On 27 November 2025, the Commission adopted the Strategic Framework for a Competitive and Sustainable EU Bioeconomy, designed to chart the course toward a cleaner, more competitive, and more resilient European economy. By utilising renewable biological resources and providing alternatives to critical raw materials, the EU aims to move toward a more circular and decarbonised economy while reducing dependence on fossil imports.

But What Exactly Is the Bioeconomy?

The bioeconomy revolves around the production and sustainable use of biomass. A biomass‑based economy forms part of the broader bioeconomy, referring to both food‑ and non‑food‑related processing of biomass.
In essence:

The bioeconomy includes all activities that use biological resources to create added value.

The bioeconomy offers Europe the opportunity to:

• strengthen economic and social resilience,
• replace fossil‑based materials and products,
• create new jobs,
• and take a leading role in the global transition toward clean industries.

Through this new strategy, the EU supports activities that deliver sustainable, practical solutions based on biological resources across sectors such as:

• agriculture
• forestry
• fisheries
• aquaculture
• biomass processing
• biomanufacturing
• biotechnology

A Coherent and Simplified Regulatory Framework

The European Commission is working to create a simplified, coherent regulatory environment that rewards circular and sustainable business models while safeguarding EU‑level safety standards. It also aims to ensure that current and future EU funding is channelled into bio‑based technologies.

To stimulate private investment, the Commission proposes establishing a Bioeconomy Investment Group, responsible for developing a pipeline of bankable bio-based projects.

The Commission has identified high‑potential markets for bio‑based materials and technologies, including:

• bio‑based plastics
• fibres and textiles
• chemicals
• fertilisers
• pesticides
• construction materials
• biorefineries
• advanced fermentation
• long‑term storage of biogenic carbon

The strategy also aims to increase demand for bio‑based content in products, including through legislative targets.

Additionally, the Commission proposes the creation of a Bio‑based Europe Alliance, which would unite EU companies to jointly procure €10 billion worth of bio‑based solutions by 2030.

What Activities Will the New Strategy Support?

• Boosting bio‑based innovation through mixed public–private investments and simplified regulation
• Accelerating approval processes for innovative solutions, especially for small businesses
• Increasing investment in bio‑based technologies and establishing a dedicated investment group
• Growing demand for bio‑based content in products by setting targets in relevant legislation
• Creating a European Bioeconomy Alliance to support joint procurement of bio‑based solutions
• Advancing circularity and increasing the value of secondary biomass (e.g., agricultural waste, by‑products, organic waste)
• Launching initiatives to reward sustainable practices among farmers and foresters, such as:
  • soil protection,
  • carbon sink enhancement,
  • and sustainable biomass use

The EU Bioeconomy Strategy emphasises:

• responsible sourcing of biomass, and
• the management of forests, soils, water, and ecosystems within ecological limits.

Promoting circularity and increasing the value of secondary biomass remain central pillars of the strategy.

Examples of Bio‑based Products

• Bio‑based chemicals derived from algae, used in pharmaceuticals, personal care products, and industrial applications
• Bio‑based plastics, increasingly used in packaging and automotive components
• Growing demand for bio‑based construction materials, textile fibres, and fertilisers

Interested in the Topic? Check Out Our Earlier Article!

Bioeconomy Projects Running in Hungary:

• Engage4BIO
• BIOLOC
• Greet CE
• MarginUp!
• BIOECO‑UP

Conclusion

The new Bioeconomy Strategy signals the EU’s commitment to building a cleaner, more sustainable, and more competitive economy powered by biological resources. The strategy supports not only environmental objectives but also economic opportunities—empowering companies, investors, and communities to adopt bio‑based solutions at scale.

Through the broad deployment of bio‑based innovations, the European bioeconomy can become a key driver of a cleaner, more resilient European economy of the future.