COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS A Strategic Framework for a Competitive and Sustainable EU Bioeconomy
Date: 2025-11-27
Institutions: Directorate-General for Environment, European Commission
Subjects: bio-industry, biomass, biomaterials, circular economy, competitiveness, innovation, investment, management of resources, natural resources, sustainable development

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 27.11.2025  COM(2025) 960 final  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS         A Strategic Framework for a Competitive and Sustainable EU Bioeconomy {SWD(2025) 895 final}  
 
 
INTRODUCTION 

The bioeconomy represents a strategic opportunity of the 21st century - a driver of 
green growth, competitiveness and resilience. It makes better use of Europe’s biological 
resources, scientific excellence and industrial base to decarbonise our economy and replace 
fossil-based materials and products. It develops practical solutions that support economic 
prosperity, and strong rural and coastal communities, while helping industry shift to more 
circular  production  models.  It  contributes  to  the  EU’s  strategic  autonomy  by  reducing 
reliance on imported fossil-based products and can contribute significantly to climate and 
environmental  goals  such  as  resource  efficiency,  greenhouse  gas  emissions  reduction, 
water resilience, zero pollution and biodiversity.  

The  bioeconomy  is  defined  as  the  activities  that  deliver  sustainable  solutions  based  on 
biological resources to create added value. These include products, services, science and 
technologies  benefiting  sectors  ranging  from  agriculture,  forestry,  fisheries  and 
aquaculture  to  value  chains  based  on  biomass  processing,  biomanufacturing  and 
biotechnologies such as in food1, health, energy, industry, ecosystem and other services. 
Biological resources2 include genetic resources, as well as primary and secondary biomass, 
such  as  by-products  and  residues,  and  biogenic  carbon3  captured  through  innovative 
technologies.  

Europe’s  bioeconomy  has  strong  foundations:  world-class  science,  cutting-edge 
technologies, a competitive industrial base, a single market of 26 million companies and 
450  million  consumers4  and  significant  biomass  production5  managed  by  EU  farmers, 
foresters and fishers. 

With  a  value  of  up  to  EUR  2.7  trillion in  202367,  the  EU’s  bioeconomy  is  a  dynamic 
driver for competitiveness and is of strategic importance for a wide range of economic 
sectors8. In 2023, biomass producing and converting activities employed in the EU 17,1 
million people (8% of EU jobs) and generated EUR 863 billion in value added (5% of EU 
GDP)9. R&D investment in bioeconomy-related sectors reached EUR 23.2 billion (9% of 

1 

2 

Food is a key part of the bioeconomy and at the heart of the Vision for Agriculture and Food. While it is not the 
primary focus of this strategy, several of its actions benefit food innovation and complement EU policies related to 
sustainable food systems.  
The  strategy uses  the  following  terms:  (1)  ‘Biological  resources’ includes  genetic  resources, organisms  or parts 
thereof, populations, or any other biotic component of ecosystems with actual or potential use or value for humanity 
(Convention  on  Biodiversity).  (2)  Biological  resources  encompass  also  “Biomass”:  “‘biomass’  means  the 
biodegradable fraction of products, waste and residues from biological origin from agriculture, including vegetal 
and  animal  substances,  from  forestry  and  related  industries,  including  fisheries  and  aquaculture,  as  well  as  the 
biodegradable fraction of waste, including industrial and municipal waste of biological origin.” (recital 24 of the 
Renewable  Energy  Directive)  (3)  “bio-based  =  derived  from  biomass.  Biomass  can  have  undergone  physical, 
chemical or biological treatment(s).” (European Committee for Standardization (point 2.1)) 
3 
This strategy uses the term defossilisation to acknowledge that materials consist of carbon. 
4   COM (2025) 500 final, A strategy for making the Single Market simple, seamless and strong  
5  Mubareka, S.B. and Renner A. (editors), EU Biomass supply, uses, governance and regenerative actions - 10-year 

anniversary edition, Publications Office of the European Union, Luxembourg, 2025  

6   Lasarte-López,  J.,  M’barek,  R.  (2025).  The  EU  bioeconomy  at  a  glance:  Focus  on  economic  value  added, 

employment and innovation. European Commission, Seville, 2025. JRC143759 

7  When  considering  also  service  activities,  the  size  of  all  bioeconomy-relevant  sectors  is  substantially  increased. 
According to JRC estimates, the bioeconomy-relevant sectors created between 42 and 60 million jobs in 2023 (19-
28% of total employment), and generated a value added between  EUR 1.9-2.7 trillion (around 11-16% of EU’s 
GDP). 

8   According to IRP, Global Resources Outlook, 2024, the overall demand for biomass rose from 12.6 billion tonnes 

in 1970 to 24.8 billion tonnes in 2020 
Based on Lasarte-López, M’barek (2025) 

9 

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all  R&D  investments)  in  202310,  while  patents  in  these  fields  accounted  for  5%  of  all 
patents filed in EU between 2008 and 202011. Over the past decade, bioeconomy sectors 
have grown faster than the overall economy12. Estimates suggest that for every job, which 
is created in the European bioeconomy industry, an additional 2.9 indirect jobs are created 
in the EU13. 

Figure 1 – Evolution of value added in the biomass producing and converting sectors (EU27)14 

Source: Lasarte-López, J., M’barek, R. (2025). The EU bioeconomy at a glance: Focus on economic value added, 
employment and innovation. European Commission, Seville, 2025. JRC143759 

The  bioeconomy  still  has  a  huge  untapped  potential.  This  is  notably  due  to  a  lack  of 
investments:  The  European  Investment  Bank  Group  (EIBG)  has  mapped  investment 
needs15 in nine bioeconomy sectors, identifying where the EU must act to close financing 
gaps and  accelerate sustainable transformation.  Their analysis shows sizeable financing 
gaps across the value chain, particularly for scaling biomanufacturing, advanced bio-based 
materials  and  circular  bioeconomy  infrastructure,  which  currently  prevent  promising 
innovations from reaching the market. 

At  the  same  time,  the  bioeconomy  is  constrained  by  planetary  boundaries,  impacts  of 
climate  change  and  the  sustainability  of  biomass16 17.  Responsible  and  efficient  use  of 
biomass  remains  key  for  long-term  competitiveness,  supply  stability  and  eco-system 
health.  

10  Based on Lasarte-López, M’barek (2025) 

11   Grassano, N., M'Barek, R. and Gonzales Hermoso, H., Patenting in the Bioeconomy: An Analysis of Trends and 

Patterns in the EU, Publications Office of the European Union, Luxembourg, 2025 

12     Lasarte-López,  J.,  M’barek,  R.  (2025). The  EU  bioeconomy  at  a  glance:  Focus  on  economic  value  added, 

employment and innovation. European Commission, Seville, 2025. JRC143759 

13  Amsterdam Data Collective, 2025, The Value of Biosolutions: Growth and Prosperity to 2035 – Europe edition 
14     JRC, 2025 The EU bioeconomy at a glance: Focus on economic value added, employment and innovation 
15  EIBG, Investment gaps to achieve sustainable targets in the bioeconomy, 2025. 
16  EEA, The European Biomass Puzzle, 2023, The European Biomass Puzzle | Publications | European Environment 

Agency (EEA) 

17    EEA, Europe’s Environment 2025 – Main Report: Europe’s Environment and Climate: knowledge for resilience, 

prosperity and sustainability.  

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Based on extensive input from several consultations18 this strategy charts a way forward 
to build a sustainable and a nature-positive bioeconomy by:  

1.  scaling innovation and investments;  
2.  building new lead markets for bio-based materials and technologies; 
3.  ensuring sustainable biomass supply across value chains and 
4.  harnessing global opportunities.  

It builds on the 2012 Bioeconomy Strategy19 and the reviews carried out in 201820 and 
202221, shifting the focus towards industrial deployment, market scale-up, competitiveness 
and resilience. The strategy responds to the 2023 and 2024 Council Conclusions22, and the 
strategic agenda for 2024–202923. It also considers the European Parliament’s resolution 
on the future of the EU biotechnology and biomanufacturing from July 2025.24 

Vision: The European Bioeconomy in 2040 

By  2040,  sustainable  bio-based  materials  and  products  such  as  construction  materials, 
biochemicals,  textiles,  fertilisers  and  plant  protection  products  and  plastics  are  widely 
deployed in the EU. They provide fossil-free alternatives and create new, stable income 
streams  in  rural,  coastal  and  industrial  regions  across  Europe.  Sustainable  yield 
improvements support resilient farming and food systems grounded in knowledge-based 
management. Integrated biorefineries and advanced fermentation facilities operate across 
the continent, turning diverse feedstocks into high-value products.  

Europe’s bioeconomy reaches this scale because biotechnology, boosted by the Biotech 
Acts,  becomes  the  engine  that  makes  bio-based  solutions  affordable,  competitive,  and 
deployable at industrial scale. 

Breakthroughs  in  biotechnology  and  biomanufacturing  make  bio-based  solutions  cost-
competitive  and  scalable.  Skills,  investment  certainty,  and  reliable  biomass  supply 
underpin industrial deployment.  

The  Bioeconomy  enables  Europe  to  mobilise  its  own  strengths  –  productive  farmlands, 
sustainably  managed  forests  and  healthy  oceans  –  to  deliver  prosperity,  economic  and 
food security and resilience. Farming and forestry, combined with smarter use of marine 
resources,  ensure  that  Europe  meets  most  of  its  biomass  needs  through  sustainable 
domestic production. The strategic use of by-products and residues makes resource use 
more efficient, while boosting the EU’s position in global markets. 

Globally,  Europe  acts  as  a  leading  partner,  and  exporter  of  sustainable  bio-based 
technologies,  materials,  and  know-how.  Through  fair  and  sustainable  strategic 

18   Staff Working Document – Stakeholders consultation’s synopsis report and the public Consultation results on the 

EU Have your Say portal  

19  COM (2012) 060 final Innovating for Sustainable Growth: A Bioeconomy for Europe  
20  COM  (2018)  673  final  A  sustainable  bioeconomy  for  Europe:  strengthening  the  connection  between  economy, 

society and the environment. Updated EU Bioeconomy Strategy. 

21  COM (2022) 283 final European bioeconomy policy – Stocktaking and future developments  
22   Council  of  the  European  Union,  Conclusions  on  the  opportunities  of  the  bioeconomy  in  the  light  of  current 

challenges with special emphasis on rural areas, 2023  

23   Official Journal as OJ C 2024 400 I, p. 1  
24   European Parliament, Resolution on the future of the EU biotechnology and biomanufacturing sector: leveraging 
research,  boosting  innovation  and  enhancing  competitiveness,  2025.  The  Committee  of  the  Regions  and  the 
European Economic and Social Committee also issued opinions on the bioeconomy. 

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partnerships and trade agreements, the EU taps into new markets. The EU works actively 
in international fora such as the UN Food and Agriculture Organisation (FAO) and the 
World  Trade  Organisation  (WTO),  championing  a  fair  and  rules-based  global 
bioeconomy. 

1.  SCALING UP INNOVATION AND INVESTMENTS: FROM LAB TO DEPLOYMENT 

The past decade has shown the potential of bioeconomy innovation at scale. Value added 
from novel bio-based materials is rising fast  in sectors like chemicals, pharmaceuticals, 
plastics, construction and textiles25. However, international competition, notably from the 
United  States  and  China,  as  well  as  persistent  barriers in  the  single  market  are  slowing 
deployment and risk diverting innovation to non-EU markets.   

To  accelerate  the  move  from  potential  to  deployment,  we  need  to  remove  existing 
barriers  and  scale  up  investment  and  support  to  the  use  of  these  technologies, 
promising highest value added from the limited resources.  

1.1.  Removing Barriers 

Streamlining Requirements and Facilitating Market Entry  

Regulatory  complexity  remains  a  major  challenge  for  the  bioeconomy.  Bioeconomy 
market entry is often delayed because of uncertainty about how to classify novel bio-based 
products that do not clearly fit within existing legally recognised categories26 . Aggravated 
by  divergent  national  rules  and  interpretations  from  one  Member  State  to  another,  this 
complexity  results  in  market  fragmentation  that  increases  the  cost  of  doing  business, 
especially for SMEs.  

To  ensure  that  the  EU  offers  a  predictable  and  enabling  environment  for  bio-based 
innovation while safeguarding EU safety standards, the Commission intends to simplify 
regulatory  requirements  and  accelerate  product  authorisations  through  the  EU  Biotech 
Acts.  The  Biotech  Acts  will  introduce  sectoral  and  horizontal  enablers,  for  example 
regulatory  sandboxes,  fast-track  authorisation  procedures  for  microbial  solutions  for 
industrial use in the bioeconomy and streamlined permitting for biomanufacturing projects. 

Swift and proportionate risk assessments of novel bio-based solutions are crucial. Today, 
such assessments are carried out by the European Food Safety Authority, the European 
Chemicals Agency, and the European Medicines Agency. Their expertise is indispensable, 
and yet innovators often face fragmented and lengthy procedures, particularly when novel 
bio-based solutions do not fit neatly within existing regulatory categories.   

The Commission will establish a European Bioeconomy Regulators and Innovators’ 
Forum as a structured space for exchanging best practices related to risk assessments of 
novel bio-based solutions, monitor progress, and engage in early discussions with firms 
developing novel bio-based solutions. It will coordinate national and EU actions to fast-
track authorisations for new entrants and remove barriers.  

25   Lasarte-López,  J.,  M’barek,  R.  (2025). The  EU  bioeconomy  at  a  glance:  Focus  on  economic  value  added, 

employment and innovation. European Commission, Seville, 2025. JRC143759 
26   European Chemicals Agency (ECHA), Bio-Based Chemicals in REACH, 2023. 

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Beyond the Forum, there is a need to make approvals faster, clearer and simpler. The 
Commission will provide guidance on how to classify new bio-based products and create 
a single online entry point so that companies only need to submit information once. Risk 
assessments will be better coordinated across EU agencies to avoid duplication and reduce 
waiting times.  

The Commission will make technical support available for SMEs scaling innovative 
bio-based  products  to  accelerate  authorisations  while  maintaining  high  safety 
standards.  In  particular,  the  Commission  will  support  SMEs  developing  innovative 
products based on advanced fermentation, including for food and feed.  

To increase regulatory agility and allow bioeconomy innovators to develop and test new 
ideas,  gather  evidence  and  make  sure  regulation  remain  supportive  of  innovation,  the 
Commission will promote the use of test environments such as regulatory sandboxes in 
the bioeconomy, including in the context of the upcoming EU Innovation Act.    

Biotechnology and biomanufacturing will also benefit from clearer and more consistent 
standards that support market uptake. To remain competitive in these complex and rapidly 
evolving fields, the Commission will accelerate the development of bioeconomy standards 
and metrology. It will strengthen its investments under the current MFF in pre-normative 
activities by developing, testing and validating strategic pre-standards, including on data, 
in real-world setting.  

Under the Construction Products Regulation, essential characteristics related to reaction 
to fire and resistance to fire already apply to all construction products where relevant, and 
manufacturers  must  declare  performance  accordingly.  Until  now,  divergent  national 
practices continue to create duplication for those bio-based construction products which 
are not yet harmonised. To address these inconsistencies, the Commission will work with 
Member  States,  industry  and  standardisation  bodies  to  prioritise  the  development  and 
revision  of  relevant  harmonised  standards  within  the  CPR  framework  (by  adopting 
standardisation requests for doors and windows, structural timber products/elements and 
ancillaries, wood-based panels and elements, thermal insulation products in 2026). This 
work  will  ensure  that  existing  EU  test  methods  and  classification  approaches  can  be 
applied  in  a  harmonised  manner  to  timber  and  other  bio-based  products,  while  fully 
respecting that building-level fire safety requirements remain a national competence. 

Non-regulatory barriers 

Compared to fossil-based alternatives, bio-based products can deliver environmental 
benefits that are not always visible to consumers. The ongoing review of the Product 
Environmental  Footprint  (PEF)  methods  will  improve  how  bio-based  materials, 
chemicals and products are assessed and compared. This includes strengthening biogenic 
carbon  accounting,  adding  indicators  on  biodiversity  and  microplastics,  and  refining 
circularity  assessment  methods.  It  will  also  provide  higher-quality  data  to  support 
transparent and credible assessments.  

1.2  

Stimulating Innovation and Investments 

Bio-based  technologies  and  industrial  biotechnology  are  capital-intensive,  requiring 
substantial upfront investments in R&I, demonstration, and manufacturing infrastructure. 
Despite  support  from  EU  funds  and  instruments  to  de-risk  innovation  and  investment, 
funding opportunities remain insufficient for bioeconomy start-ups and scale-ups on the 
path from laboratory discovery to market deployment.  They face two ‘valleys of death’:  

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The  first  occurs  between  demonstration  and  first  commercial  production,  when 
technologies must prove their technical and economic viability.  High capital needs and 
perceived  market  risks  can  deter  private  financing  at  this  stage.  The  second  ‘valley  of 
death’  arises  after  initial  market  entry,  when  companies  seek  to  scale  up  to  industrial 
production.  Here, the challenge is moving to industrial scale, requiring substantial growth 
capital and long-term offtake certainty. 

Figure 2: Two valleys of death in scaling bioeconomy in Europe 

Source: European Commission graph based on the public consultation results and own analysis 

The Strategy for European Life Sciences and the EU Start-up and Scale-up Strategy 
provide the framework to accelerate innovation, improve market access and support scale-
up,  ensuring  that  sustainability  and  competitiveness  advance  together.  This  should  be 
complemented by a number of measures specifically targeted at investment and innovation 
in the bioeconomy, focussing particularly on the later stages of the scale up journey. 

De-risking investments to scale up innovation 

In  order  to  enable  companies  to  finance  scale  up  of  innovation,  it  is  critical  to  reduce 
investment  risks,  mobilise  blended  finance,  and  strengthen  the  financial  viability  of 
breakthrough  solutions.  Access  to  both  early-  and  late-stage  venture  finance  should  be 
facilitated at both EU and national level, with specific  focus on attracting bioeconomy-
focused  investors  and  impact-driven  funds  that  can  support  long-term,  capital-heavy 
projects, in line with applicable State Aid rules. Specific attention should be paid to tailor 
financing suitable to the needs of SMEs, and to address technology readiness levels. 

increases 

the  funding  for 

The  Commission’s  proposal  for  the  next  Multiannual  Financial  Framework  (MFF 
the  European 
2028-2034) 
Competitiveness Fund (ECF), and the Horizon Europe Framework Programme policy 
window on health, biotech, agriculture, and the bioeconomy. This will mobilise research 
and  innovation  funding,  large-scale  investment  along  the  full  value  chain,  including 
sustainable  land  management,  and  de-risk  industrial  deployment,  bridging  the  gaps 
between research, innovation, and market upscale.  

the  bioeconomy 

through 

In the meantime, programmes under the current MFF remain available to address the needs 
of  the  bioeconomy.  These  must  be  fully  implemented,  taking  also  into  account  the 
recommendations from the EIB Group, which include developing a bioeconomy booster 

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programme,  leveraging  the  Circular  Bio-Based  Europe  Joint  Undertaking  (CBE-JU) 
flagship  grant  applications,  and  increasing  flexibility  in  project  support  (e.g.  high-risk 
investments in early-stage ventures)27. The Common Agricultural Policy (CAP) offers 
various models for cooperative investments in bottom-up processing and marketing of new 
value chains, creating value from untapped biomass, and in bridging primary production 
with industrial investments, thereby contributing to rural growth and employment. HERA 
Invest  supports  SMEs  and  startups  investing  in  MCMs28  for  health  risk  reduction  and 
prevention solutions which, where relevant, could make use of bio-based resources and 
biotechnology.  The  InvestEU  Blue  Economy,  a  blended  finance  instrument,  supports 
venture capital and private investment in the blue bioeconomy. 

Starting in 2026, the Commission will improve access to finance and related services for 
startups  and  scale-ups  in  the  bioeconomy  via  the  Scale-up  Europe  Fund  and  other 
European  Innovation  Council  instruments,  in  close  cooperation  with  the  EIB,  other 
financial actors and with national and regional stakeholders. 

From 2026, the Commission will work with industry and stakeholders to review the CBE-
JU  and  determine  the  most  effective  collaboration  format  for  the  next  MFF,  ensuring 
impact and value for money. 

To  attract  private  investors,  the  Commission  will  identify  financial  tools  to  build  on 
successful practices such as the European Circular Bioeconomy Fund (ECBF), through 
the EIB, and national promotional banks. The Commission will also work to ensure that 
sustainable biomanufacturing and other bio-based activities are appropriately recognised 
in the upcoming revisions of the EU Taxonomy Delegated Acts, to improve investment 
certainty. 

To  bring  all  these  instruments  together  the  Commission  will  convene  a  Bioeconomy 
Investment  Deployment  Group  on  finance  and  investment,  combining  research, 
demonstration and scale-up financing across EU and national levels. This group, bringing 
together  the  Commission,  the  EIB  Group,  national  promotional  banks  and  private 
investors, will create a pipeline of bankable projects, share risk more effectively, and crowd 
in  private  capital.  This  coordinated  approach  should  help  mobilise  public  and  private 
investment  over  the  coming  decade,  particularly  for  first-of-a-kind  biorefineries, 
advanced fermentation facilities and bio-based materials manufacturing. 

Support for the dissemination of technologies, pilots and demonstrations 

Limited access to piloting and upscaling infrastructure is another important bottleneck for 
bioeconomy  start-ups  and  scale-ups.  The  Commission  will  support  improved  access  to 
such infrastructures, building on existing synergies between EU programmes, such as the 
partnerships between Green Assist and the Enterprise Europe Network.  

The  Commission  is  working  with  Member  States  to  align  investment  priorities  in  the 
bioeconomy  and  guide  coordination  of  EU  support  mechanisms  with  national  projects, 
including in relation to Important Projects of Common European Interest (IPCEIs). The 
Joint  European  Forum  for  IPCEI  (JEF-IPCEI)  is  examining  the  biotechnology  and 
biomanufacturing value chain to identify potential projects. Member States may design aid 
measures to support IPCEIs for research and development of major innovation and the first 

27  EIBG, Scaling up Europe’s Bio-based industries, 2025 
28  Medical Countermeasures (MCMs) 

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industrial  deployment  of  technologies  crucial  for  the  clean  transition,  or  important 
infrastructure projects.  

2.  DEVELOPING LEAD MARKETS FOR MATERIALS AND TECHNOLOGIES 

Identifying and strengthening lead markets, where bio-based solutions have predictable 
demand conditions, can unlock private investment, and enable scale-up. Priority should be 
given to sectors where bio-based solutions deliver the highest added-value and are close to 
market  deployment  or  already  industrially  mature,  building  on  existing  value  chains  to 
ensure further resource efficiency, faster uptake and visible economic impact, making the 
most of Europe’s biomass resources as a basis for bioeconomy markets. In 2022, biomass 
in Europe was used primarily for: animal feed (38%), energy (29%), materials (24%) and 
food  (9%).  Over  the  last  ten  years,  biomass  use  for  energy  increased  by  14%,  while 
material  use  grew  by  11% 29.  Bioenergy  continues  to  play  a  role  in  energy  security, 
particularly  where  it  uses  residues,  does  not  increase  water  and  air  pollution,  and 
complements other renewables. 

2.1. 

Efficient Use of Biomass  

Efficient use of biomass means directing it toward higher-value applications and reducing 
pressures on ecosystems, while reflecting local conditions and market realities: 

- 

food  and  nutrition  security  while  maintaining  and  improving  ecosystem 
services; 

-  where feasible, biomass should be used for higher-value products and materials that 

- 

store carbon longer and substitute fossil-based materials; 
residual  and  secondary  streams  can  be  used  for  energy,  particularly  where  no 
alternative  decarbonisation  solutions  exist,  or  where  it  ensures  energy  security  and 
energy affordability. 

When assessing the most efficient use pathway in policy and investment decisions, relevant 
factors  include  biomass  quality;  feedstock  type  (primary  vs.  secondary);  biomass 
availability  over  time;  alternative  ways  to  supply  the  same  service  considering, 
sustainability,  environmental  impacts  and  circularity;  infrastructure  and  processing 
capacity; and the local context. 

Going forward, CAP Strategic Plans, National Energy and Climate Plans, Cohesion 
Policy  and  national  or  regional  bioeconomy  strategies  should  support  efficient  and 
appropriate biomass  use. This  approach  is  fully in line with the  Clean Industrial Deal 
State  Aid  Framework,  which  encourages  Member  States  to  ensure  that  projects  and 
activities supported by State aid contribute to the circular economy to the largest extent 
possible. To support Member States and market actors, the Commission will improve the 
transparency of biomass flows under the existing reporting and monitoring mechanisms 
and  share  practical  examples  and  approaches  through  the  Knowledge  Centre  for 
Bioeconomy.  This  work  will  include  a  consistent  and  comprehensive  assessment  of 

29 

JRC policy brief, Biomass supply and demand in the EU 2012-2022 

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environmental  impacts  and  trade-offs  from  a  life  cycle  perspective30,  and  economic 
potential in a system-wide approach, e.g. through economic modelling. 

In 2026, the Commission will design the Energy Union package for the decade ahead and 
take into account the experience gained by the implementation of the Renewable Energy 
Directive (RED), including its sustainability and greenhouse gas emissions saving criteria, 
and technological developments in energy from renewable sources. In addition, by 2027, 
the  Commission  will  publish  a  report,  in  line  with  Article  3(3)  RED,  on  the  impact  of 
Member States’ support schemes for biomass, including on biodiversity, climate and the 
environment, and on possible market distortions. 

Biofuels will continue to play a role in the decarbonisation of the transport sector, notably 
in aviation and maritime, as well as for long-haul heavy duty transport in the transition to 
electrification. Demand is expected to rise from 2025, driven in part by ReFuelEU Aviation 
and FuelEU Maritime. However, the availability of sustainable biomass remains finite, and 
its use is most effective in hard-to-abate sectors. As outlined in the Sustainable Transport 
Investment Plan, this Strategy will support a coherent, circular and sustainable value chain 
for these purposes. 

2.2. 

Enablers  for  bioeconomy  lead  markets  across  sectors:    Public 

procurement and voluntary industry alliances 

Public procurement can help create early demand for innovative materials and solutions. 
The forthcoming revision of the Public Procurement Directives will, among others, seek 
to further promote and facilitate the public procurement of biobased solutions. In addition, 
the Commission will support public buyers who wish to consider bio-based solutions 
in relevant procurement processes.  

Voluntary  industry  initiatives  can  help  create  clearer  demand  signals  and  reduce 
investment  uncertainty,  especially  for  first-of-a-kind  production  facilities.  They 
complement regulatory simplification and financing tools by aligning market expectations 
and improving coordination across the value chain. 

The  Commission  will  develop  a  pilot  project  on  Bioeconomy  under  the 
Competitiveness Coordination Tool (CCT), in line with the Competitiveness Compass. 
This CCT project aims to create the necessary demand that will accelerate the industrial 
readiness  of  biobased  materials,  while  taking  into  account  the  role  of  primary  biomass 
producers  in  the  value  chain  and  ensuring  that  startups  have  access  to  the  necessary 
demonstration  facilities  to  test  their  new  products.  For  that  purpose,  this  project  will 
support the creation of the ‘Bio-based Europe Alliance’ (BEA), a voluntary alliance of 
corporations that could ensure a reliable and predictable demand of biobased materials 
and  products,  reassuring  private  investors  on  their  investments  in  CAPEX-intensive 
facilities as well as guaranteeing the needed offtake agreements. The CCT Pilot on the 
Bioeconomy  would  also  foster  the  creation  of  new  biomanufacturing  demonstration 
infrastructure  facilities  (Technological  Readiness  Level  5-7),  allowing  start-ups  and 
innovative companies to test the viability of new prototypes and products. The Bio-based 
Europe  Alliance  (BEA)  will  bring  together  EU  companies  committed  to  collectively 
purchasing bio-based materials, products and applications worth EUR 10 billion by 2030. 

30  SINKKO,  T.,  CASONATO,  C.,  VALENZANO,  A.,  WIERZGALA,  P.  and  LISTORTI,  G.,  Substituting 
conventional products with bioeconomy innovations: analysis of potential environmental impacts using a Life Cycle 
Assessment perspective, Publications Office of the European Union, Luxembourg, 2025, JRC142832 

9 

 
 
 
 
By  developing  practical  blended  finance  instruments,  tailored  to  the  specificities  of  the 
different bioeconomy sectors, the EU can help  improve investor confidence in scale-up 
stages, including for SMEs and regional producers.  

The  Commission’s  guidelines  on  horizontal  cooperation  agreements  provide  general 
principles and concrete examples of how sustainability agreements can comply with EU 
competition rules. Where companies seek clarity on cooperation models, the Commission 
can provide additional tailored guidance according to the conditions specified in the Notice 
on Informal Guidance. 

2.3. 

Lead markets for materials 

Bio-based  materials  often  struggle  to  reach  economies  of  scale  resulting  in  higher 
production costs, leading to lower demand, which in turn limits growth and investment. 
Similar  challenges  are  experienced  across  most  of  the  markets  for  biomaterials  and 
technologies: cost competition with fossil-based alternatives, feedstock supply risks, weak 
market demand, low economies of scale and longer authorisation timelines. 

The following lead markets were identified as having a high potential to overcome these 
challenges through targeted initiatives and to scale-up the bioeconomy. 

Bio-based  plastics  and  polymers,  as  well  as  bio-based  fibre-packaging  materials,  can 
replace fossil-based materials with alternatives made from renewable biomass sources (e.g. 
starch, lignin or algae).  They are increasingly used in packaging, automotive components 
and  industrial  applications,  with  performance  improving  through  ongoing  research  and 
innovation, including digital and AI-assisted material design.31 

Benefits:  

lower carbon footprint compared to conventional plastics (polymer dependent); 

- 
-  potential to reduce import dependency for key chemical feedstocks; 
- 
supports revalue creation when using locally sourced biomass; 
-  develop new applications for biodegradable plastics. 

Measures to support demand and investment: 

Under the Packaging and Packaging Waste Regulation, the Commission will: 
- 

support  the  recognition  and  uptake  of  bio-based  plastics  and  novel  materials,  in 
complementarity with recycled content targets, ensuring a coherent approach across 
applications; 
assess whether EU-wide definitions could support certification and scaling of bio-
based polymers. 

- 

Textiles from bio-based fibres and fabrics include natural fibres, (cotton, flax, hemp, 
and wool) and man-made cellulosic fibres (MMCFs) from sustainably managed forests, 
can provide a reliable and traceable source of cellulose for these fibres, supporting regional 
value chains.  

31   Towards a circular economy: biopolymers by machine learning, retrieved: 18.10.2025 

10 

 
 
 
 
 
 
 
Benefits:  

renewable feedstocks with established European production capacity; 
can support traceable and regionally rooted supply chains; 
avoid micro-plastic release into the environment;  
rising demand for lower-impact textile fibres; 

- 
- 
- 
- 
-  potential for higher value retention, including in rural regions. 

Measures to support demand and investment: 

-  The Ecodesign for Sustainable Products Regulation (ESPR) will set performance 
and  durability  requirements  for  textiles,  including  those  made  from  bio-based 
fibres. 

-  The revision of the Product Environmental Footprint (PEF) methods will consider 
indicators  relevant  to  fibre  performance,  microfibre  release  and  environmental 
footprint, thereby facilitating customer understanding for the benefits of materials such 
as bio-based textiles. 

-  A  CAP  Network  focus  group  will  explore  how  to  strengthen  EU  wool  processing 

capacity and farmer income diversification. 

Bio-based chemicals are derived from renewable biological resources, such as plants, 
wood,  algae,  and  agricultural  residues,  and  are  used  across  sectors,  including   
pharmaceuticals,  food  and  beverages,  textiles,  personal  care  products,  and  industrial 
applications.  

Benefits: 

-  30–50% lower process emissions (depending on pathway); 
-  microbial and enzymatic processes can support lower-energy production; 
-  opportunities to replace petrochemical inputs and reduce import dependency. 

Measures to support demand and investment: 

The Commission will: 

- 

- 

support  the  scale-up  of  industrial  biotechnology  for  the  production  of  bio-based 
chemicals;  
stimulate  demand  for  and  production  of  bio-based  chemicals,  such  as  the  possible 
introduction of bio-based content requirements for certain products placed on the EU 
single market. 

Bio-based construction  products  include wood and other renewable materials such as 
hemp, straw, mycelium and fibre-based composites. The construction sector is responsible 
for over 35% of the EU’s waste generation and 5-12% of total national GHG emissions 32. 

32  Buildings and construction - Internal Market, Industry, Entrepreneurship and SMEs 

11 

 
 
 
 
 
 
 
 
The use of bio-based products can help reduce embodied carbon and the energy demand 33 
in buildings by about 40% 34.  

Benefits: 

- 
lower embodied carbon and energy demand; 
- 
long-term carbon storage in buildings; 
-  diversification of material supply chains; 
- 
supports regional processing ecosystems. 

Measures to support demand and investment: 

Under the revised Construction Products Regulation (CPR), the Commission will: 

- 

- 

continue  standardisation  work  for  bio-based  construction  products  and  ensure 
standards to allow fair comparison between conventional and innovative  materials, 
opening and expanding the EU market for bio-based construction products; 
for  new  bio-based  construction  products  not  yet  harmonised,  future  standards  will 
ensure that their performance, including fire behaviour, can be directly compared with 
similar products made of different materials, thereby improving their competitiveness 
and circulation within the single market. 

To stimulate market uptake, the Commission will: 

- 

- 

support industrialised and modular construction using durable bio-based materials, by 
contributing  to  standardisation  work,  public  procurement  models,  and  reference 
projects under the Strategy for Construction (2026); 
support the whole-life-cycle assessment of buildings’ greenhouse gas emissions under 
the Energy Performance of Buildings Directive; 

-  develop  a  methodology  for  certification  of  long-lasting  biogenic  carbon  storage  in 
buildings  under  the  Carbon  Removal  and  Carbon  Farming  Certification 
Framework (CRCF). 

The New European Bauhaus (NEB) will continue to: 
- 

support  demonstration  projects  (e.g.  school  renovations,  social  housing,  public 
interiors); 
link  designers,  architects,  manufacturers,  builders,  cities  and  authorities 
managing EU, national and regional funds; 
improve market acceptance and visibility.  

- 

- 

The NEB Academy will: 
- 

support  training  and  skills  development  for  bio-  and  nature-based 
construction;  

-  provide targeted support for SMEs and innovation ecosystems;  

33  BIOBUILD Project - Thermal Solutions for Green Buildings 
34  Paving  the  way  for  lowering  embodied  carbon  emissions  in  the  building  and  construction  sector  |  Clean 

Technologies and Environmental Policy 

12 

 
 
 
 
 
 
 
 
 
- 

support research and innovation.  

Bio-based  fertilisers  and  plant  protection  products.  Bio-based  fertilising  products 
include microorganisms, recycled nutrients and  bio-based compounds that improve soil 
fertility  and  nutrient  availability.  Bio-based  plant  protection  products 
include 
microorganisms  and  natural  substances  (such  as  plant  extracts,  and  other  bio-based 
substances)  that  help  manage  plant  health.  Bio-based  fertilisers  can  lower  import 
dependence and the carbon footprint while turning agricultural residues and local organic 
waste into economic value.   

Benefits:  

reduce reliance on synthetic inputs;  
support soil function and resource efficiency;  
enable circular value chains by using agricultural and processing by-products;  
reduce import dependency for key agricultural inputs; and  

- 
- 
- 
- 
-  provide practical and adaptable options for farms of different scales. 

Measures to support demand and investment: 

With clearer authorisation pathways and improved market visibility, uptake could expand 
significantly by 2040.  

The simplification omnibus for chemicals will streamline the assessment procedures for 
certain microorganisms in fertilising products. And in the upcoming Food and Feed Safety 
simplification package, the Commission will propose measures to accelerate market access 
for bio-pesticides.  

When  evaluating  the  Fertilising  Products  Regulation  (due  by  July  2026),  the 
Commission will examine whether the Regulation is delivering on its objective to promote 
the use of organic and recovered materials. Based on the evaluation, the Commission could 
propose  targeted  measures  (e.g.  dedicated  guidance,  common  data  platforms,  or 
streamlined risk assessments for microbial strains). 

Through the EU CAP Network, the Commission will support knowledge exchanges and 
circular nutrient use; and increase familiarity and practical uptake among farmers and 
advisers. Moreover, the Delegated Act on RENURE (Recovered Nitrogen from Manure) 
provides an option for using processed manure under defined conditions. 

2.4   Lead markets for technologies  

Bio-based technologies are central to scaling up the bioeconomy and expanding Europe’s 
industrial  base.  They  enable  the  conversion  of  primary  and  secondary  biomass  into 
materials, chemicals, fuels and other high-value applications. 

Biorefineries  convert  biomass—  including  woody  biomass,  agricultural  residues,  bio-
waste and processing side-streams – into a range of products such as food ingredients, feed, 
biofuels, biochemicals and biomaterials35. Biorefineries can also produce alternatives to 
critical  raw  materials,  such  as  bio-based  anodes  used  in  batteries.  They  often  require 

35   EU biorefinery outlook to 2030 - Publications Office of the EU 

13 

 
 
 
 
 
 
 
 
 
significant capital investment and coordinated planning for feedstock and infrastructure. 
Enhanced industrial symbiosis can optimise use of feedstocks across sectors, stabilise input 
supplies, reduce waste and production costs and support industrial clusters.  

Advanced fermentation uses innovative, high-performance micro-organisms to convert 
carbon-sources  such  as  sugar  residues  and  other  secondary  biomass  into  high-value 
compounds.  

Developing permanent storage of biogenic carbon can support European leadership in 
net-zero  industrial  technologies;  complement  the  bio-based  materials  value  chain  by 
storing carbon long-term; and provide CO₂ feedstock for industrial processes where carbon 
is required.  

Measures to support demand and investment: 

The Commission and the EIB Group will continue using blended-finance instruments to 
accelerate first-of-a-kind biorefineries and will strengthen de-risking approaches to attract 
more private capital. To support the emergence of strong regional clusters, the Commission 
will facilitate the development of Industrial Symbiosis Valleys that coordinate feedstocks, 
infrastructure and investment planning at territorial level. 

To  help  fermentation-based  businesses  scale,  the  Commission  will  improve  access  for 
SMEs  and  scale-ups  to  pilot  and  demonstration  infrastructure  and  will  enhance 
coordination on authorisation processes where relevant. 

On capture, use and storage of biogenic carbon, the EU ETS review will explore potential 
pathways to recognise biogenic permanent removals certified under the CRCF, while the 
Innovation Fund will continue supporting scalable Bio-CCUS projects. 

3.  SECURING  LONG-TERM  PROSPECTS  FOR  THE  BIOECONOMY:  SUSTAINABLY 

SOURCED BIOMASS 

The EU is largely self-sufficient in biomass supply (around 90%)36. It has the means to 
remain  so,  provided  that  coherent  long-term  measures  are  implemented  that  maintain 
productive capacity, ecosystem health, and resource resilience over time.  

3.1.  Reducing the need for primary biomass: relying on secondary feedstocks and 

circularity  

Circularity  must  become  a  core  principle  of  the  European  bioeconomy.  By  keeping 
materials in productive use for longer and making better use of residues and by-products, 
the  EU  can  support  resource  efficiency  and  reduce  pressure  on  primary  production 
systems. With a circularity rate of 11.8% since 201537, greater uptake of secondary biomass 
streams  presents  opportunities  for  new  circular  business  models.  A  more  circular 
bioeconomy starts locally. When by-products and residues are turned into new resources, 
they create value close to where they arise and help communities become more self-reliant. 
Many regions already show how businesses and industries, including SMEs and primary 
producers to turn waste into feedstock, heat or fertilisers. But a well-functioning EU single 

JRC, EU Biomass supply, uses, governance and regenerative actions, 2025 

36  
37   Monitoring framework - Circular economy - Eurostat     

14 

 
 
 
 
 
 
 
 
 
market  for  secondary  biomass38  is  essential.  Clearer  market  signals  and  processing 
capacity can improve competitiveness of secondary streams. The lead markets measures 
that the Commission will adopt under the Ecodesign for Sustainable Products Regulation 
(ESPR) for textiles and furniture (see section 2) will also set performance and information 
requirements to increase longevity, reusability and recyclability, including for products 
made from biological resources. A similar approach will be taken with regard to the EU 
Ecolabel. 

Bio-waste  remains  under-used.  The  Commission  will  support  its  collection  and 
valorisation,  including  through  the  upcoming  Circular  Economy  Act,  the  production  of 
biogas  and  biomethane,  and  the  use  of  digestate  as  a  bio-based  fertiliser,  through  a 
Tripartite Agreement. Where relevant, biogenic CO₂ capture and use will be encouraged 
to improve resource efficiency.   

Closing  the  nutrient  cycle  is  essential  for  environmental  and  economic  resilience. 
Circular manure use, including through RENURE, can  reduce dependence on synthetic 
fertilisers. The Commission will promote nitrogen efficiency in bioeconomy systems and 
work  towards  minimum  recycling  and  reuse  targets  for  phosphorus  recovered  from 
wastewater and sludge. 

3.2.  Towards resilient and sustainable ecosystems and value chains 

The  strength  of  Europe’s  bioeconomy  depends  on  the  health  and  resilience  of  its 
natural environment.  

Understanding  how  much  biomass  can  be  produced  and  extracted  while  restoring 
ecosystems and maintaining a resilient land sector carbon sink helps ensure that any growth 
stays  within  planetary  boundaries,  and  takes  into  account  LULUCF  goals.  The 
Commission  will  continue  to  draw  on  scientific  evidence,  practical  experience  and 
dialogue  with  producers  and  communities  to  support  a  balance  between  production, 
restoration and protection.  A clearer picture of sustainable  biomass potential  is  needed. 
The Commission will therefore strengthen modelling and data via the Knowledge Centre 
for Bioeconomy and use this evidence to guide demand side measures. 

Many  regions  already  combine  economic  use  and  ecological  care  —  rewetting  drained 
lands,  reducing  fire  risks,  or  turning  low-value  wood  into  new  products.  Sharing  these 
experiences  across  borders  helps  everyone  learn  faster.  Because  many  sectors  draw  on 
shared feedstocks, the Commission will convene producers, processors and industrial 
users to discuss supply outlooks, including dual-use flexible crops, and facilitate scaling 
up  approaches  that  combine  production  with  restoration,  including  paludiculture  in 
wetlands  or  valorisation  of  low-value  wood  to  create  new  income  sources  and  prevent 
forest  fires.  The  Commission  will  also  build  consensus  through  voluntary,  bottom-up 
approaches,  including  a  voluntary  benchmarking  system  for  on-farm  sustainability 
assessments and cooperation with Member States and partners such as Forest Europe, FAO 
and IFAD to strengthen sustainable forest management in a way that recognises regional 
diversity  and  long-standing  practices.  Consensus  building  will  be  supported  through 
continued cooperation with Member States, researchers, and stakeholders, including 

38       Secondary biomass includes biomass from by-products or side streams from product manufacturing processes, bio-
waste, livestock waste, recovered post-consumer wood, paper and cardboard and any other biomass recovered from 
end-of-life bio-based products. 

15 

 
 
 
 
 
through  the  pan-European  Forest  Europe  process.  The  bioeconomy  will  also  rely  on 
foresight. Better monitoring, anticipation of climate and market risks, and a readiness to 
adapt  will  help  Europe’s  value  chains  stay  stable  even  in  uncertain  times.  To  enhance 
resilience, the Commission will conduct a risk analysis of biomass supply chains and 
support the use of Copernicus open monitoring data for biomass supply assessment. 

3.3.  Primary biomass supply 

is  where 

the  bioeconomy  begins,  and  sustainability  and 
Primary  production 
competitiveness  can  go  hand  in  hand.  Farmers,  foresters  and  fishers  manage  Europe’s 
living  resources,  balancing  productivity  with  care  for  land  and  water.  Their  daily  work 
underpins food security, renewable materials and rural livelihoods. 

In  forests,  locally  adapted  sustainable  management  can  provide  long-term  supply  to 
industry while maintaining a resilient carbon sink.  

In  agriculture,  circular  and  sustainable  approaches  strengthen  soil  fertility  and  reduce 
costs. The current and future CAP will support farmers who adopt bioeconomy innovation 
as well as sustainable and regenerative practices, diversify income sources, and cooperate 
in emerging value chains. 

Aquatic  resources  can  also  contribute  to  a  more  diverse  and  resilient  biomass  supply 
while  protecting  vulnerable  ecosystems.  The  EU  Aquaculture  Guidelines  and  the  EU 
Algae Initiative support the production and valorisation of algae and bivalves, while the 
Ocean Pact will launch an EU blue bioeconomy innovation initiative to unlock under-used 
aquatic  biomass  side  streams  and  develop  marine  value  chains,  including  through  the 
valorisation of side streams such as fish trimmings or shells.  

Water resilience is essential to the bioeconomy. Integrated water management, efficiency 
measures  and  climate-risk  assessments  should  be  embedded  in  investment  decisions, 
following the approach set out in the Water Resilience Strategy. Healthy soils and balanced 
water cycles are the quiet foundations of long-term productivity and climate stability. 

Nature itself can become part of Europe’s competitiveness. Emerging markets for carbon 
and biodiversity credits can reward those who restore and protect natural capital, giving 
new  income  to  rural  areas.  To  this  end,  the  Commission  is  adopting  carbon  farming 
methodologies and is establishing an EU registry under the CRCF Regulation. Moreover, 
the Commission is implementing the Nature Credits Roadmap to guide voluntary, high-
integrity  markets  that  complement  carbon  farming.  To  create  predictable  demand  for 
results-based schemes and stimulate private investment, it will establish an EU Buyers’ 
Club,  ensuring  fair  opportunities  and  competitiveness  for  producers.  This  voluntary 
initiative  will  provide  a  clear  demand  signal  for  carbon  farming  and  permanent  carbon 
removals  under  the  CRCF  Regulation.  By  pooling  voluntary  demand  from  private 
companies, it will help generate new revenue streams for European farmers and foresters, 
support resilient biomass value chains, and underpin corporate commitments. To further 
simplify the participation of farmers and forests in the voluntary carbon farming market, 
the Commission will establish an EU carbon farming database of models, emission factors, 
remote  sensing  products  and  benchmarking  datasets  that  will  reduce  monitoring  and 
administrative costs.   

16 

 
 
 
 
 
 
 
 
 
 
Finally,  knowledge  remains  the  bridge  between  science,  policy  and  practice.  The 
Commission  will  create  an  EU-wide  knowledge  repository  offering  practical,  locally 
adapted  guidance  for  farmers,  foresters  and  land  managers  to  improve  productivity, 
resilience and the delivery of ecosystem services. 

4.  HARNESSING GLOBAL PARTNERSHIPS AND OPPORTUNITIES  

Across the world, the bioeconomy is gaining momentum. Over 50 countries have adopted 
bioeconomy  strategies39.  In  a  context  of  climate  change,  increasing  pressure  on  natural 
resources, and intensifying competition for biomass, global alignment on what constitutes 
a sustainable bioeconomy is important. Strategic partnerships should also foster open and 
predictable  market  access  for  EU  bio-based  products,  supported  by  cooperation  on 
standards and reducing unnecessary trade barriers. The EU intends to enter into strategic 
partnerships regarding the bioeconomy, including with main global suppliers of biomass. 
The  aim  is  to  support  continued  trade  in  sustainable  biomass,  materials  and  bio-based 
solutions, in a way that is predictable for operators and respectful of local conditions. 

4.1.  Facilitate wider access to global markets for the EU’s bio-based technologies, 

innovations, biomaterials and applications 

Europe can scale up exports of bio-based technologies, materials, products, applications, 
and circular innovations. To this end, EU industry needs  fair market  access  conditions, 
and,  in  parallel,  exports  need  to  be  monitored  to  avoid  biomass  scarcity  and  negative 
impacts  on  ecosystems.  The  EU  is  competing  globally  for  sustainable  biomass. 
Diversifying sources, while maintaining strong domestic supply, will be important to avoid 
over-reliance on single suppliers and exposure to volatility.  

Trade agreements, partnerships and regulatory dialogues will be used to support balanced 
market access for bio-based products and technologies. At the same time, growing demand 
for biomass and the expansion of global markets for bio-based products should be managed 
to avoid negative environmental or social impacts abroad. Trade in biomass and bio-based 
products should be consistent with broader environmental and developmental objectives. 
These are to be reinforced by consistent and transparent information systems that support 
traceability and market confidence, such as under the European deforestation legislation. 

The  Global  Gateway  strategy  offers  a  framework  to  link  investment  in  resilient  supply 
chains with knowledge exchange and innovation cooperation to help them develop strong 
and  sustainable  bioeconomy  sectors  of  their  own  and  improve  their  access  to  global 
markets  as  potential  suppliers.  Partnerships  will focus  on  building  local  value  addition, 
skills, and resilient supply systems in partner countries. In Africa, where the EAC Circular 
Economy  Action  Plan40  and  the  EAC  Regional  Bioeconomy  Strategy41  were  recently 
adopted, the Global Gateway already supports projects building local capacity, creating 
jobs  and  promoting  responsible  use  of  resources.  Platforms  such  as  the  International 
Bioeconomy Forum (IBF) and the African Union- European Union (AU-EU) High Level 
Policy Dialogue on Science, Technology and Innovation will continue to support exchange 
and cooperation on research and innovation. The EU will support the development of bio-

39   Gardossi et al, Bioeconomy national strategies in the G20 and OECD countries: Sharing experiences and comparing 

existing policies, 2023  

40   https://au.int/sites/default/files/documents/45336-doc-GIZ-AU_Continental_Circular_Action_V11.pdf  
41   Final-Summary-EAC-BIOECONOMY-STRATEGY.pdf    

17 

 
 
 
 
 
based value chains globally, including in selected African countries, in a manner adapted 
to local conditions.     

4.2. 

Shaping the global sustainable bioeconomy agenda  

A common understanding between the EU and its main international and trading partners 
is  important to  facilitate private investment,  dialogues  at  an early stage,  cooperation on 
research and innovation, regulatory convergence, and sustainability goals, for instance on 
sustainable agriculture, fisheries, aquaculture and forestry. The EU will continue to engage 
in  main  international  fora  where  the  international  playing  field  for  the  bioeconomy  is 
developed and continue advocating for and working to achieve the related goals and targets 
in  the  2030  Agenda  for  Sustainable  Development,  the  Kunming-Montreal  Biodiversity 
Framework, the Paris Agreement and other multilateral environmental agreements. 

The  EU  will  strengthen  its  partnership  role  in  shaping  the  international  bioeconomy 
agenda,  including  through  engagement  with  international  organisations  (such  as  FAO). 
The EU will build stronger partnerships with non-EU countries to discuss the benefits and 
trade-offs, work towards interoperability  and facilitate common projects42. The EU will 
build on existing work such as the G20 High-Level Principles on Bioeconomy, developed 
during  the  G20  Presidency  of  Brazil,  or  the  Aspirational  Principles  and  Criteria  for  a 
Sustainable  Bioeconomy43,  developed  within  FAO,  to  work  with  partners  towards 
convergence on data, best practices, parameters and standards to promote sustainable trade.  

EU candidate countries and immediate neighbours are partners of strategic importance for 
the EU, and their integration into EU bio-based value chains  contributes to establishing 
regional bioeconomy hubs, diminishing reliance on external raw materials, and enhancing 
EU's strategic autonomy.  

The EU will launch a research and innovation initiative to develop and deploy sustainable 
bioeconomy  solutions  in  regions  with  high  biomass  potential,  including  in  BIOEAST 
countries, Moldova, Ukraine and the Western Balkans. This initiative will mobilise capital 
and strengthen industrial ecosystems beyond EU borders for the benefit of Member States 
and  EU  accession  countries  and  ensure  that  all  efforts  are  underpinned  by  robust 
environmental and social safeguards.  

5.  JOINING  FORCES  FOR  DELIVERY:  MEMBER  STATES,  INDUSTRY,  INVESTORS  AND 

CIVIL SOCIETY  

Member  States  and  stakeholders  are  key  partners  in  translating  the  EU  bioeconomy 
strategy into action and in creating synergies with regional and national strategies. Regions 
and  municipalities  are  central  to  implementation,  as  many  bioeconomy  solutions  scale 
through  local  value  chains  and  municipal  procurement.  Farmers,  foresters,  fishers, 
industry, investors – both private and public – public authorities at regional and local level, 
and civil society will be closely associated to the implementation of this strategy. 

The development of the EU’s bioeconomy must build on Europe’s existing strength in this 
sector  and  recognise  regional  differences.  Member  States  differ  widely  in  biomass 

42    For example, at FAO, the EU has launched together with Brazil a  Group of Friends of the Bioeconomy, on  17 

October 2025. 

43     https://openknowledge.fao.org/server/api/core/bitstreams/92d6ae7c-2257-427f-a5a1-1f1223c89a47/content 

18 

 
 
 
availability,  ecosystem  health,  industrial  capacity,  innovation  ecosystems,  and  market 
maturity. Member States will also be encouraged to define national bioeconomy strategic 
profiles,  for  example  as  primary  biomass  producers,  high-value  processors,  blue 
bioeconomy frontrunners, or bio-based innovation hubs and to integrate them into their 
National and Regional Partnership Plans and their National Energy and Climate Plans. The 
EU  bioeconomy  dialogues  with  Member  States  will  be  building  on  the  European 
Bioeconomy Policy Forum44, supported from 2027 by a Bioeconomy Policy Support Hub45 
and contributions from the European Board for Agriculture and Food (EBAF).  

To train their work force for the bioeconomy and align labour market needs with emerging 
opportunities, Member States and regions are encouraged to promote bioeconomy-related 
education, training, and re-/up-skilling programmes for workers and job seekers alike. The 
Circular  Economy  Stakeholders  Platform46  and  the  future  Bioeconomy  Stakeholder 
Network   will join forces to bring together primary producers, industry, investors and civil 
society  and  to  nurture  links  to  initiatives  such  as  the  Trusted  Investors  Network  of  the 
European Innovation Council and the youth dialogue through the EU Bioeconomy Youth 
Ambassadors programme47. In addition, the links will be strengthened across specific EU 
education  initiatives  relevant  to  the  bioeconomy,  such  as  European  Bioeconomy 
University, BIOEAST Uninet, the Global Bioeconomy Alliance, and Global Bioeconomy 
Youth Champions.  

The European Commission will continue to improve monitoring of the EU bioeconomy 
through  its  EU  Bioeconomy  Monitoring  System,48  and  cooperate  with  countries  and 
regions within the EU and internationally. 

6.  CONCLUSION 

Europe  has  the  knowledge,  the  industrial  base  and  the  people  to  lead  the  global  shift 
towards a sustainable and competitive bioeconomy. By reducing strategic dependencies on 
fossil-based  and  imported  raw  materials,  and  by  diversifying  supply  chains  built  on 
renewable and circular resources, the bioeconomy will also reinforce Europe’s economic 
and resource security in a more uncertain world. 

Delivering this vision will require coordinated action at EU, national and regional level. 
By working together, we can turn Europe’s biological resources into engines of growth 
and resilience, support strategic autonomy, and build a fair transition that leaves no region 
behind. The Commission will report on the delivery of the strategy by 2028. 

A strong European bioeconomy is not only an environmental imperative; it is a strategic 
investment in Europe’s long-term prosperity, resilience and security. 

44   European Bioeconomy Policy Forum - Research and innovation  
45   The Bioeconomy Policy Support Hub will kick-start in 2027 based on Horizon Work Programme in 2026. 
46   Homepage | European Circular Economy Stakeholder Platform  
47     Bioeconomy Youth Ambassadors - Research and innovation 
48    Trends in the EU bioeconomy - update 2024. JRC Publications Repository - Trends in the EU 

bioeconomy - update 2024 

19 

 
 
 
 
 
 
 
ANNEX: Key Actions and Timeline 

SCALING UP INNOVATION AND INVESTMENTS: FROM LAB TO DEPLOYMENT 

Adopt Biotech Acts  

Actions 

Establish a European Bioeconomy Regulators and Innovators’ Forum 

Adopt  standardisation  requests  for  doors  &  windows,  structural  timber 
products/elements and ancillaries, wood-based panels and elements, thermal 
insulation products under the Construction Products Regulation 

Timeline 

 2025 
3Q 2026 

1Q2026 

2026 

Support  co-operation  of  primary  producers  to  drive  joint  investments  in 
innovative bio-based value chains through CAP investment support, sectoral 
interventions and the European Innovation Partnership  

2026 

Launch of a European Bioeconomy Investment Deployment Group  

2026-2028 

Review the current CBE JU partnership arrangement, and identify the most 
effective  and  impactful  future  collaboration  options  under  the  next  Multi-
Annual Financial Framework 

Ensure  that  sustainable  biomanufacturing  and  other  bio-based  economic 
activities are appropriately recognised in the upcoming revisions of the EU 
Taxonomy Delegated Acts 

2026-2028 

2026-2028 

Revise  the  Recommendation  on  the  use  of  Environmental  Footprint  (EF) 
methods and provision of data 

4Q2026 

DEVELOPING LEAD MARKETS FOR MATERIALS AND TECHNOLOGIES 

Actions 

Analysis and exchange of best practices on cascading use with a community 
of practitioners within the EC Knowledge Centre for Bioeconomy 
The Energy Union package for the decade ahead will take into account the 
experience gained by the implementation of the RED Directive including its 
sustainability  and  greenhouse  gas  emissions  saving  criteria,  and 
technological developments in energy from renewable sources. 

Publish a report, in line with Article 3(3) RED, on the impact of Member 
States’ support schemes for biomass, including on biodiversity, climate and 
the environment, and on possible market distortions. 
Adoption of criteria and targets for bio-based plastics under the Packaging 
and Packaging Waste Regulation 
ESPR delegated acts on eco-design requirements for textiles and furniture, 
as announced in the first ESPR working plan 
Continue standardisation work for bio-based construction products under the 
Construction Products Regulation 
Support  the  development  of  industrial  symbiosis  valleys  and  bioeconomy 
hubs 

Timeline 

2026-2027 

2026 

2027 

2027 

2027-2028 

2026 

As of 2026 

20 

 
 
 
 
 
Launch  the  Competitiveness  Coordination  Tool  including  voluntary  ‘Bio-
based Europe’ Alliance 
Certification methodology for long-lasting carbon storage in buildings under 
the Carbon Removals and Carbon Farming (CRCF) Regulation 
Improve green public procurement requirements and create lead markets for 
bio-based materials and clean strategic technologies through the revision of 
the EU public procurement legislation 

4Q2026 

2026 

Rolling 

SECURING  LONG-TERM  PROSPECTS  FOR  THE  BIOECONOMY:  SUSTAINABLY  SOURCED 
BIOMASS 

Actions 

Exchange  good  practices  for  local  circular  uses  of  animal  by-products 
supported under the CAP network 
Support biogas and biomethane production valorising bio-waste and residues 
and  enabling  the  use  of  the  co-produced  digestate  as  bio  based  fertilising 
products through a tripartite agreement 
Assess best bioeconomy practices and innovations to increase nitrogen use 
efficiencies in bioeconomy systems and value networks 
Issue guidance on circular business models 

Improve data and modelling for monitoring biomass availability (relying on 
the Commission’s Knowledge Centre for Bioeconomy) 
Launch  of  the  blue  bioeconomy  innovation  initiative  and  related  Horizon 
Europe funding 
Incentivise  data-driven  approaches  to  the  development  of  a  sustainable 
bioeconomy:  integration  of  Earth  Observation  (EO)  data  to  monitor 
sustainable  biomass  availability  and  related 
land-use  changes  and 
biodiversity concerns.  
Develop an EU-wide repository of knowledge with practical, locally adapted 
guidance  to  support  farmers,  foresters,  and  land  managers  in  improving 
biomass  productivity,  resilience  to  extreme  weather,  and  the  delivery  of 
ecosystem services, including under the Mission Soil  

HARNESSING GLOBAL PARTNERSHIPS AND OPPORTUNITIES  

Actions 

Use the EU free trade  agreements and other partnerships and international 
fora  to  advance  cooperation  on  expanding  market  access  for  sustainable 
bioeconomy  solutions.  Identify  and  address  regulatory  and  technical  trade 
barriers to support investment in bio-based sectors 
Work with  selected  partner countries to  promote European innovation and 
build  strategic  partnerships  and  facilitate  investments,  including  through 
Clean Trade and Investment Partnerships and Global Gateway. 
Advance global cooperation and streamline global governance on sustainable 
and circular bioeconomy,  

Timeline 

2027 

2026 

As of 2026 

2027 

As of 2026 

2026-2027 

2027 

By 2030 

Timeline 

Rolling 

2026-27 

Rolling 

21 

 
 
JOINING FORCES FOR DELIVERY: MEMBER STATES, INDUSTRY, INVESTORS AND CIVIL 
SOCIETY  

Actions 

EU bioeconomy dialogues with Member States on the implementation of the 
EU  bioeconomy  strategy,  mobilisation  of  the  Circular  Economy  and 
Bioeconomy Stakeholder Platforms, the European Board for Agriculture and 
Food (EBAF) and EU Bioeconomy Youth Ambassadors Programme.  
Monitoring of the EU bioeconomy through the EU Bioeconomy Monitoring 
System economic and environmental aspects. 

Timeline 

As of Q12026 

As of 2026 

22