 
and € 1 from FP is followed by € 1.33 R&D Iexpe nditures), but a greater leverage has been in 
fact observed. The Impact Assessment of Horizon 2020 retained € 2.1 for private and € 1.6 
for public research as effect of € 1 R&D expendi ture. Greater leverage could be expected in 
the bioeconomy with specific stimulating actions and support to innovation policies.  

2. 

SCENARIOS 

Four Scenarios (SOs) have been considered to assess how to best unlock the innovation and 
employment creation potential of Bioeconomy research. The analysis of the social, economic 
and  environmental  impacts  of  the  four  scenarios  will  allow  for  identification  of  the  most 
efficient  one  to  achieve  the  objectives,  while  respecting  the  principles  of  subsidiarity  and 
proportionality. 

SO1: The bioeconomy under “business as usual” conditions: SO1 is the baseline scenario 
described in Section 2.3. 

SO2: A Non-EU coordinated Research and Innovation in bioeconomy: In this option, EU 
research efforts in the bioeconomy are discontinued, but are undertaken by Member States. 
Coordination  of  research  and  innovation  efforts  between  Member  States  is  very  limited. 
However, policies related to the bioeconomy continue under present arrangements at both EU 
and national levels, on a sectoral approach and with minimal coordination.  

the  bioeconomy  research  benefits  from  a  new  approach  supporting 

SO3: The bioeconomy is supported by enhanced efforts in research and innovation: In this 
scenario, 
the 
implementation  of  the  Innovation  Union  through  the  Horizon  2020  programme:  research  is 
performed  under  an  integrated  research  and  innovation  approach  specifically  aiming  at 
tackling  societal  challenges,  and  in  an  effort  to  support  innovation  to  allow  a  better 
deployment of products and processes on the market and to enhance social innovation. It is 
also  supported  by  instruments  to  foster  excellence  in  the  science  base  and  create  industrial 

81 

82 

E. Mann, L. Soete, F. Gannon, A. Hibon, E. Nowotny and C. Vela (2010) Mid-Term Evaluation of the 
Risk-Sharing Financial Facility (RSFF) – Final draft of the Group of Independent experts 
Lead Market Initiative for Bio-based Products Ad-hoc Advisory Group– Brussels, 2011 February. 

EN 

42 

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leadership  and  competitive  frameworks.  The  different  policies  related  to  the  bioeconomy 
continue to work on a sectoral approach at both EU and Member States' levels. As stated in 
the  Multiannual  Financial  Framework  Proposal83  (MFF),  Research  and  innovation  in  the 
bioeconomy benefit from an increased funding compared to FP7: € 4.5 billion for the 2014-
2020 period.  

SO4: The bioeconomy supported by reinforced policy interaction and enhanced efforts in 
research  and  innovation:  In  this  option,  the  bioeconomy  is  given  a  coherent  interaction 
framework  of  supportive  public  policies  that  aim  at  reconciling  competing  activities  and 
overlapping  initiatives.  Research  and  Innovation  is  structured  so  as  to  match  societal 
challenges  and  policy  objectives.  This  scenario  links  with  the  CAP  and  CFP,  as  well  as 
industry, environment and energy related policies, due to the potential of innovation in these 
sectors. The future European Innovation Partnership (EIP) on "Agricultural Productivity and 
Sustainability"  as  proposed  in  the  reform  package  for  the  CAP  post  2013  and  the 
Communication  "Innovation  Union"  will,  for  example,  become  a  key  tool  for  inducing 
innovation in agriculture. Regional policy contributes to the development of new innovative 
businesses  and  infrastructures  in  Europe.  Provision  of  appropriate  human  capital  requires 
coordination  with  training  and  educational  policies.  As  in  SO3,  the  bioeconomy  research 
benefits  from  a  new  approach  supporting  the  implementation  of  the  Innovation  Union 
through the Horizon 2020 programme: research is performed under a new cross-disciplinary 
approach specifically aiming at tackling bioeconomy societal challenges, and in an effort to 
support  innovation  in  order  to  allow  a  better  deployment  of  products  and  processes  on  the 
market.  Research  and  innovation  in  the  bioeconomy  benefit  from  an  increased  funding 
compared to current level, as stated in the MFF. 

3. 

COMPARING THE POLICY SCENARIOS 

3.1. 

How the options were compared 

The four scenarios identified and presented in Chapter 2 were compared according to a range 
of criteria, chosen to identify the extent to which the various options contribute to the solution 
of  the  problems.  The  selected  criteria  have  been  grouped  into  four  sets  covering  the  policy 
interaction  model,  innovation,  public  goods  and  sustainability.  The  groups  include  within 
them  a  variety  of  sub-criteria  including:  strengthening  the  policy  interaction  model  of  the 
bioeconomy;  improving  the  efficiency  of  research  and  innovation  through  spillovers  and 
leverage  effect,  contributing  to  innovation  in  the  bioeconomy,  providing  EU  added  value, 
stimulating  high  skilled  jobs;  contributing  to  the  supply  of  public  goods;  contributing  to 
positive environmental, social and economic impacts.  

The  approach  draws  on  the  public  consultation  already  summarised  in  this  Staff  Working 
Document, various consolidated sources of expert opinion, evaluation studies of FP6 and FP7 
funded  projects  and  specially  commissioned  economic  modelling.  Scientific  evidence 
provided  by  the  JRC  publications  or  FP6/7  projects  from  “Agriculture,  Fisheries  and 
Biotechnologies” has also been taken into account. 

83 

COM(2011) 500/I final and COM(2011) 500/II final 

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3.2. 

Comparison by criteria 

3.2.1.  Policy interaction potential 

In  SO1  and  SO2,  no  positive  improvement  of  policy  interaction  was  projected.  SO3  will 
contribute  significantly  to  the  coordination  of  research  in  the  bioeconomy  through  the 
deployment  of  ERA  activities84.  It  will  not  however  facilitate  the  provision  of  a  sufficient 
knowledge base for polices, nor for coordinated actions. Benefits brought to the bioeconomy 
from  sectoral  and  horizontal  policies  at  EU  and  national  levels  will  not  be  enhanced  by  a 
specific coordinated approach. This scenario will go some way towards reducing perceptions 
of  risk  through  the  Risk-Sharing  Finance  Facility  (RSFF).  SO3  has  little  direct  impact  on 
product  standards,  market  failures  or  the  consistency  and  effectiveness  of  regulation, 
although it can provide scientific evidence on which to base intervention policies. 

It is among the main aim of SO4 to improve informed dialogue by the establishment of EU-
level  bioeconomy  platforms  and  by  the  development  of  national  and  regional  bioeconomy 
development strategies inspired by a common European approach. In particular, a reinforced 
interaction  can  (1)  reconcile  potentially  overlapping  policies  and  measures,  taking  into 
account  trade-offs;  (2)  reinforce  the  impacts  of  supporting  policies  and  measures;  and  (3) 
facilitate  the  removal  of  market  failures  in  a  coherent  manner  across  the  EU  and  the 
introduction  of  effective  and  appropriate  regulation.  Research  can  contribute  strongly  to  a 
better  informed  dialogue  by  improving  forward-looking  analytical  tools  that  represent  the 
bioeconomy satisfactorily and by further development of assessment methodologies such as 
life  cycle  analysis  and  multi-criteria  analysis.  SO4  has  the  potential  fully  to  exploit  the 
opportunities of European level monitoring and interactions along the paradigms of resource 
efficiency and green growth. 

Coherence  of  research  policy  with  other  policies  under  SO4  will  strengthen  the  impacts  of 
research  in  whichever  direction  policy  may  lead  and  can  inform  sectoral  decisions.  For 
example, the longer term impacts of bioenergy on agricultural forestry will largely depend on 
the  rules,  standards  and  incentives  introduced  for  the  production  of  biomass  and  the 
effectiveness  of  their  implementation85.  The  integration  between  the  biomass  utilisation  for 
bio-based  products  and  bioenergy  by  multi-product  use  and  cascading  is  expanding  which 
leads  to  improved  resource  efficiency,  optimised  environmental  benefits  and  waste 
reductions. 

International cooperation is essential to ensure that bioeconomy-related global challenges are 
well  addressed  at  the  appropriate  level,  and  to  develop  common  standards,  coherent 
surveillance and control and consistent regulations that do not impede trade. 

3.2.2. 

Innovation performance of scenarios 

The non-Europe option SO2 envisages that the EU would withdraw from research in the field 
and that policy cooperation with Member States and among sectors would evolve without any 
guiding  strategy.  There  would  be  negative  impacts  for  this  option.  Innovation  potential  for 

84 

85 

European Commission (2011) Impact Assessment accompanying the European Commission proposal 
for "Horizon 2020, the Framework Programme for Research and Innovation CSF Impact Analysis" 
Standing Committee on Agricultural Research (2011) The 3rd SCAR Foresight Exercise; Sustainable 
food consumption and production in a resource-constrained world 

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agriculture  would  remain  largely  unused.  The  impacts  from  overcapacity  in  fishing  and 
overexploitation of stocks would worsen as the lack of publically funded EU-wide research 
would prevent adoption of optimal policies. Both SO3 and SO4 are conducive to high levels 
of innovation as a consequence of the improved research funding. SO4 can be expected to be 
more successful in ensuring that innovations are adopted because of the greater involvement 
of  stakeholders  and  encouragement  of  local  and  regional  initiatives.  In  SO4,  enhanced 
interaction  within  research  activity  and  with  other  policies,  promotion  and  exploitation  of 
research results, acting on both supply and demand of bio-based products will strengthen the 
so-called  "externalities",  in  particular  spillovers,  both  sectoral  and  international  ones.  The 
additional benefits, or spillovers will be strengthened in SO4 compared to the BAU and SO3; 
in  particular  the  international  spillovers  through  a  better  dissemination  of  results  and 
intensification  of  exchanges.  The  inter-sectoral  spillovers  would  be  potentially  more 
important in SO2 through for example regional policies and development of competitiveness 
poles, but at the detriment of the international spillovers.  

The development of competitive bio-industries would be delayed in SO2 as a consequence of 
continued problems of access to markets, finance and knowledge and conflicting regulations 
and standards across the Union. In option SO3 the enhanced research into second and later 
generation  bio-refineries  and  the  extension  of  the  product  range  will  provide  the  basic 
scientific underpinning of a broadly-based bio-based industry, in particular chemical industry. 
Under SO4, public policy will be informed to better reflecting external costs, allocating risk 
rationally,  providing  financial  support  for  demonstration  plants  and  creating  a  long-term 
strategy  to  stimulate  demand  through  incentives  and  public  procurement.  Innovation 
variables  will  have  an  important  impact,  in  particular  in  SO4  aiming  at  promoting  strongly 
further private investment. 

For the food chain, the non-Europe option SO2 will be similar to SO1, but exacerbated by a 
lack  of  underlying  scientific  knowledge  and  poor  coordination  of  research.  The  underlying 
structural  tensions  in  the  food-chain  will  continue.  The  potential  health  benefits  from 
coordinated  European  interventions  in  regulations  and  practices  based  on  publically-funded 
scientific research would be lost or delayed. SO3 will make a substantial contribution to an 
improved  food  chain  and  will  have  beneficial  impacts  through  improved  predictive  risk 
assessment,  effective  control  measures,  global  surveillance  systems,  new  food  safety 
technologies  and  detection  methods,  microbial  and  chemical  hazards  and  their  control, 
inclusion of biosensors in food packaging, intelligent packaging with embedded information, 
a  better  understanding  of  obesity,  satiety,  dietary  requirements  of  the  elderly  and  the 
epidemiology of environmental and chemical risks.  

The  link  between  research  and  innovation  with  education  and  skills  is  emphasized  in 
Innovation  Union;  it  is  particularly  relevant  for  the  bioeconomy,  and  SO4  will  be  able  to 
address this characteristic. The fact that multidisciplinary approaches are needed will imply 
development  of  innovative  systems  of  formation  and  dissemination  of  knowledge. 
Furthermore, many social innovations could take place within the food chain in relation for 
example  to  the  distribution  of  food,  lifestyles  changes,  food  and  health.  These  forms  of 
innovation can be encouraged both by SO3 and SO4, but it is likely that they would flourish 
better  under  SO4  because  of  the  greater  involvement  of  stakeholders  from  beyond  the 
conventional  research  community.  A  particularly  strong  support  can  be  expected  from  the 
post 2013 CAP which, through its rural development pillar, will put in place specific tools to 
enhance innovation. 

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3.2.3.  Strengthening "public good" policy 

Bioeconomy  sectors  provide  and  support  a  wide  range  of  public  goods  –  i.e.  goods  that 
cannot  be  provided  efficiently  by  private  market  activities  –  in  the  fields  of  education, 
knowledge  and  Research  and  Innovation  (R&I),  health,  land  infrastructures,  water, 
environmental quality, protection of nature. Many of them are characterised by spillovers and 
cross-border effects that make EU action particularly relevant. 

The  lack  of  incentives  for  private  producers  means  that  there  is  an  inadequate  provision  of 
public  goods  associated  to  the  bioeconomy.  This  is  one  of  the  challenges  that  have  to  be 
considered in the evaluation of scenarios. SO3 is likely to stimulate the provision of public 
goods only modestly, to the extent of the additional funding of public R&I efforts that could 
be devoted to activities in the public domain such as those listed above. 

SO4 addresses the public good question better. The creation of a sound knowledge base for 
coherent  policies  –  enhanced  by  SO4  would  contribute  to  achieving  the  objectives  of 
increasing efficiency, production and jobs in market activities of the bioeconomy as well as 
improving  health,  social  and  environmental  conditions,  expanding  the  provision  of  non-
market services and related employment. The nature of R&I supported by EU policies would 
take  into  account  in  a  more  systematic  way  the  co-existence  of  such  different  objectives; 
innovations introduced in products and processes would give consideration to improvements 
in knowledge, nutrition, wellbeing, resource savings and environmental sustainability, as well 
as  to  economic  factors.  A  wide  range  of  activities  could  result,  both  in  market  and  non-
market  spheres.  The  outcome  would  be  a  greater  ability  to  satisfy  non-market  needs,  with 
more effectiveness and efficiency.  

3.2.4.  Sustainability 

3.2.4.1.  Environmental impacts 

Under SO2 the negative environmental impacts of SO1 will remain insufficiently addressed 
by research, relevant data and improvements in existing models. The impacts of SO3 on the 
environment will be generally positive, as it links greening economic activities and integrated 
environmental  protection  with  resource  efficient  production  and  economic  performance. 
Emerging risks of new production and consumption systems may be identified that could not 
be considered in solution-oriented, short-term research designs. From this perspective, public 
research on environmental systems is particularly important to complement private research.  

The  European  level  concerted  approach  of  SO3  is  especially  important  for  fisheries  and 
aquaculture,  because  the  marine  environment  is  international  in  most  cases.  Management 
measures  contained  within  the  reformed  CFP  and  required  by  the  Marine  Strategy 
Framework Directive would reduce environmental impact from aquaculture and help achieve 
Good Environmental Status over the next decade.  

In SO4, the increased utilisation of waste and by-products and share of dedicated perennial 
crops  and  integrated  cropping  systems  could  increase  the  efficiency  of  land-use,  enhance 
carbon  storage  and  reduce  water  pollution.  A  more  favourable  commercial  and  financial 
environment  and  improved  regulation  and  standards  will  promote  bioenergy,  chemical  and 
materials manufacture. 

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In the food chain, changes towards a more environmentally friendly diet and a reduction in 
food spoilage and greenhouse gas emissions in households will be aimed at. In addition, well-
informed, mature and independent consumers will reduce environmental impacts of the food 
chain,  particularly  with  regards  to  resource  use  and  GHG  emissions  and  waste  reduction86. 
Bio-diversity  will  benefit  from  an  increase  of  sustainable  farming  practices,  if  it  is  assured 
that  within  the  supporting  measures  for  farming  also  the  obligation  to  maintain  (or  create) 
diverse land structures is included.  

3.2.4.2.  Social impacts 

The impact of bioeconomy research funding and improved policy interaction on employment 
is potentially significant. The pre-requisite for job creation is that skilled entrepreneurs and 
project managers can develop and implement business models creating new value chains and 
value-added bio-based products that are successful in the global marketplace. Creating high-
skilled jobs within the bioeconomy depends on success in creating competitive bio-industries. 
For this reason neither SO1 nor SO2 are likely to create many jobs in the area.  

Under  SO3  the  number  of  jobs  created  in  the  bioeconomy  increases  substantially  as  a 
consequence  of  the  economic  growth  following  the  stimulus  to  innovation  provided  by  the 
increase in research funds; 120,000 jobs would be created in the bioeconomy by 2025 (gross 
increase). For SO4, 11,000 more jobs than for SO3 are expected by 2025. This is fewer than 
the  incremental  employment  generated  in  moving  from  SO1  to  SO3  because  the  main 
economic benefits of SO4 appear as productivity gains rather than as employment. SO4 will 
generate new jobs particularly in those sectors which will invest in the non-food applications 
of biomass, e.g. energy, chemicals, eco-innovation. 

SO4 contributes to achieving a diverse multifunctional European agriculture that will provide 
ecosystem  services  as  coproduction  with  support  from  a  strong  and  more  targeted  CAP87. 
Technology,  social  and  management  innovation  will  make  a  strong  contribution  to  rural 
development  and  open  new  non-food  markets  for  the  farmers.  The  closer  interaction  of 
research  and  policy  under  SO4  can  be  helpful  here  also  not  least  in  the  promotion  of 
bioeconomy uptake in rural development strategies.  

Foreign investment in agricultural land could be spurred by the expanding market for biofuels 
in SO4. The expansion of bioenergy production and bioenergy and biofuel use in Europe may 
have  profound  impacts  in  global  environmental  aspects,  particularly  land  use  changes  in 
Brazil88.  This  is  a  potential  negative aspect  of  SO4;  it  may  be  partially  alleviated  by  main-
streaming the bioeconomy into the technical cooperation policy of the EU. 

Food availability, safety and quality will get strong support by SO4 as a result of an increase 
in improved knowledge, helping the variety of both food products and channels, which will 
also bear positively on consumer choice. Understanding long term consumer behavior will be 
more  developed  in  SO4.  Confidence  and  consumer  acceptance  are  known  to  correlate 

86 

87 

88 

Standing Committee on Agricultural Research (2011) The 3rd SCAR Foresight Exercise; Sustainable 
food consumption and production in a resource-constrained world 
European  Commission  (2011)  The  CAP  towards  2020:  Assessment  of  Alternative  Policy  Options 
(SEC(2011) 1153) 
A.G.  Prins,  B.  Eickhout,  M.  Banse,  H.  Meijl,  W.  Rienks,  and  G.  Woltjer  (2011)  Global  impacts  of 
European agricultural and biofuel policies, in Ecology and Society 16(1) 

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strongly  with  the  stringency  of  the  regulatory  framework.  The  prospects  for  poverty 
alleviation are rather moderate in all options, with however a slightly rosier picture for SO4, 
notably  as  a  result  of  the  generalized  efficiency  increase  and  the  increases  in  food 
availability, and the expected rise in the share of local food supply characterizing this option. 

The current crisis could affect these results, but not in a dramatic way. Recent statistics show 
that investments into research and innovation have remained at the same level of GDP real 
growth (%) even in the 2008 crisis. 

3.2.4.3.  Economic impacts  

The  Actions  envisaged  in  the  different  scenarios  have  been  subject  of  simulations  with  the 
European econometric sectoral model NEMESIS. For SO1, SO2 and SO3, the same general 
assumptions  for  research  and  innovation  variables  have  been  used  as  for  the  Horizon  2020 
Impact Assessment. The budgets of € 80 billions  dedicated to the whole "Horizon 2020" and 
€ 4.5 billions for "food security, the bio-economy  and sustainable agriculture" as indicated in 
the  Multi-annual  Financial  Framework89  have  been  introduced  into  SO3.  Compared  to  the 
reference scenario SO1, the impact of Horizon 2020 on the value added of the bioeconomy 
activity alone would be an increase of 0.61% (€ 9 billion) , with the creation of 120,000 jobs 
by 2025 when the full impact of the "Horizon 2020" will have taken place.  

SO4  has  then  been  simulated  through  sensitivity  analysis  of  SO3  relative  to  the  main 
variables  characterizing  innovation  economics,  e.g.  research  productivity,  spillovers, 
subsidies, leverage effect (see Table 2). It is obvious that the impact of such variables is less 
important  than  the  impacts  of  the  budgets  which  are  considered  in  SO3,  even  if  these 
variables  would  also  induce  in  SO4  some  additional  R&I  expenditures  from  private  and 
public  sectors  (due  to  the  increase  of  leverage  effect).  According  to  a  scenario  where  the 
economic  performance  of  innovation  variables  is  increased  by  40%  due  to  successful 
implementation,  the  impact  of  SO4  on  the  bioeconomy  activity  in  2025  would  represent 
0.14% of its value added (€ 2.4 billion) compared  to SO3; this impact would come in addition 
to the € 9 billion generated by SO3; this w ould correspond to 11,000 additional jobs to the 
120,000 jobs creation in SO3 by 2025. In cumulated terms, over 12 years from 2013, the SO4 
option  would  then  generate  employment  of  790,000  jobs-year  and  €  45  billion  of  value 
added. It should be underlined that these increases correspond to direct impacts of research 
funding on the bioeconomy sectors. Indirect impacts on the rest of the economy would also 
be important.  

The  SO2  scenario  relative  to  a  renationalisation  of  European  research  would  have  negative 
impacts  on  bioeconomy  value  added  which  would  fall  about  -0.27%  compared  to  the  SO1 
level in 2025.  

89 

COM(2011) 500/I final and COM(2011) 500/II final 

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Table 1: Summary of comparative economic impacts of scenarios in 2025 

value 

Added 
(bioeconomy only, %) 
Added 
value 
(bioeconomy only) 
Employment 
(bioeconomy only) 

created 

SO2/SO1 
- 0.27 % 

SO3/SO1 

SO4/SO3 

SO4/SO1 

+ 0.61 % 

+ 0.14 % 

+ 0.75 % 

created 

- € 4 billion 

€9 billion  

€2.4billion  

€11.4 billion  

created 

-  

+ 120 000 

+ 11 000 

+131 000 

3.3. 

Comparing and choosing the Scenarios 

Scenario characterisation, mechanisms at work, simulation model and overall effects are the 
different steps to consider for the Policy Options economic comparisons. The comparison of 
the impacts on some possible key aspects of the innovation and market variables is presented 
in Table 2.  

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Table 2: Synopsis of scenarios, Main Key Actions related to Innovation and mechanisms of change 

Policy 
Option 

Actions 

R&I 
Fund. & 
Subsidy 

Coefficients of the simulation model 
Skills  Market 
Leverage
behav. 
Rate of 
Private 
R&I 

Spillov. 
Coeff. of 
Knowl. 

New 
Product 
markets 

Producti
v. of 
Knowl. 
& Diffus. 
Effects 

Potential market effects 
Higher 
New 
New 
Producti
Priv. 
Process, 
v. 
Invest. 
Lower 
Prices 

+ 
+++ 

+ 

+ 

+++ 

++ 

++ 

++ 

+ 

+ 

+ 

+++ 

++ 

+ 

+ 

++ 

+++ 

++ 

+ 

++ 

+ 

++ 

+ 

+ 

++ 

++ 

+ 

++ 

++ 

++ 

+ 

+ 

Non-market effects 

Higher 
provision 
of public 
goods 

Social 
Well-
being 

Envir. 
Quality 

Hig
h. 
GD
P 
and 
emp
l. 

+++ 

+++ 

++ 

+ 

++ 

+ 

++ 

+ 

+ 

++ 

++ 

++ 

++ 

++ 

+ 

+ 

+ 

+ 

+ 

+ 

++ 

+ 

++ 

+ 

+ 

+ 

+ 

+ 

+++ 

+ 

+++ 

++ 

+++ 

++ 

+++ 

+++ 

+ 

++ 

+ 

+ 

+ 

++ 

++ 

++ 

++ 

++ 

++ 

++ 

+ 

Non-EU 
Enhance support to 
“bioeconomy” 
Use  instruments  of 
European  Research 
Area 
Strengthen 
links 
between  different 
funding 
instruments 
Coordinate 
public/private 
research 
Foster  product  and 
agriculture  process 
innovation 
Market 
organisation 
demand driven 
Education 
Training policies 

and 

and 

SO2 
SO3  

SO3  

SO3  

SO3  

SO4 

SO4 

SO4  

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Table 3 shows how each scenario compares to BAU according to the selected criteria.  

Table 3: Impacts of Policy Options compared to BAU option 

Option

SO2 

SO3 

SO4 

Criterion 
Interaction 
Building knowledge base for regulation 
Knowledge base for remedying market failure 
Supporting International cooperation 
Promoting innovation 
Providing EU added value 
Sustaining primary production  
Building  knowledge  base  for  sustainable  and  competitive 
bio-based industries  
Building  knowledge  base  for  sustainable  and  productive 
food chain  
Stimulating high skilled jobs 
Promoting "public goods” 
Environmental impacts 
Social impacts 
Economic impacts 

-- 
-- 
-- 
- 
- 
-- 
= 
= 

= 

= 
-/+ 
- 
- 
= 

+ 
+ 
+ 
= 
+ 
+ 
+ 
+ 

+ 

+ 
= 
+ 
+ 
+ 

++ 
++ 
++ 
+ 
++ 
++ 
++ 
++ 

++ 

++ 
+ 
++ 
++ 
++ 

The  selection  of  a  preferred  scenario  is  simple  as  SO3  is  superior  to  SO2  in  every  way, 
recognising  the  clear  advantages  brought  by  European  research  programmes  for  the 
Bioeconomy; and SO4 is superior to SO3 in every respect as it not only benefits from all the 
advantages  of  SO3,  but  also  from  a  supportive  policy,  regulatory  and  market  environment. 
The  Strategy  "Innovating  for  Sustainable  Growth:  a  Bioeconomy  for  Europe"  has  been 
developed according SO4, the most advantageous Scenario. 

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