Bioeconomy: Markets, Implications, and Investment Opportunities

Abstract

In order to achieve the objectives of the Paris Climate Change Agreement, the conversion of our economy, which is still dominated by fossil carbon, to the bioeconomy model must be completed by 2050. This requires a shift from oil, gas and coal to agricultural, forestry and marine raw materials and will affect the global processing chains for energy, fuels and chemicals. However, the land required for the production of raw materials is competing with the production of food and animal feed. In addition, future land use must better take into account planetary boundaries and the preservation of ecosystem services. In order to achieve economic, ecological and societal sustainability, the necessary measures must therefore be geared towards the UN’s sustainability goals. Against this background, the future bioeconomy will have to concentrate on the food, chemical and heavy fuel sectors. Important sub-areas are alternative animal protein for nutrition, feedstock efficiency in the processing of bio-based raw materials, and the expansion of the raw materials spectrum. This requires enormous investment in industrial facilities, the integration of newly emerging value chains and the necessary infrastructure. The annual global investment requirements for renewable energy, bio-based chemicals and fuels, and ecosystem services is estimated at USD 1–2 trillion over the next three decades, equivalent to about 1.3–2.6% of global GDP. This article discusses the implications and guard rails of the bioeconomy model, as well as capital needs and possible sources.

The Role of Renewables in a Low-Carbon Society: Evidence from a Multivariate Panel Data Analysis at the EU Level

“…The multiple regression analysis concluded that the model was valid and correctly specified and the renewables were significant indicators of low carbon levels in all 27 EU countries, since the values of the estimated coefficients of the regression model were significantly different than zero and most of the variation of CO 2 emissions in EU countries was explained by the model. The results of the paper confirm recent studies of renewable energy impact on low carbon levels [47][48][49][50][51][52][53]. In addition, the novelty of this study resides in the fresh outlook taken for a set of 27 EU countries for the period 2008-2017, in order to assess the interaction between renewables and CO 2 emissions.…”

More sustainable biomass production and biorefining to boost the bioeconomy

“…As several global crises are interrelated, 8 the bioeconomy's positive impacts can be compounded and far‐reaching 4,5 …”

“…Although the bioeconomy is considered to mitigate several global sustainability crises, it has certain challenges, barriers, and controversies (Figs 2 and 3). 5,18–20 In Kircher's opinion, the transition to the bioeconomy is much more challenging than the transition from a pre‐modern bioeconomy to the current fossil carbon‐based economy 21 …”

“…To achieve them there must be an economic paradigm shift 2 . The development of the bioeconomy is crucial to this transition 3–5 …”

Acceptance of bioeconomy principles in strategic documents on European and Slovak level

“…All opportunities and risks must be taken into account in development of bioeconomy in Slovakia. There is no clear way of implementing the bioeconomy strategy, as bioeconomy is a part of broader policy focused on green growth, new industrial and agriculture policy and a fossil fuels-independent society [7].…”