The business case of tomorrow
The bioeconomy is unique in its ability to create new ecosystems and circular loops. For over 10 years, BIC has been nurturing new industrial ecosystems by bringing industries together in R&I projects. BIC’s membership has grown from around 30 to more than 300, providing a home for the different sectors. We also include academia, counting leading bioeconomy universities and Research and Technology Organisations (RTO) as Associate Members.
On the other hand, our sector often has longer investment periods and high research and development costs. In our sector, you build upon innovation gradually. Typically, there isn’t a “winner takes all” like in other markets, such as pharma or digital tech. These are just some of the factors that make it hard to attract large amounts of private finance for large-scale projects, such as venture capital.
Through our public-private partnership with the European Commission (Circular Bio-based Europe Joint Undertaking, CBE JU), we know the importance of having a long-term framework for investment on research, innovation and development. Currently, the European Commission and BIC (representing the private sector) have each committed €1 billion so far. We can already see and prove impact of the partnership. It has resulted in more than 200 R&I projects in Europe’s bio-based industries. Every €1 of public money has mobilised €3.50 of private money.
Other parts of the world envy the type of public-partnership we have with the Circular Bio-based Europe JU. We need to secure all its achievements beyond 2028 by providing a safe space for long-term R&D collaboration. Thanks to the success of the partnership, and all the other work that BIC does, we believe that we have made the business case for tomorrow’s investment for research, innovation and development in the bio-based industries.
The business case of today
However, now we must look together with the EU at how to make the business case for today. Whilst over 15 “first-of-its-kind” large scale biorefineries have been built, more focus should now be on how to replicate these with second and third biorefineries.
Continued investment for scaling up in Europe’s bioeconomy, particularly in the bio-based industries, is crucial.
It’s not a question of solely asking how to mobilise private and public investments, but also the legislative changes that can make investment more attractive. Policymakers could soon pave the way for that through, for example, the EU Bioeconomy Strategy, the Biotech Act and the Clean Industrial Deal. Future EU policies should help to strengthen the industrial dimension of bioeconomy and biomanufacturing.
Furthermore, the current geopolitical situation offers Europe an opportunity. With the US going back to a “drill baby drill” approach and the White House revoking the Executive Order on biomanufacturing, this presents Europe with a chance to be at the forefront to attract good business cases, investment and researchers. We must seize it with both hands.
The next five years will be crucial for industry and the bioeconomy. The bioeconomy is a strategic sector for Europe’s long-term competitiveness, sustainability and strategic autonomy.
While we congratulate ourselves on the progress made so far, we must work towards fully capitalising on our assets in the bioeconomy for the future.
1Today’s global bioeconomy is estimated to be valued at US$4-5 trillion, with growth potential to US$30 trillion by 2050” https://www.climatepolicyinitiative.org/publication/financing-a-sustainable-global-bioeconomy/
