Robert:
To better understand the role of the Bioeconomy in Europe’s recovery, we have to look at the structure of the bioeconomy. Key socioeconomic indicators indicate that the agrifood sector generates three quarters of the value added and jobs.
Throughout the COVID-19 crisis, the agrifood sector with its goods of primary necessity continued functioning without major disruptions. This was also observed in those Member States that were particularly affected by the past crisis starting with the financial crash of 2008-2009, where job losses in the bioeconomy, in particular the agricultural sector, were not as dramatic as losses occurred in the overall economy. In the current crisis, many bio-based activities contribute, for instance, with bio-based disinfection liquids and biodegradable plastic products.
However, the overall economic downturn has reduced the capacity of companies to invest in new innovative and (more) sustainable bio-based industries. Europe’s growth strategy – the Green Deal including the Recovery and Resilience plan – provides now an important opportunity also for the bioeconomy, as these public investments will be able to support the green transition.
A concrete example of how a financial instrument can contribute to the achievement of the European Green Deal goals of making Europe climate neutral by 2050 is the European Circular Bioeconomy Fund, which recently started to support new facilities in the area of bio-based waste and recycling. Furthermore, the Joint Undertaking Bio-based Industry helps leveraging private investments through public research money, financing, for instance, flagship biorefineries.
Yet, bioeconomy and its use of biomass are not a panacea for all challenges. As economic analysis shows, the picture is more complex and characterised by trade-offs. For instance, striving towards a more productive bioeconomy implies structural change, which could reduce the number of jobs.
Looking at the central-eastern part of the European Union – the so-called BioEAST countries – we can see the COVID-19 crisis as an opportunity to invest in the partly unexploited potential of the bioeconomy, while at the same time transforming it towards more sustainability, circularity and resilience.