European Union: From the fossil fuel economy to the bioeconomy

Whether bioplastics made from corn starch, fuels from algae or textiles made from wood fibres: The bioeconomy stands for a sustainable way of doing business that utilises biological resources such as plants, animals, microorganisms and biomass instead of fossil raw materials – and in cycles that are as closed as possible. A bio-based economy protects the climate and resources and can help to reduce critical dependencies on raw materials.

Innovative bio-based industrial systems that rely on renewable raw materials play an important role here.

The European Commission commissioned Prognos, Idea Consult and the nova-Institute to conduct a study to analyse existing bio-based industrial systems in the European Union. Among other things, the study examines business models, analyses the availability of raw materials and critical dependencies, and highlights opportunities for future innovations.

Bioeconomy in the EU: How can the transition succeed?

This project researches and promotes the transition to bio-based industrial systems in the European Union. They form the basis for a bioeconomy that can make a significant contribution to sustainable development, climate neutrality, autonomy, resilience and competitiveness of EU industries.

However, the high innovative power of bio-based solutions brings with it challenges: technologies must be scalable, integrated into the market and value chains must be developed. In addition, there are geographical factors, economic feasibility, regulatory hurdles and organisational requirements.

In response to these challenges, this study aims to close existing knowledge gaps and provide strategic support for industrial policy and research and innovation programmes. 

The project objectives are:

• Understanding bio-based industrial systems: The study identifies the benefits of bio-based systems and shows how the EU can better utilise them. Successful case studies serve as a model to overcome barriers and promote innovative business models that strengthen competitiveness.
• Reducing import dependency: It assesses the availability of biomass, trade flows and unutilised resources in the EU. The aim is to identify the potential of the bioeconomy to reduce import dependency.
• Impact analysis and scenario assessment: The study analyses the environmental, social and economic consequences of the green transition in various development scenarios. It provides insights into the opportunities and challenges of the transition to a bioeconomy.
• Policy recommendations: We develop concrete proposals for a supportive and coherent regulatory framework. These recommendations are designed to realise the potential of bio-based industries in the EU - in line with the objectives of the European Green Deal, an industrial renaissance and the requirements of geopolitical and climate policy changes.

The study aims to strengthen the EU's position in the bioeconomy, improve sustainability and competitiveness and at the same time promote a resilient and autonomous industrial ecosystem.

Our approach

The following methods are used:

• Case studies
• Interviews
• Data analyses
• Trade analysis
• Innovation analysis
• AI-based sentiment analysis
• Evaluation of economic, ecological and social impacts

Links and downloads

This study was commissioned as part of the ‘Lot 2’ framework contract.

Project team: Jannis Lambert (PL), Dr. Eva Dantas (stellv. PL),  Nico Dietzsch, Phillip Hutzenthaler, Johanna Thierstein, Vera Wechner

Last update: 06.05.2025