Cefic: EU Bioeconomy Vision Needs Concrete Market Action Now

Cefic: EU Bioeconomy Vision Needs Concrete Market Action Now

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The European Chemical Industry Council (Cefic) has welcomed the EU’s recently published bioeconomy strategy, calling it a clear signal of Europe’s ambition to lead in sustainable growth and innovation.

However, Cefic shared its concern that while the vision is strong, the document is critically missing concrete delivery mechanisms and binding commitments required to achieve its goals.

Strategy lauded, implementation lagging:

Cefic, which sees the chemical industry as central to transitioning to a circular bioeconomy, praised the strategy for reflecting key industry priorities, including focusing on scaling innovation and investments, building lead markets, and ensuring sustainable biomass supply.

The Council highlighted several positive steps in the draft, such as proposals to stimulate demand via bio-based content requirements and removing barriers to investment. Yet, the Director General was quick to emphasize that ambition must be matched with tangible policy tools.

Call for legal framework:

Marco Mensink, Cefic Director General, stressed the urgency for regulatory certainty.

“However, strategy alone is not enough. We need action and implementation. That means a legal framework for the industrial bioeconomy to create a single market for bio-based products in Europe and a clear vision for domestic production and imports, including the potential role of Ukraine and other EU partners. Most importantly, that means creating market demand for low-carbon, bio-based, and circular products—markets that currently offer no premium for these solutions. Without demand, there is no business case, and we need that business case now.”

Strategy shortfall:

Cefic identified three primary deficiencies that must be addressed to ensure the strategy moves from mere ambition to industrial reality:

Missing Single Market Instrument: There is currently no legislative instrument designed to create a unified single market for bio-based products, which risks market fragmentation and deters large-scale investment.

Voluntary Nature: Most proposed actions remain voluntary or simply reiterate existing policies, with very few new incentives introduced to accelerate innovation and deployment.

Supply Chain Resilience: The strategy lacks a comprehensive plan to strengthen Europe’s industrial base and ensure supply chain resilience for sustainable biomass.

Cefic concluded by reiterating its readiness to work with policymakers to ensure the strategy achieves its potential by prioritizing the creation of a functional, single market for the bioeconomy.

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ESGNEWS Team

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