BioRural D1.1 - Current rural Bioeconomy status

This study provides a review of the current status of the European Bioeconomy, containing all the main 5 themes (agriculture, water systems, forestry, bioenergy, biomaterials), as well as the existing bioeconomy national strategies, trends and opportunities that exist in the EU together with successful small-scale biobased solutions. The information presented in this report illustrates the diversity and complexity of the EU bioeconomy. There are a number of important trends occurring in the EU bioeconomy: overall employment in the bioeconomy is decreasing while the overall value of the bioeconomy is increasing. Certain sectors, including the bioenergy and biomaterials sectors that are still relatively small as compared to their fossil-based equivalents, are experiencing rapid growth, these sectors are expected to continue to grow rapidly in the medium and long-term supporting sustainable transitions across the economy. Data indicates that most of bioeconomy feedstocks are produced within the EU, in particular the agricultural sector with a relative weight of approximately 65% followed by forestry at 34% of dry matter with considerable variations on a country level. On the other hand, biomass supply from water systems is still relatively limited but shows considerable potential, especially in the biotechnology sector. Across the EU the largest consumption of biomass is for food and feed, followed by bioenergy and biomaterials. It is clear that a sustainable transition away from an economy based on fossil resources will require the significant growth in the bioenergy and biomaterials sector while maintaining the food and feed sector. In this context, it is important to consider trade-offs and to highlight that biomass is a finite resource and it is important that ongoing efforts directed at shifting existing biomass supply production systems transition towards more sustainable production methods are continued, that bio-waste collection and use systems are optimized and that new value chains for the sustainable production of biomass, such as BPC, are developed. The EU economy is transforming from an economy based on linear economic models to circular economic models however, this transformation is still at its early stages and will require the transformation of existing production systems and value chains as well as the creation of new innovative value chains. This report illustrates the potential of small-scale biobased solutions on a country level across the EU and that these have the potential to scale and support a sustainable transformation across the entire EU economy. In this context, it is crucial that significant funds continue to support research and innovation in this sector. In recent years EU policy has become very supportive of the development of a sustainable EU bioeconomy and the updated EU bioeconomy strategy operates in parallel to multiple other policy initiatives such as the new CAP, Green Deal, Farm to Fork strategy and the Circular economy action plan. In the short term, the further development of national strategies dedicated to the bioeconomy will strengthen the policy environment. In addition, the development of the bioeconomy has a crucial environmental dimension and current policy is supportive of efforts that support and strengthen environmental services and biodiversity. In addition, recent geopolitical developments and the associated increase in energy, fossil-based products and raw material prices have highlighted the importance of further developing local EU biobased value chains that replace energy and products from fossil sources. This study identifies a number of key areas for future research including more detailed overviews of the bioeconomy for all EU member states; an in-depth analyses of specific bio-based value chains; the relationship between economy, society and the environment; the relationship between the bioeconomy, other sectors and the circular economy; indicators that measure the impact and potentials of the bioeconomy and its sectors are being developed and need to be strengthened further; and future research providing projections and scenario analyses on the future state of the bioeconomy in the medium and long-term.