A new policy brief is calling on the European Commission to standardize coordination in the area of biobased innovations, to strengthen funding and improve market conditions.

The EU-funded ShapingBio project has released a comprehensive policy brief outlining key recommendations to support the European Commission in creating an optimal framework for a sustainable and competitive European bioeconomy. The recommendations feed into the upcoming New EU Bioeconomy Strategy, expected to play a crucial role in advancing Europe’s transition towards a circular, climate-neutral economy.

The policy brief emphasizes the following urgent needs and provides practical recommendations on how to address them:

• Stronger strategic cooperation across Member States and regions to unlock the EU’s full bioeconomy potential, by improving horizontal and vertical coordination and intensifying dialogues between actors from the fields of education, the economy, the natural environment, civil society, and the political system
• Improved access to financing across the innovation chain, helping companies scale from “lab to fab,” with funding conditions better aligned to innovators’ needs, funding instruments for activities on higher technology readiness Level (TRLs), and the expansion of public-private partnerships
• Harmonized market conditions and demand-side policies to accelerate the deployment of all segments of biobased products

According to experts, a thriving bioeconomy is central to tackling climate change, biodiversity loss, resource scarcity, and other major societal challenges. With its cross-sectoral scope, the bioeconomy provides sustainable alternatives to fossil-based systems and fosters innovation in areas such as food, materials, energy, and industrial processes.

The recommendations are based on extensive engagement with nearly 2,000 key bioeconomy stakeholders — including policymakers, industry leaders, researchers, and civil society representatives — through surveys, interviews, and 45 events held between 2022 and 2025.

Sven Wydra, coordinator of Business Unit Bioeconomy and Life Sciences at Fraunhofer ISI and coordinator of the ShapingBio project, underlines the importance of collective action, “Europe has strong assets in the bioeconomy — from diverse biomass resources to leading research and innovation. But fragmented strategies and uneven innovation capacities hold us back. To stay globally competitive and deliver on sustainability goals, we need coherent policies that promote stronger collaboration across all Member States, better financing, and the securing of Europe’s leadership in sustainable biomanufacturing. Our recommendations aim to ensure that Europe not only develops biobased solutions, but also creates the right conditions for them to thrive.”

The policy brief is only one of Shaping Bio’s publications, highlighting concrete steps for the European Commission, Member States, and other stakeholders to translate strategic goals into actionable measures. Comprehensive in-depth analyses, accompanied by more detailed recommendations, have been developed to take stock of the current state of the bioeconomy in all EU Member States, on policy and governance, applied R&D and technology transfer, cross-sectoral collaboration, and financing. The full reports and recommendations are available online.

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