Europe’s bioeconomy holds immense promise as a cornerstone of its green transition. By fostering sustainable production and consumption patterns, it addresses critical economic, environmental, and social challenges. Yet, realising the full potential of the bioeconomy requires overcoming regulatory, financial, and competitive hurdles, as well as effectively communicating its value to diverse stakeholders. Nicoló Giacomuzzi-Moore, Executive Director of the Circular Bio-based Europe Joint Undertaking (CBE JU), offers his insights into the importance of the bioeconomy, its global standing, and the road ahead.
Europe is at a critical juncture, facing escalating environmental crises, economic uncertainties, political unrest and growing social disparities. While a thriving bioeconomy offers a transformative pathway to address these interconnected challenges and drive progress toward sustainability, political shifts around the world may well see more governments focusing on different priorities in years to come.
The arguments for wholeheartedly pursuing investment into the bioeconomy in Europe are clear to Nicoló Giacomuzzi-Moore, Executive Director of the Circular Bio-based Europe Joint Undertaking (CBE JU) and they rest on the economic, environmental and societal benefits it delivers.
“The bioeconomy is unique because it touches every aspect of our lives – economic prosperity, environmental health, and social equality,” he says. “Harnessing its full potential is not just a matter of innovation but of creating a sustainable future for all.”
Giacomuzzi-Moore is the first to admit that “progress isn’t unfolding as we’d hoped” for Europe’s ambition to be climate-neutral by 2050 – an economy with net-zero greenhouse gas emissions – an ambition at the heart of the European Green Deal of which the bioeconomy is a central pillar. “Driving this transition toward climate neutrality by 2050 is a monumental task, especially in the face of unprecedented environmental challenges,” he says. “We’re living through the warmest years in recorded history, and progress isn’t happening as quickly as we’d hoped.
“But the bioeconomy has a unique ability to simultaneously impact economic, environmental, and social dimensions, making it one of our most powerful tools for this transition to get it back on track.”
From an economic perspective, the bioeconomy drives innovation, creating new markets and job opportunities in rural and urban areas alike. By developing bio-based alternatives to fossil-derived materials, it fosters resilience against resource scarcity and volatile energy prices. This economic shift is particularly important as Europe faces global competition and seeks to ensure a just transition that benefits all regions.
Environmentally, the bioeconomy is a critical part of Europe’s strategy to mitigate climate change and reduce biodiversity loss. It enables the replacement of fossil-based resources with renewable materials while promoting circularity. Initiatives like municipal organic waste conversion and agricultural residue processing minimise emissions, conserve natural resources, and support ecosystems. “For example, millions of tons of textile waste are generated annually, and their complex composition makes them difficult to recycle,” explains Giacomuzzi-Moore. “Bio-based solutions can significantly mitigate these issues while reducing pollution.”
Socially, the bioeconomy strengthens community resilience by localising supply chains and fostering economic participation. By leveraging regional resources, it addresses disparities between urban and rural areas, enhancing opportunities for workforce development and education in green technologies. “It’s not just about innovation; it’s about creating inclusive growth that empowers communities,” says Giacomuzzi-Moore.
Strategic role of the CBE JU
CBE JU operates as a public-private partnership, bringing together companies, research institutions, universities, and public authorities to scale up innovations. “Our funding focuses on moving technologies from the lab to demonstration phases and ultimately to industrial plants,” explains Giacomuzzi-Moore. “For every euro funded by the EU, the private sector contributes three. This amplifies our impact and showcases the private sector’s confidence in these initiatives.”
He highlights flagship projects as tangible examples of success in bringing research results to market. AfterBiochem, a biorefinery near the France-Luxembourg border, transforms sugar beet residues into organic acids used in cosmetics and food ingredients, reducing CO₂ emissions by 80 per cent compared to oil-based processes. In Zaragoza, Spain, another project converts municipal organic waste into bio-based plastics and fertilizers, offering a replicable model for cities.
“These projects embody the bioeconomy’s potential to integrate local resources, reduce emissions, and create sustainable products. They’re not just technological successes but also community-driven solutions,” he notes.
Europe’s global standing in the bioeconomy
Europe has long been a pioneer in green technologies, with initiatives like the Horizon funding programmes attracting additional investment to support the funding provided by the EU. However, Giacomuzzi-Moore acknowledges that the competitive landscape has shifted. “The U.S., under President Biden, advanced rapidly with the Inflation Reduction Act and biotech executive orders,” he says. “Similarly, countries like India, China, Japan, and Brazil are making significant investments. India’s $4 billion bioeconomy programme and Brazil’s biomass resources are just two examples of global progress.”
He warns that Europe must act decisively to maintain its leadership. “Companies we work with often face offers to relocate to regions with lower energy costs, fewer regulatory barriers, and centralised state investments. Europe needs to create an equally attractive environment to stay competitive.”
He cites the regulatory challenges and the changes now needed to its bioeconomy strategy as both a hinderance to progress and the solution. “Europe’s regulatory framework, while well-intentioned, has struggled to keep pace with technological advancements,” he says. “Current regulations, often designed for traditional industries like the chemical one, hinder innovation.
Permitting processes and standards need to be streamlined and aligned with bio-based technologies while we also need a unified bioeconomy strategy that coordinates across sectors like agriculture, forestry, and aquatic biomass.”
He outlines three key areas for improvement:
Regulatory clarity: Adaptable, sector-specific rules that match the pace of innovation.
Funding mechanisms: Enhanced access to co-financing instruments, including the European Investment Bank (EIB), national banks and venture capital.
Market access: Updated standards and labelling to emphasise environmental benefits, levelling the playing field for bio-based products.
Giacomuzzi-Moore believes the absence of a coordinated regulatory approach also creates fragmentation and uses the example of inconsistent permitting processes across EU member states as an example. “It slows the adoption of bio-based solutions,” he says. “Addressing these disparities is essential for accelerating innovation and scaling our green technologies.”
Funding and scaling the bioeconomy
Funding, of course, is the overarching motivation of the CBE JU, but despite the substantial funds it has at its disposal every year in its annual calls, demand far exceeds supply. “In 2023, we could only fund 31 out of 160 proposals. In 2024, that number doubled to 300 and we could still only fund 30 projects. Even projects with maximum scores often go unfunded,” he laments.
The funding gap highlights the need for complementary instruments. “National investment banks, venture capital, and public promotional banks like the EIB must play a more active role. Scaling these projects often requires investments far beyond initial grants, sometimes exceeding €150 million.”
Filling this gap is crucial not only to advance promising projects but also to prevent Europe from losing ground to competitors. Giacomuzzi-Moore calls for a comprehensive strategy that aligns public and private investments with Europe’s broader sustainability goals.
One area where he feels this is crucial is with standards. Once bioeconomy projects succeed in the lab or pilot stage, transferring them to industry faces another hurdle: market access. Bio-based products often compete against well-established, oil-based alternatives.
Current standards and metrics fail to account for environmental benefits, such as whether the CO2 originates from waste or crude oil. As a result, bio-based products are assessed on outdated criteria, limiting their competitiveness.
“Standardisation reform is crucial,” asserts Giacomuzzi-Moore “Updated standards and labelling that emphasise environmental benefits could create a level playing field for bio-based products. Additionally, such reforms would help address the cost disparity between bio-based and traditional products, as the latter benefit from decades of process optimisation and economies of scale.”
Communicating the bioeconomy
While filling the funding gap and implementing a favourable regulatory and standards framework are both part of Giacomuzzi-Moore’s bioeconomy wish list, there is one other critical feature of success in this sector that he feels is equally important – and that’s effective communication.
Whether that is telling a compelling story about a new bio-material, ensuring consumers understand what they are paying for or helping industry leaders make informed decisions about new technology, effective communication,” he feels, is critical for fostering trust and support among consumers, investors, industry and policymakers alike. “The narrative must be clear and science-backed,” he stresses. “It’s about showing how bioeconomy initiatives address environmental challenges and deliver tangible benefits.”
He points to Italy’s introduction of biodegradable plastic bags, when consumers rejected them as being not as good as previous bags and more expensive, as an example of poor communication leading to backlash. “Consumers needed to understand the advantages, why they were better for the environment and why they cost a little more,” he says.
“Meanwhile, educational efforts must extend beyond consumers to include universities and workforce training programmes,” he continues. “Building a robust knowledge base will support the long-term growth of the bioeconomy and ensure a pipeline of skilled professionals to sustain long-term growth. “Engaging youth is another priority. Initiatives like the Bioeconomy Youth Ambassadors tap into the passion and perspectives of younger generations, broadening the bioeconomy’s appeal.”
Ultimately, Giacomuzzi-Moore believes that the bioeconomy must be positioned as an economic opportunity through effective communication. Reports, such as those by Mario Draghi and the World Economic Forum, highlight the economic risks of inaction, while models predict catastrophic GDP losses by 2050 or 2070 if current unsustainable practices persist.
By contrast, investing in green transition offers a pathway to economic resilience and long-term growth. “The transition will require systemic changes, from updating funding mechanisms and standards to improving communication and fostering trust,” he says. The stakes – both environmental and economic – make the effort not only worthwhile but essential.”
The Future of Europe’s bioeconomy
Looking ahead, the CBE JU aims to build on its successes by scaling up market-ready solutions and engaging new stakeholders. “We’re focusing on demonstrators and expanding our ecosystem to include financial institutions and primary producers,” says Giacomuzzi-Moore. “Biomass availability and collaboration with agriculture, forestry, and aquaculture will be critical.”
The CBE JU’s relationship with industry will be crucial in achieving these aims – and here Giacomuzzi-Moore is optimistic. “In the beginning, it was primarily large companies, some SMEs, and research centres who joined the Bio-based Industries Consortium (BIC), CBE JU’s founding partner,” he explains. “Today, membership is expanding rapidly, with increased participation in projects and significant interest from large, well-known companies.
“We’ve recently seen L’Oréal join, alongside established members like Michelin and BASF. Other major players, including Cargill, Carlsberg, and Solvay, are also involved. These brand owners play a crucial role in market development. Imagine, for instance, replacing conventional plastics with bio-based alternatives – this kind of shift could transform entire industries.”
BIC held its General Assembly in December 2024, and openly asked members whether they wanted to pursue a new partnership after the current CBE JU ends. The overwhelming response was “yes” reflecting, Giacomuzzi-Moore believes, a shared belief in the importance of continuing to work with the European Commission to identify common ground and develop a renewed mandate. “Partnerships like ours have proven essential for scaling the bioeconomy from a niche sector into a vital contributor to the green transition.”
The mid-term evaluation of the CBE JU certainly seems to validate the relevance of its work, but challenges remain. Ensuring a level playing field for bio-based solutions while keeping consumers on board will require systemic changes. “The stakes are high,” says Giacomuzzi-Moore. “Reports predict catastrophic GDP losses if unsustainable practices persist. By contrast, investing in the green transition offers resilience and growth.
“The future of Europe’s bioeconomy is bright, but only if decisive action is taken,” he concludes. “With the right regulatory framework, funding mechanisms, and communication strategies, Europe can lead the way in creating a sustainable, circular economy that benefits all.”