Bioeconomy in the EU: the new strategy is being implemented
At the end of November 2025, the European Commission presented a new bioeconomy strategy to stimulate green growth, competitiveness and resilience across Europe. The first milestones are starting to take shape.
Using renewable biological resources (plants, fungi, animals, microorganisms), the bioeconomy is based on transforming biomass, bio-manufacturing, and biotechnology. It thereby contributes to progressing towards a more circular and low-carbon economy. While bio-based products are already used in various sectors (pharmaceuticals, cosmetics, plastics, construction, textiles, fertilisers…), vast potential remains.
The new strategic framework put forward by the Commission aims to unlock this potential by focusing on four complementary axes: scaling up innovation and investment, developing lead markets for bio-based materials and technologies, ensuring a sustainable supply of biomass, and harnessing global opportunities.
Increasing innovation
To make bio-based innovations a reality on the ground, the new strategy highlights the need to create a “coherent and simplified” regulatory framework that rewards sustainable circular business models while safeguarding EU safety standards. In addition to specific focus on EU funding in the area, it notably proposes to convene a “deployment group for investments in the bioeconomy”, responsible for creating a pipeline of bankable projects, sharing risk more effectively, and attracting private capital.
On 10 March, a call for interest was launched inviting stakeholders (national development banks, private financial institutions, investors) wishing to participate in this European group alongside the Commission and the EIB group to do so. Let us recall that in the autumn the EIB group published a report highlighting both the scale of investment opportunities and the persistence of funding gaps, particularly for demonstration facilities and pioneering industrial installations(1).
Developing markets
To enable promising markets to be developed the Commission has drawn up a list of innovative markets for bio-based materials and technologies (plastics, fibres, textiles, chemical products, fertilisers, plant protection products, construction materials, biorefineries, advanced fermentation, permanent storage of biogenic carbon. It aims to stimulate demand for bio-based content in products, particularly through setting specific targets in legislation. It should also promote the creation of an alliance for a bio-based Europe, the idea being to bring together companies willing to collectively purchase bio-based solutions.
Ensuring sustainable use of biomass
Even though Europe is self-sufficient in biomass (90%), it must ensure that it is managed responsibly, whether it relates to forests, soils, ecosystems or water. It should also promote circularity and enhance the value of secondary biomass (i.e. agricultural residues, by-products and organic waste). In this regard, the Commission plans to implement initiatives that reward farmers and foresters who protect soils, enhance carbon sinks, and support sustainable biomass use.
Exploiting global opportunities
The EU is looking to help European industry access global markets. This will notably involve establishing specific partnerships to reduce vulnerability but also closely monitoring that Europe is not dependent on a single region or a single resource.
Approval by the EU Council
The new European bioeconomy strategy places emphasis on both industrial deployment and market expansion as well as competitiveness and resilience. The Council of the EU (Council of EU Ministers) approved its conclusions regarding this new framework on 17 March. On this occasion, it specified that it particularly supports strengthening innovation and measures aimed at supporting investments in sustainable bio-based solutions, including faster approvals and simplified rules. It also indicated that it supports the ambition to take leading action on a global scale. However, with a view to creating predictable demand for sustainable bio-based materials and technologies, the Council stresses the need to define and strengthen high-potential sectors. It considers that these lead markets should be extended beyond those identified in the strategy and encompass shoes and textiles, paper, or even the blue bioeconomy, for example.
1) “Investment gaps to achieve sustainable targets in the bioeconomy , EIB, 38 p., 15 September 2025
The bioeconomy: a strategic opportunity for the 21st century
The bioeconomy is considered the fastest growing sector in the EU while preserving the environment and supporting circularity. In 2023, its total value was estimated at 2.7 trillion euros. It employed 17.1 million people (8% of jobs in the EU) who generated 863 billion euros in added value (5% of the EU’s GDP). R&D investments in related sectors reached 23.2 billion (9% of total R&D investments) in 2023. It should also be noted that patents in these fields accounted for 5% of all patents filed in the EU between 2008 and 2020.
Source: "A strategic framework for a competitive and sustainable EU bioeconomy", communication from the European Commission, 27 11 2025