Story | 10/23/2025 13:41:16 | 4 min Read time

Leveraging the potential of biomass, enhance European competitiveness

Biomass can play a critical role in boosting EU growth and competitiveness while supporting its strategic autonomy and enabling innovation, decarbonization.

 

Bioeconomy based technologies and materials are crucial for the transformation of the EU industry and can help unlock new markets for EU products and technologies. The climate neutrality goals set and upheld by the EU can only be achieved by embracing the use of Biomass also for industrial material applications. Stimulating market demand for innovative renewable materials, including those made from biomass, via tangible policy instruments will give an immediate signal to the market to expand the currently available sustainable bio-based solutions and set a clear way forward for industry development.

A new plan for Europe's sustainable prosperity and competitiveness1

The European Commission has identified three transformational imperatives to boost competitiveness – closing the innovation gap, a joint roadmap for decarbonization and competitiveness as well as reducing excessive dependencies and increasing security. To set out a competitiveness-driven approach to decarbonization, the EU is foreseeing tailor-made action plans for energy intensive sectors, which are the backbone of the European manufacturing system, but are the most vulnerable in this phase of the transition.

Europe‘s path to climate neutrality continues with a strong focus on energy transition234

Bioenergy plays a significant role in the renewable energy mix of the EU – also in the long run. According to reports from the European Environment Agency (EEA), bioenergy accounts for approximately 60% of the total renewable energy consumption in the EU with a strong emphasis of biomass in energy and fuels applications to achieve the climate goals. This specifically applies to transportation where emission reduction in critical segments like aviation and maritime will rely on biobased fuels for the longer term as synthetic alternatives or even alternative technologies are expected to scale only towards 2040-2050.

We need to think beyond energy and transform the chemical industry56

The latest chemical sector climate neutrality pathways underscore the critical role of feedstocks, emphasizing the substantial contribution of Biomass in driving the transition towards climate neutrality. A pivotal part of the chemical industry considerations involves prioritizing biomass use as material or as carbon feedstock. In addition, biomass based chemical industry production adds to EU strategic autonomy and will create novel technologies and market opportunities. In addressing the challenges of leveraging biomass for climate neutrality, it is crucial for the chemical industry to secure reliable access to sustainably sourced and economically affordable biomass. 

What it takes to fulfil the three transformational imperatives

  • Biomass use is an essential driver of decarbonization, innovation and competitiveness - as such biomass use needs to be considered at an equal level to other renewable options such as recycled and CO2 based solutions.
  • Biomass plays a key role of biomass in reducing dependencies on imported raw materials and shift away from fossil resources which will lead to a significant growth potential for Europe.
  • Biomass sustainability and acceptance relies on sustainable forest management and regenerative farming practices that maintain and increase biodiversity, growth and healthy soils and enables communities and forest owners to thrive along the value chain while actively adapting to climate change.
  • Biomass use in both material and energy sectors needs to be expanded significantly and sustainably.
  • Biomass sustainability needs to be ensured by tight control of biomass sources before entry of the EU market and availability.
  • Biomass availability is key and should be supported by regulations balancing biomass use and nature conservation and biodiversity.
  • Combining circular economy & bioeconomy enables the urgently needed phase out of fossil raw materials.

 

1A new plan for Europe's sustainable prosperity and competitiveness
2Stepping up Europe’s 2030 climate ambition

3Implementation of bioenergy in the European Union – 2024 update
4Bio-based feedstocks will likely only be able to provide half of SAF demand by 2050, finds ICF study
5Pathways for the global chemical industry to climate neutrality
6https://cefic.org/app/uploads/2024/12/The-Carbon-Managers-iC2050.pdf