Wednesday, July 2, 2025
UPM considers the impending reform of the EU bioeconomy strategy by the European Commission as a significant chance to strengthen the bioeconomy and make it a fundamental component of the larger EU frameworks for innovation, industry, and climate policy. Increasing European competitiveness, reviving the European chemical industry, and achieving carbon neutrality while generating economic value and local jobs all depend on a strong and proactive approach.
UPM is a top global provider of material solutions dedicated to creating an innovative, sustainable bioeconomy. With operations in 46 nations and about 16,000 people, UPM is involved in every step of the bioeconomy’s value chain. UPM uses renewable feedstocks to provide material solutions that help sustainably improve society. By working with businesses and brands throughout the world, it generates long-term value through a broad range of decarbonisation solutions, sophisticated materials, renewable fibres, and communication papers. As early as 2015, UPM made investments in biorefining capabilities, and with a 1.3 billion dollar capital expenditure biorefinery in Germany, it will shortly launch the largest bioeconomy operation in the world. Driving the decarbonisation of the transportation and petrochemical sectors, the company has been at the forefront of scaling up the industrial production of renewable alternatives to fossil-based fuels and chemicals. Frequently ranked among the top companies in the Dow Jones Sustainability Index, SBTi, CDP, and Ecovadis, UPM is well-known throughout the world for its solid environmental credentials.
Four essential components must be included in the EU Bioeconomy Strategy to properly utilize the bioeconomy as a driver of sustainable growth and global competitiveness:
Encourage demand for bio-based products and make sure the market is fair
To level the playing field, implement enabling policies that encourage the use of bio-based materials, such as quotas and incentives, and make sure that important EU laws acknowledge them.
Use integrated funding and investment to scale innovation
To speed up the industrialisation of cutting-edge bio-based technologies, the EU should increase its investment in pilot and unique bio-based plants and coordinate funding for research, demonstration, and deployment across key EU programs.
Safe and sustainable biomass supply
By expanding on current voluntary certification programs and allowing for flexible sourcing depending on availability and sustainability, we may encourage steady access to a variety of sustainable biomass sources without adding to land pressure or evading stringent feedstock regulations.
Make EU bio-based industries more globally competitive
Europe must establish favorable policies to promote bio-based products and materials, which are essential for enhancing competitiveness, revitalising the chemical sector, achieving net-zero goals, and supporting a circular economy. Avoiding counterproductive measures is crucial for fostering innovation and maintaining industrial competitiveness.
Increasing market acceptance and demand for bio-based materials and products
The EU Bioeconomy Strategy should implement concrete policies to boost demand for bio-based solutions and ensure fair competition with fossil-based materials. This includes recognising bio-based materials in key regulations and promoting incentives and quotas to foster industry growth. Bio-based options are critical for replacing fossil materials and advancing the bioeconomy. Quotas for bio-based options are essential where recycling quotas exist, as voluntary measures are insufficient for investment. Recycled materials cannot meet quality and regulatory demands, and their quality diminishes over time. Integrating sustainable bio-based options is necessary for a net-zero materials system. This provides obligated parties with an environmentally responsible compliance option, promoting sustainability and fair competition. Additionally, highlighting the climate benefits of bio-based products in assessments will boost demand and support the transition to a circular net-zero economy. The European bioeconomy links sustainable biomass production with innovative industrial processes.
Innovation scaling from laboratory to industry
Sustainable transformation and European competitiveness require investments in low-carbon and circular technologies, followed by deployment across Europe. The EU Bioeconomy Strategy must bridge research and market deployment through an integrated framework for research, demonstration, and scale-up funding. Advancing bioeconomy technologies reduces import reliance. Investments in sustainable feedstocks can scale with policy certainty and support.
To accelerate sustainable transformation and boost European competitiveness, significant investments are needed for commercial low-carbon and circular technologies. The EU Bioeconomy Strategy must close the gap between research and market deployment through an integrated framework for funding. Advancing bioeconomy technologies mitigates import reliance. Investments in sustainable feedstocks are ready to scale with policy certainty and support.
Ensuring a steady supply of biomass without putting more strain on land
Biomass-based materials are essential for Europe’s industrial transformation, enabling climate neutrality and reducing fossil dependence. Bio-based feedstocks enhance strategic autonomy and open new markets, including chemicals. A successful bioeconomy requires stable, sustainable access to diverse biomass for materials and energy. The EU Bioeconomy Strategy must promote demand for renewable materials while ensuring long-term biomass supply, supporting advanced biomass feedstock mobilisation based on sustainability and co-benefits, without increasing land pressure or regulatory barriers. Sustainability criteria apply only to regulated markets.
Quota for bio-based options requires sustainable biomass sourcing against RBA-inspired criteria. Strategy must avoid complex compliance, focusing on frameworks like FSC, PEFC, and ISCC EU for environmental standards and consumer trust. New regulations should not duplicate Renewable Energy Directive (RED) requirements. Flexibility is vital for market actors to choose sustainable feedstocks. Restrictive lists may cause supply shortages and hinder innovation. Bioeconomy Strategy should value innovative feedstocks like agroforestry and silvopastoral systems for biodiversity and land-use efficiency. Explore agricultural and forestry feedstocks that provide climate, nature, and regional value co-benefits.
Making European bio-based industries more globally competitive
To position European bio-based industries as global leaders, the new EU Bioeconomy Strategy must align with Europe’s trade, energy, and industrial agendas. Achieving global competitiveness requires innovation support, lower production costs, and access to international markets for bio-based products. Affordable, fossil-free energy is essential for cost-competitive EU production. Strong safeguards are needed to prevent carbon leakage and ensure fairness for European producers. International competitiveness also requires reducing regulatory fragmentation and trade barriers for bio-based goods, while ensuring feedstock integrity against fraudulent or non-sustainable imports.
The EU should promote free trade agreements with provisions for clean technologies and bio-based products, fostering global demand for EU innovations. The Strategy should support internationalisation via export promotion tools, innovation diplomacy, and cooperation with global partners, including harmonising sustainability standards and promoting EU bio-based solutions in markets with rising demand for sustainable alternatives.
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