From the forests of Finland to the coastal regions of Portugal, local industries, research centres and whole communities are turning to the bioeconomy as a blueprint for a more circular and resource-efficient future. There is a clear trajectory for the development and use of bio-based alternatives to fossil-based materials and products, but, as the European Regions Research and Innovation Network (ERRIN) affirms in a recent report, the regional and local authorities of Europe still need to be better supported for the bioeconomy to reach its full potential.
Europe’s bioeconomy is not a sideshow; it is already a vast and vital part of the continent’s economy. By 2021, it contributed around 5% of EU GDP and was worth an estimated €2.3 trillion – and things have been growing since. Its true potential, however, lies beyond these numbers: in its ability to reduce fossil dependency, strengthen Europe’s strategic autonomy and create local jobs rooted in renewable resources and sustainable production. As global competition intensifies, with the US and China accelerating their own bioeconomy strategies, the question is whether Europe can act fast enough to keep pace. ERRIN believes that unlocking the power of regions and cities will be key to this.
From policy ambition to place-based action
The European Union has made clear its commitment to the bioeconomy, with initiatives such as the EU Biotech and Biomanufacturing Initiative, the soon-to-be updated EU Bioeconomy Strategy, the EU Strategic Agenda 2024–2029, the Circular Bio-based Europe Joint Undertaking (CBE JU) for research funding and the Letta Report all highlighting its strategic importance. However, as ERRIN’s report notes, one critical dimension has been overlooked: the regional one. Innovation does not happen only in the EU institutions – it happens in territories, shaped by local and regional ecosystems, resources, skills and industries. Innovation is co-programmed at regional and local levels also thanks to the Smart Specialisation Strategies (S3).
“Achieving a circular, resource-efficient economy requires the engagement of European regions,” the report points out. “But this is a dimension which has not been stressed sufficiently.”
Indeed, many of Europe’s most promising bio-based opportunities are inherently regional: in forestry and wood-based industries, marine and coastal bioresources, agricultural residues and local biorefineries turning waste into value. Each of them depends on place-specific expertise and a strong collaboration between public authorities, research organisations and universities, industry, farmers, SMEs and local communities. Raising awareness and improving the science–policy dialogue will be essential. Without the support and facilitation of regional and local authorities, the development of innovative bioeconomy projects will face significant challenges, making it difficult for the sector to scale up and contribute effectively to the EU’s decarbonisation goals.
At the same time, strengthening skills systems – from vocational training to higher education – would help equip Europe’s workforce for the green jobs of the future.
Building regional innovation ecosystems to move from niche to norm
For the bioeconomy to flourish, ERRIN calls for stronger and more interconnected research and innovation ecosystems, deeply embedded in Europe’s regions and cities. These ecosystems are where innovation truly takes root – in clusters that link SMEs with universities, local governments and investors, often supported by Smart Specialisation Strategies and European partnerships.
To reinforce this, ERRIN proposes that the European Commission should:
- Build a future-proof and resilient European bioeconomy by fully utilising existing national and regional biomass information systems and sustainable management practices. By emphasising circularity, recycling and cascading use principles, regions can valorise local biowaste and by-products while ensuring sustainability within planetary boundaries.
- Support the scale-up of bio-based industries by creating a harmonised regulatory framework and a level playing field for bio-based products in the market. This should include incentives to generate demand for sustainable products and better use of territorial knowledge to identify and address bottlenecks that limit market access for circular bioeconomy applications.
- Link bio-based public procurement to the upcoming revision of the EU Public Procurement Directive, enabling regions and cities to generate stable demand for sustainable products and help innovative bio-based materials move from niche to mainstream markets. This would make public authorities key enablers in the market uptake of bio-based solutions.
- Support national and regional bioeconomy strategies to move from pilot projects to large-scale deployment, transforming bio-based products from “niche to norm.”
Bringing local and regional authorities into the fold
ERRIN also argues that future EU research and innovation calls should explicitly engage regional and local authorities, working alongside industrial ecosystems.
Strengthening place-based policymaking and funding synergies will make it easier for regions to play their full role in scaling up the bioeconomy.
Initiatives like the Regional Innovation Valleys for Bioeconomy and Food Systems should therefore be maintained and strengthened with sufficient financial support. These ecosystems foster collaboration between public and private actors at local levels, promote cross-regional partnerships and are instrumental in accelerating innovation and the deployment of circular bioeconomy solutions.
The Circular Cities and Regions Initiative (CCRI) is cited as an example of how cities and regions can mainstream circular thinking, while future programmes should build on its legacy to integrate bio-based solutions into everyday economic activity.
Crucially, ERRIN calls for better synergies between EU, national and regional funding schemes. Simplifying access to finance and aligning investment priorities would make it easier to attract private capital, reduce fragmentation and ensure that successful regional initiatives can scale up across Europe. ERRIN also stresses the importance of continuing the Circular Bio-based Europe Joint Undertaking (CBE JU) with deeper regional engagement, ensuring that regional stakeholders play a more active role in shaping and implementing its research and innovation agenda.
A resilient and competitive bioeconomy also depends on the sustainable management of Europe’s biomass resources. ERRIN recommends a strategic EU-level analysis of biomass demand and supply, supported by national plans to reinforce domestic biomanufacturing capacity and by national or regional biomass observatories. Improved data-sharing on feedstocks and residual streams would also promote industrial symbiosis – where one sector’s waste becomes another’s resource – helping Europe use its bioresources more efficiently.
Finally, stakeholder engagement and communication with citizens are essential. Regions and local authorities have a key role in explaining the benefits of bio-based products to end-users, farmers and civil society – building awareness, public trust, and demand for circular and sustainable solutions.
A network built on collaborationERRIN’s own network demonstrates what effective collaboration can look like. Bringing together over 120 regional innovation ecosystems across 26 countries, it connects public authorities, universities, companies and civil society in a shared mission to strengthen Europe’s innovation capacity. Its bottom-up approach, fostering mutual learning, partnership-building and policy dialogue, is precisely the model it believes Europe must scale if it is to compete globally in the bioeconomy.
This approach was also central to ERRIN’s recent engagement in the European Commission’s consultation on the EU Bioeconomy Strategy. In late 2024, ERRIN launched a call for input among its member regions, inviting them to share their experiences of developing regional bioeconomies, identify legislative barriers and discuss how different uses of biomass are prioritised locally and nationally. To deepen this exchange, ERRIN convened a policy dialogue meeting in March 2025 with the European Commission, regional representatives and other stakeholders. These discussions helped to highlight how regional innovation ecosystems are crucial for implementing the bioeconomy on the ground, turning EU ambitions into tangible outcomes for industries, farmers, SMEs and communities.
These outcomes were consolidated into ERRIN’s official contribution to the consultation, ensuring that regional realities and challenges directly informed the Commission’s forthcoming update of the strategy. The conclusions are clear. If the EU’s bioeconomy is to live up to its promise, it must be more than a collection of policies; it must be a shared movement rooted in Europe’s diverse regions. The shift to a circular, resource-efficient and competitive economy will not come from the top down – it will grow from the ground up. This cannot just be an industrial strategy – it must integrate a place-based, regional approach that harnesses the unique strengths and potential of Europe’s territories.