A new study published today by the European Investment Bank (EIB) emphasizes the importance of expanding bio-based industries in the EU. The report shows that scaling these sectors can enhance Europe’s strategic autonomy and global competitiveness. It also highlights the potential for innovation, economic growth, and job creation, especially in rural and coastal regions.
The study, supported by the European Commission’s Directorate General for Research and Innovation, stresses that better access to finance—such as venture debt and early-stage investments—can accelerate the development of new technologies. These technologies use renewable natural resources to produce sustainable food, materials, and energy.
Researchers identified three key areas with strong growth potential: bio-based materials and chemicals, innovative food and feed ingredients, and bio-based soil nutrients and enhancers. The bioeconomy sector currently sustains over 17 million jobs in the EU, representing about 8% of the workforce. It plays a vital role in addressing food security, resource sustainability, and reducing dependence on fossil fuels.
Europe’s strong research base, skilled workforce, ample feedstock, and local demand position it well to lead in this sector. However, bureaucratic hurdles, fragmented markets, and slow regulatory processes hinder project scaling and funding. The study advocates for coordinated efforts, harmonized regulations, and innovative financing solutions to unlock investment.
Recommendations include creating a European bioeconomy booster program and expanding venture debt options under InvestEU guarantees. These measures align with the EIB’s Climate Bank Roadmap and the European Commission’s upcoming bioeconomy strategy.
EIB Vice-President Gelsomina Vigliotti stressed the importance of accelerating investment: “The bioeconomy is key to the green transition. Europe has the assets to succeed, but we need innovative financial approaches and collaboration to remove barriers and attract capital.”
Together, these efforts aim to position Europe as a leader in sustainable bio-based solutions, supporting its climate and economic goals.
