A new study published today by the European Investment Bank (EIB) shows that scaling up bio-based industries can strengthen EU’s strategic autonomy as well as competitiveness, foster innovation and create growth and jobs, particularly in rural and coastal regions.
Improving access to finance by expanding venture debt and early-stage investment offerings can accelerate the upscaling of new technologies that use renewable natural resources to produce sustainable food, materials, and energy. The study, which was commissioned and supported by the European Commission’s Directorate General for Research and Innovation, identifies three areas with significant growth potential:
- bio-based materials and chemicals,
- innovative food and feed ingredients
- bio-based soil nutrients and enhancers.
The bioeconomy sector sustains over 17 million jobs in the EU, corresponding to around 8% of the workforce, and is essential for tackling challenges such as food security, sustainable resource management and reducing reliance on fossil-based materials.
Europe is well positioned to lead in the bioeconomy sector, thanks to its strong R&D base, skilled workforce, sufficient feedstock and robust local demand for bio-based products. However, bureaucracy, fragmented markets and slow regulatory approval processes put European projects and companies at a disadvantage in attracting funding, especially during scale-up.
Coordinated efforts, harmonised regulation and innovative financing are essential to unlock investment, scale up bio-based solutions and reinforce Europe’s leadership in the global sustainability transition.
The study provides a series of actionable recommendations to address these challenges, from creating a European bioeconomy booster programme to expanding venture debt options under InvestEU guarantee. These findings align with the EIB’s Climate Bank Roadmap and TechEU initiative and come as the European Commission finalises its bioeconomy strategy.
Commenting on the report, European Investment Bank Group (EIB) Vice-President Gelsomina Vigliotti stressed the importance of accelerating investment in bio-based alternatives:
“The bioeconomy is key to the green transition. By harnessing biological resources to produce food, materials and energy, we can strengthen the EU’s strategic autonomy while driving innovation and competitiveness. This report confirms that Europe has the assets to succeed. However, to scale up bio-based solutions, we need more innovative financial approaches and collaborative efforts that remove barriers and attract capital. The EIB stands ready to support this transformation.”
The study is complemented by another EIB study published in September 2025: Investments gaps to achieve sustainable targets in the bioeconomy. This report examines the state of the bioeconomy, the structural drivers of the investment gap, and innovative financing mechanisms to mobilize the capital required to realise its full potential.
The bioeconomy is defined as using biogenic resources to produce food, materials and energy. It is central to the EU’s transition towards a carbon-neutral future and essential for tackling challenges such as food security, sustainable resource management and reducing reliance on fossil-based material.