The Commission views the bioeconomy as essential for Europe’s prosperity, climate objectives and resource security. With an economic value of around €2.7 trillion and 17.1 million workers, the European bioeconomy is already one of the cornerstones of the green transition. However, the Commission argues that much of its potential remains untapped due to funding gaps, regulatory complexity and a lack of mature markets. The new strategy therefore opts for a combination of innovation, market stimulation and sustainable resource management.
Four priorities
The new framework focuses on four key areas of action:
- Scaling up innovation and investment – The Commission recognises that bioeconomy companies face two “valleys of death”: the leap from demonstration to first commercial production, and from niche production to full industrial scale. To address this, the EU will establish a Bioeconomy Investment Deployment Group, expand access to blended finance and simplify product authorisation procedures through the planned Biotech Acts (from 2026 onwards).
- Developing lead markets – The EU intends to prioritise sectors where biobased solutions can deliver rapid impact, including plastics and polymers, textile fibres, chemicals, construction materials, fertilisers, biostimulants and biopesticides. For these sectors, the EU will introduce harmonised definitions, sustainability criteria, standardisation efforts and potentially mandatory biobased content requirements.
- Ensuring a sustainable and robust biomass supply – The EU highlights that it is already 90% self-sufficient in biomass, but stresses that sustainable production and more efficient use remain crucial. Greater circularity, better utilisation of residues and improved monitoring of biomass flows will help shape future policy choices.
- International cooperation – Through strategic partnerships and trade agreements, the EU aims to open new markets for European biobased technologies while securing sustainable biomass supplies. The Commission emphasises that all international cooperation must align with climate, biodiversity and sustainability objectives. Action plan runs until 2028
The new Bioeconomy Strategy is accompanied by a detailed action plan that includes concrete steps such as:
- launching the Bio-based Europe Alliance (BEA) to pool €10 billion in collective demand for biobased products (2026)
- standardisation of biobased construction materials (from 2026)
- new ecodesign rules for textiles and furniture (2027–2028)
- reporting on national biomass policies and potential market distortions (2027)
- development of industrial “symbiosis valleys” (from 2026)
The Commission will report on progress in 2028.
Industry responds
The Bio-based Industries Consortium (BIC), the sector association behind the Circular Bio-based Europe Joint Undertaking (CBE JU), welcomes both the new strategy and the moment of its publication. However, BIC stresses that success will depend entirely on rapid and ambitious implementation.
According to BIC, the strategy provides a “solid analysis” of the barriers that hinder investment and market growth—particularly the two valleys of death that chronically slow the scale-up of innovative biobased technologies. The organisation therefore welcomes the Commission’s commitment to an action plan with clear timelines.
Nevertheless, BIC believes some of the proposed measures do not go far enough—especially regarding the creation of lead markets and support for the leap from demonstration to full-scale production. While the strategy introduces targets for biobased plastics and polymers, broader market incentives are needed for a genuine breakthrough, BIC argues.
Access to sustainable biomass is also highlighted by BIC. The organisation points to “clear evidence that the EU has sufficient biomass” to strengthen autonomy and competitiveness, including the sustainable use of first-generation biomass for non-food applications. Europe must therefore ensure access to all forms of sustainably sourced biomass.
BIC Executive Director Dirk Carrez urges the Commission to move quickly and underlines that industry stands ready to support implementation: “Time is money. We need to translate this strategy swiftly into concrete, bold and ambitious measures that stimulate market demand for biobased products and improve access to finance for innovative investments.”
For more information, see the European Commission’s website.
Image: Ugis Riba/Shutterstock
