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# 52012DC0060

**COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Innovating for Sustainable Growth: A Bioeconomy for Europe /\* COM/2012/060 final \*/**

  

COMMUNICATION FROM THE COMMISSION TO
THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL
COMMITTEE AND THE COMMITTEE OF THE REGIONS

Innovating for Sustainable Growth: A
Bioeconomy for Europe

Strategy
for "Innovating
for Sustainable Growth: A Bioeconomy for Europe"

1.
A bioeconomy strategy for Europe

In order to cope
with an increasing global population, rapid depletion of many resources,
increasing environmental pressures and climate change, Europe needs to
radically change its approach to production, consumption, processing, storage,
recycling and disposal of biological resources. The Europe 2020 Strategy calls
for a bioeconomy as a key element for smart and green growth in Europe.
Advancements in bioeconomy research and innovation uptake will allow Europe to
improve the management of its renewable biological resources and to open new
and diversified markets in food and bio-based products. Establishing a
bioeconomy in Europe holds a great potential: it can maintain and create
economic growth and jobs in rural, coastal and industrial areas, reduce fossil
fuel dependence and improve the economic and environmental sustainability of
primary production[1] and processing industries. The bioeconomy thus contributes
significantly to the objectives of the Europe 2020 flagship initiatives
"Innovation Union" and "A Resource Efficient Europe".

The Bioeconomy Strategy and its Action Plan
aim to pave the way to a more innovative, resource efficient and competitive society
that reconciles food security with the sustainable use of renewable resources
for industrial purposes, while ensuring environmental protection. They will
inform research and innovation agendas in bioeconomy sectors and contribute to
a more coherent policy environment, better interrelations between national, EU
and global bioeconomy policies and a more engaged public dialogue. They will
seek synergies and respect complementarities with other policy areas,
instruments and funding sources, which share and address the same objectives,
such as the Common Agricultural and Fisheries Policies (CAP and CFP), the
Integrated Maritime Policy (IMP), environmental, industrial, employment, energy
and health policies.

The Strategy builds on the Seventh
Framework Programme for Research and Technological Development (FP7) and the EU
Framework Programme for Research and Innovation (Horizon 2020). More detailed
information on the Bioeconomy Strategy is included in the accompanying Staff
Working Document (SWD).

1.1.
What are the stakes?

Europe is confronted with an unprecedented
and unsustainable exploitation of its natural resources, significant and
potentially irreversible changes to its climate and a continued loss in
biodiversity that threaten the stability of the living systems on which it
depends. This is exacerbated by a world population expected to increase by more
than 30% in the next 40 years, from 7 billion in 2012 to more than 9 billion in
2050. Overcoming these complex and inter-connected challenges requires research
and innovation in order to achieve rapid, concerted and sustained changes in
lifestyle and resource use that cut across all levels of society and the
economy. The welfare and well-being of Europe's citizens and that of future
generations will depend on how the required transformations will be made.

Over the last decades, many policies have
been put in place or revised by the EU to tackle these challenges and drive the
transformation of the European economy. However, the complex inter-dependencies
that exist between challenges can lead to trade-offs, such as the controversy
about competing uses of biomass. The latter arose from concerns about the
potential impact on food security of the growing demand for renewable
biological resources driven by other sectors, the use of scarce natural
resources and the environment in Europe and third countries. Addressing such
multi-dimensional issues requires a strategic and comprehensive approach
involving different policies. Well-informed interaction is needed to promote
consistency between policies, reduce duplication and improve the speed and
spread of innovation. In particular, more interaction and better alignment is needed between EU research and innovation and the priorities of bioeconomy supporting policies.

The bioeconomy provides a useful basis for
such an approach, as it encompasses the production of renewable biological
resources and the conversion of these resources and waste streams into value
added products, such as food, feed, bio-based products[2] and
bioenergy. Its sectors and industries[3] have strong
innovation potential due to their use of a wide range of sciences, enabling and
industrial technologies[4], along with local and tacit knowledge.

1.2.
Tackling societal challenges

The bioeconomy's cross-cutting nature
offers a unique opportunity to comprehensively address inter-connected societal
challenges such as food security, natural resource scarcity, fossil resource
dependence and climate change, while achieving sustainable economic growth.

Ensuring food security

Global population growth by 2050 is estimated
to lead to a 70% increase in food demand, which includes a projected twofold
increase in world meat consumption. The Bioeconomy Strategy will contribute to
a global approach in meeting this challenge by developing the knowledge-base
for a sustainable increase in primary production, taking into account all
options from cutting-edge science to local and tacit knowledge. It will also
encourage changes in production and consumption patterns and the development of
healthier and more sustainable diets.

The EU food manufacturing sector and
households alone waste about 90 million tonnes of food annually or 180 kg per
person, not taking into account losses in agriculture and fisheries. The
Strategy will support more resource-efficient food supply chains in line with
the Roadmap to a Resource Efficient Europe and the Blue Growth Initiative.

Managing natural resources sustainably

Agriculture, forestry, fisheries and
aquaculture require several essential and limited resources to produce biomass.
These include land, sea space, fertile and functioning soils, water and healthy
ecosystems, but also resources such as minerals and energy for the production
of fertilisers. Their use also involves significant opportunity costs linked to
the depletion or loss of ecosystem services. As competing uses of biomass and
the legacy of past exploitation place these resources under severe pressure,
the EU needs to produce "more with less" and develop smart
sustainable farming, fisheries and aquaculture.

The Bioeconomy Strategy aims to improve the
knowledge base and foster innovation to achieve productivity increases while ensuring
sustainable resource use and alleviating stress on the environment. Declining
biodiversity can significantly degrade the quality of resources while constraining
the yields of primary production, particularly in forestry and fisheries. The
Strategy will thus support the implementation of an ecosystem-based management.
It will seek synergies and complementarities with the CAP, the CFP, the IMP and
EU environmental policies on resource efficiency, sustainable use of natural
resources, protection of biodiversity and habitats, as well as provision of
ecosystem services.

Global challenges demand global solutions.
The Bioeconomy Strategy will support a global approach to more sustainable
resource use. This will include developing an internationally shared
understanding of biomass sustainability and best practices to open new markets,
diversify production and address long term food security issues.

Reducing
dependence on non-renewable resources

The European
economy relies heavily on fossil resources as carbon and energy sources, making
it vulnerable to insecure and dwindling supplies and market volatility. To
remain competitive, the EU needs to become a low carbon society where resource
efficient industries, bio-based products and bioenergy all contribute to green
growth and competitiveness.

The
Bioeconomy Strategy will include the results of the Lead Market Initiative on
Bio-based Products and support the Blue Growth initiative, the Renewable Energy
and Fuel Quality Directives' targets and the Strategic Energy Technology plan
by improving the knowledge-base and fostering innovation for producing quality
biomass (e.g. industrial crops) at a competitive price without compromising
food security, adding pressure to primary production and the environment, or
distorting markets in favour of energy uses. Furthermore, it will help
understand current and future biomass availability and demand and competition
between biomass uses, including their climate change mitigation potential, in
order to ensure the long-term success of the bioeconomy. This includes making
alternative sources of carbon and energy more accessible (e.g. agricultural and
forestry residues, wastes) and driving research into renewable resources, such
as microalgae.

Mitigating and adapting to climate
change

As global demand for biomass for food and
industrial purposes grows over the coming decades, EU agriculture, forestry, fisheries
and aquaculture capacity will need to be sustainably increased. The Bioeconomy
Strategy supports the development of production systems with reduced greenhouse
gases (GHG) emissions, adapted to and mitigating the adverse impacts of climate
change, such as droughts and floods. It will thus contribute to the objectives
of the Roadmaps for moving to a low-carbon economy in 2050 and to a Resource
Efficient Europe, as well as to the EU climate change policy. This will include
increased carbon sequestration in agricultural soils, sea beds and the
appropriate enhancement of forest resources.

The EU pulp and paper, chemical and food
industries emit significant amounts of GHG, but also store important amounts of
carbon in their products. The Strategy will also promote the substitution of
carbon, energy and water intensive production processes by more resource
efficient and environmentally friendly ones wherever possible. The partial
replacement of non-renewable products by more sustainable bio-based ones should
be pursued.

Creating jobs and maintaining European
competitiveness

The EU's bioeconomy sectors are worth € 2
trillion in annual turnover and account for more than 22 million jobs and
approximately 9% of the workforce. However, in order to remain competitive and
maintain jobs in the light of major societal challenges and rising markets in
the developing world, the European bioeconomy sectors need to innovate and
further diversify. Significant growth is expected to arise from sustainable
primary production, food processing and industrial biotechnology and
biorefineries, which lead to new bio-based industries, transform existing ones,
and open new markets for bio-based products. New high skilled jobs and training
options need to be developed to meet labour demands in these industries, as
well as in agriculture, forestry, fisheries and aquaculture.

It is estimated that direct research
funding associated to the Bioeconomy Strategy under Horizon 2020 could generate
about 130 000 jobs and € 45 billions in value added in bioeconomy sectors by
2025[5]. Further growth is expected from other – direct and indirect –
public and private investments in all parts of the bioeconomy. It can be
expected that bioeconomy sectors will significantly contribute to achieving the
Europe 2020 objectives.

1.3.
Developing a coherent bioeconomy

Specific actions are needed to maximise the
impact of bioeconomy research and innovation. In line with the recommendations
of the public consultation on the bioeconomy, a more
coherent policy framework, increase in research investments, development of
bio-based markets and better communication with the public should be
prioritised[6].

Coherent policy

The bioeconomy encompasses a wide range of
established and emerging policy areas at global, EU, national and regional
level which share and adhere to its objectives, yet result in a complex and
sometimes fragmented policy environment. The Bioeconomy Strategy calls for a more informed dialogue, in particular on the role of scientific
advancement, and better interaction between existing bioeconomy-supporting
policies at EU and Member States level (see Action 5). This will provide
stakeholders with a more coherent policy framework and encourage private
investment. Furthermore, information systems will need to be created, building
on existing but often unconnected databases, to monitor the progress of the
bioeconomy (see Action 6).

The Bioeconomy Strategy will support better
alignment of EU research and innovation funding with
established priorities of bioeconomy-related policies. In the same way, it will
ensure that innovation is taken into account at the onset of policy
development. The upcoming European Innovation Partnerships (EIPs) will have a
key role in this respect, as will Joint Programming Initiatives (JPIs). A
bioeconomy dialogue that improves the knowledge base and fosters informed
interaction between policy measures at EU, Member State and regional level will
also provide further stimulus for growth and incentives for investments (see
Action 2).

The global dimension of the societal
challenges that the bioeconomy is addressing requires reinforced cooperation at
international level. The Bioeconomy Strategy will assist Europe in taking a
leading role in promoting the transition towards a global bioeconomy. The
existing international cooperation on bioeconomy matters will need to be driven
by research and innovation and facilitate exchange of scientific knowledge and
sharing of best practices on global issues and policy areas, in particular
regarding food security, climate change, environment and resources, capacity
building and trade (see Action 8).

Investment in knowledge, innovation and skills

The bioeconomy requires continued and
increasing support from public funding and private investment and must
contribute to better coherence between national, European and global research
and innovation efforts. Research and the application of its results are often
disconnected due to an information and knowledge gap and institutional and
conceptual barrier between researchers, innovators, producers, end-users,
policy-makers and the civil society. Knowledge transfer networks, knowledge and
technology brokers, as well as social enterprises, embedded in broader citizens
and stakeholder initiatives, can bridge these gaps. Many promising research
results also remain unexploited due to pending legislative issues and patenting.
Furthermore, more investment is needed for demonstration and scale-up
activities and the development of entrepreneurship and advisory services for
the whole supply chain. (See Actions 3 and 11)

The need to increase public funding for
bioeconomy research and innovation has been recognised under Horizon 2020:
Almost € 4.7 billion has been proposed for the Challenge “Food security,
sustainable agriculture, marine and maritime research, and the bioeconomy”[7]. There will be further support under elements of the Challenges "Climate
action, resource efficiency and raw materials", "Secure, clean and
efficient energy" and "Health, demographic changes and
wellbeing". The European Institute of Innovation and Technology (EIT) with
its Knowledge and Innovation Communities (KICs) in different areas will address
questions related to the bioeconomy, in particular under the proposed KIC
"Food4future". This will be complemented by research and innovation
in enabling and industrial technologies (e.g. biotechnology, nanotechnology and
ICT) and the promotion of emerging technologies. Providing stakeholders along
the entire bioeconomy value chain with the knowledge base and a toolbox that
includes a range of key enabling technologies will also be critical to the
implementation of a wide range of bioeconomy-related policies. (See Actions 1
and 2)

Several Member States have put in place
bioeconomy research programmes and agreed to improve coordination of their
research activities through public-public partnering, such as the JPI on
"Healthy and Productive Seas and Oceans". Active collaboration
between stakeholders is also needed to encourage more private investment and
entrepreneurship in Europe. This includes supporting initiatives to enhance
knowledge exchange, simplify European patent law and improve access to public
research results, but also the creation of Public-Private Partnerships (PPPs)
and the further development of EIPs, such as those on "Agricultural
Productivity and Sustainability" and "Raw Materials" (see
Actions 1 and 4).

Participative governance and informed
dialogue with society

A responsible bioeconomy calls for
participatory models that engage citizens and end-users in order to reinforce
the relationship between science, society and policy making. More informed
dialogues will allow science and innovation to provide a sound basis for policy
making and informed societal choices, while taking into account legitimate
societal concerns and needs in the bioeconomy.

A large majority of Europeans agree that
science and technology will offer more opportunities for future generations.
Yet, a significant information gap between science and society still exists.
Citizens need to be engaged in an open and informed dialogue throughout the
research and innovation process. They need to be provided with reliable insight
into the benefits and risks of innovative technologies and existing practices,
and more ample opportunities to debate new findings and their implications (see
Actions 2 and 5). The EIP on “Agricultural Productivity and Sustainability”
will play a crucial role in this respect.

Furthermore, citizens have to be provided
with more information about product properties and the impacts of consumption
patterns and lifestyle (for instance on the issue of waste), in order to enable
responsible and informed choices (see Action 12). Finally, citizens need to be
made aware of the opportunities of social innovation and be encouraged to take
initiatives.

New infrastructures and instruments

Enhancing a productive and sustainable bioeconomy
requires more research, rural, marine and industrial infrastructures, knowledge
transfer networks and improved supply chains. Among other objectives, this will
support integrated and diversified biorefineries, including small-scale local
plants (see Action 10). Petrochemical refinery processes produce a wide range
of products, fuels and energy from fossil resources. Biorefineries replace
these fossil resources by renewable ones (including wastes), creating new
sources of income and jobs for the agriculture, forestry, fisheries and
aquaculture sectors. Various funding sources, including private investments, EU
rural development or cohesion funds could be utilised to foster the development
of sustainable supply chains and facilities (see Action 7).

Bio-based products and bioenergy can be
"bio-based versions" of traditional products or novel products with
entirely new and innovative functionalities and potential for new and existing markets.
To exploit this, the EU is actively driving further development of clear and
unambiguous product standards and sustainability criteria at European and
international level. These are central for the functioning of the Single Market
and the further development of certification and labels that can promote consumer
uptake and green public procurement (see Action 11).

2.
The Bioeconomy Action Plan

The Action Plan below describes the
Commission's main actions for the implementation of the Bioeconomy Strategy
objectives, building on FP7, Horizon 2020 and other relevant existing policy
initiatives, such as the EIPs. It also invites Member States and stakeholders
to engage. A more detailed version of the Action Plan is included in the SWD[8].

2.1.
Investments in research, innovation and skills

1.
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.

2.
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.

3.
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.

4.
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.

2.2.
Reinforced policy interaction and stakeholder
engagement

5.
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.

6.
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.

7.
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[9] at
local, regional and national level to maximise the impact of existing funding
mechanisms.

8.
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.

2.3.
Enhancement of markets and competitiveness in
bioeconomy

9.
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).

10.
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).

11.
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.

12.
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.

[1]               Note: Primary production in the context of this
communication includes agriculture, forestry, fisheries and aquaculture.

[2]               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

[3]               The bioeconomy includes the sectors of agriculture,
forestry, fisheries, food and pulp and paper production, as well as parts of
chemical, biotechnological and energy industries.

[4]               The bioeconomy relies on
life sciences, agronomy, ecology, food science and social sciences,
biotechnology, nanotechnology, information and communication technologies
(ICT), and engineering.

[5]               Further details can be found in the accompanying SWD.
[Include reference number?]

[6]               Conclusions of the European Commission Public
Consultation "Bio-based economy for Europe: state of play and future
potential" (Feb-May 2011).

[7]               COM(2011) 809/3

[8]               Note: Individual actions may require a separate
Impact Assessment.

[9]               COM(2011) 615, Annex IV

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