Episode 1 of the bioCircular Loop Podcast gives an introduction to circular Bioeconomy with Jowita Sewerska, Investment Director at the European Circular Bioeconomy Fund (ECBF).
Photo by JuniperPhoton on Unsplash
Humanity consumes 70% more resources than the Earth's ecosystems can regenerate. In other words, our demand for resources is equivalent to that of of 1.7 planet Earths. Add globally rising average temperatures caused by excessively high CO2 emissions to the mix and we are looking at some of today's most critical global societal challenges.
Luckily, there's a revolution brewing, driven by innovative, future-oriented minds, that presents the solution to these problems: the circular Bioeconomy.
So, what is a circular Bioeconomy?
The modern Bioeconomy can be described as a metasector, an umbrella, that reaches into all industries that use biological resources, including waste, as a base for the production of products and energy. It stretches across the manufacturing sector including the value chains of chemicals, plastics, textiles, pharmaceuticals and any kind of biomaterial. It also reaches into the energy sector, in particular biofuels and represents an essential alternative to fossil crude oil as a main resource.
In a historical context, the Bioeconomy has been the dominant sector of traditional economies going back to when food markets first appeared on record. Animals were used for transportation and power generation, agriculture and forestry provided raw materials for the production of goods. A key technology that was used to produce cheeses and alcoholic beverages, bread and preserve meats is the process of fermentation. Evidence of fermentation dates back to around 7000-8000 BC in regions like ancient Mesopotamia, China and Egypt. The scientific principles were not understood until the 18th-19th centuries, when scientists like Louis Pasteur discovered the role of yeasts and bacteria in the fermentation process. Fermentation has developed into an example of a key process used in industrial biotechnology, which is essentially the technology field that is revolutionising industry processes and enabling the move away from a total dependency on fossil-based resources.
"As a civilisation, we became addicted to fossil-based resources, and we also became addicted to growth." - Jowita Sewerska (ECBF)
The Bioeconomy in itself is not necessarily sustainable, even if the origins of a product are bio-based and renewable. Sustainability is achieved once the concept of circularity enters the game. Instead of only looking at the initial stage of production of a product, we consider the whole life-cycle, in particular the end-of-life stage. Material waste herewith re-enters value chains and can be used for the manufacturing of new materials and products, often in a completely different value chain. This is also referred to as the Cradle-to-Cradle concept (C2C).
So, the circular Bioeconomy is essentially about moving away from a linear economy—where products are made, used, and disposed of—to a more regenerative, circular model where biological resources and waste are continually reused to create further value. It also helps to reduce CO2 emissions and minimize resource depletion. By utilizing biological resources (biomass) as materials, the circular Bioeconomy aims to transform industries by replacing non-renewable, fossil-based resources with renewable, bio-based ones.
Source: Ellen McArthur Foundation
Bio Circular feedstocks and raw materials
At the heart of the circular Bioeconomy are raw materials, or feedstocks, categorized into three categories, each representing different sources and types of biomass:
Generation 1 (gen 1) feedstocks are primary materials directly harvested for use, such as corn (starch), sugarcane and beets (for fermentable sugar)
Generation 2 (gen 2) feedstocks, by contrast, are by-products or waste materials from other processes, like straw from agricultural production or wood pulp containing lignin from the paper industry.
Generation 3 (gen 3) feedstocks include more innovative sources such as algae or waste CO2, using Carbon Capture Utilization and Storage (CCUS) technologies highlighting the industry's move towards harnessing even the most unconventional materials to drive sustainability.
Innovation eco-system driven by Start-ups and SMEs
While the potential of the circular Bioeconomy is vast, start-ups in the field face significant challenges. The transition from lab to market is accompanied by high production costs and challenges in scaling up technologies to a commercial level. These start-ups are competing with well-established, fossil-based processes that are often cheaper due to mature technologies and optimized supply chains. Nonetheless, venture capital is increasingly focusing on "impact investments" targeting the circular Bioeconomy. The European Circular Bioeconomy Fund (ECBF) is the first venture capital fund exclusively dedicated to investing in circular and bio-based startups, existing with the mission to drive the shift from a fossil-based to a bio-based economy. They strategically invest in startups like the Belgian player Amphistar, a startup developing biosurfactants from waste streams like supermarket waste, highlighting how venture capital can accelerate the adoption of sustainable technologies.
To facilitate successful market entry and production scaling, there is a need for innovation-friendly policy intervention, since technologies in the circular Bioeconomy come with higher risks compared to traditional fossil-based resources. They are more expensive, regulations concerning the marketing of products are still immature and raw material supply is not fully secured.
Regulatory Support and European Leadership
Recognizing the importance of supporting sustainable innovations to reach the EU Green Deal targets, the European Union has been a pioneer in fostering the growth of the circular Bioeconomy with various initiatives, including the EU Bioeconomy Strategy and Action Plan.
The goal is to:
ensure food and nutrition security
manage natural resources sustainably
reduce dependence on non-renewable, unsustainable resources
limit and adapt to climate change
strengthen EU competitiveness and create jobs
Through regulations, funding opportunities like the European Biotech Hub and Circular Bio-based Joint Undertaking (CBE JU), and strategic investments, the EU is facilitating this transition. Countries like the Netherlands, France, Belgium, Germany and the Nordic nations are at the forefront, benefiting from national policies that encourage the development and adoption of bio-based technologies.
Future Outlook and Key Drivers
The circular Bioeconomy is going to establish itself as a new normal, the European Commission forecasts double-digit growth of the bio-based industry, expecting a +20% growth by 2030 and +50% by 2050. It is driven by regulatory support, technological advancements, increasing consumer awareness and demand for sustainable products. These factors are expected to drive the industry transition, making bio-based and circular models the new norm across sectors and markets.
The circular Bioeconomy not only offers a pathway to address environmental and sustainability challenges but also presents significant economic opportunities. By redefining how resources are used and valued, this approach can lead to a more sustainable future, promoting a balanced relationship between economic growth and environmental health.
Tune in to the bioCircular Loop Podcast to hear more insights from Jowita Sewerska, Investment Director at the ECBF!
Key Takeaways
Circular Bioeconomy is a sustainable and resource-efficient economic model that addresses global challenges.
It involves shifting the responsibility for externalities like pollution to companies and creating value from waste.
The current linear value chains need to be challenged and transformed into circular systems.
Waste can be used as a feedstock in the Bioeconomy, but the cost and production challenges need to be addressed.
Regulatory and policy frameworks in Europe support the development of the Bioeconomy, with a focus on production conditions, feedstock sources, and sustainability. The regulatory framework is still in development.
Startups in the Bioeconomy can access financial and advisory support from organizations like the European Circular Bioeconomy Fund (ECBF) and the European Innovation Council (EIC).
Consumer demand, regulatory push and the sustainability policies of companies are driving the growth of the circular Bioeconomy.
In the first episode of the BioCircular Loop podcast, Jowita Sewerska, Investment Director at the European Circular Bioeconomy Fund (ECBF) walks us through what exactly this entails, which industries are part of the movement, how we can shift towards a more sustainable and resource-efficient economy and what the main challenges are. The conversation explores how circularity can shift our economies towards a sustainable form of capitalism that benefits all stakeholders by fundamentally rethinking value creation and waste utilization.
Listen to the full episode on Spotify or any other podcast directory to stay in the bioCircular Loop!
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