Europe's Biobased Industry Needs Financial and Regulatory Boost
Amsterdam, Wednesday, 10 December 2025.
Europe must enhance support for biobased manufacturing to address climate change and lead in green innovation, facing competition from global bioeconomies.
The Urgent Call for Enhanced Support
A recent policy document issued by the Biobased Industries Consortium (BIC) underscores the urgent need for Europe to bolster financial backing and regulatory frameworks for biobased manufacturing. This initiative is pivotal for fostering innovation in the biobased sector, which is essential for addressing climate change and promoting sustainable industrial practices. The document indicates that the bio-economy in Europe has the potential to generate up to 1 million new jobs by 2030, highlighting its significance in both economic and environmental spheres [1].
Investment Gaps and Strategic Challenges
The BIC document identifies two critical investment gaps hindering the growth of biobased innovation: the transition from pilot to demonstration plants, and the transition to full commercial production. The former requires an investment of approximately €470-750 million annually, while the latter demands €1.6-2.6 billion per year. These financial challenges are compounded by structural obstacles such as long and inconsistent regulatory processes and fragmented national rules, which undermine Europe’s competitiveness [1].
Proposed Measures for Improvement
To overcome these challenges, BIC proposes several measures including the enhancement of awareness and accessibility of existing financial instruments, harmonization of pilot and demonstration initiatives across member states, and strengthening public-private partnerships like the Circular Bio-based Europe Joint Undertaking. Additionally, BIC suggests the creation of tailored risk-sharing mechanisms to attract private capital, along with European loan guarantees and mobilization of pension funds [1].
Global Competition and Strategic Opportunities
Europe’s global competitors, such as the United States, China, India, and Brazil, are rapidly advancing their bio-economies. With the current policy momentum in the US waning, Europe has a strategic opportunity to assume leadership in the biobased sector. However, this potential leadership role is contingent upon addressing the financial and regulatory barriers that currently impede progress [1].