Bio-Economy
Background
The bioeconomy encompasses the production of renewable biological resources and their conversion into food, materials, bio-based products and bioenergy.
Following the 2012 and 2018 strategies, the European Commission adopted a new EU Bioeconomy Strategy in November 2025. It aims to strengthen competitiveness, scale up bio-based industries, ensure sustainable biomass supply and promote resource efficiency. The Strategy also recognises opportunities for biorefineries and the permanent storage of biogenic carbon.
The revised Renewable Energy Directive (RED III) introduced provisions on the cascading use of woody biomass, particularly in national support schemes, while allowing flexibility to reflect national circumstances.
The role of bioenergy
Sustainable bioenergy plays an essential role in the European bioeconomy by providing renewable heat and electricity to industries such as pulp and paper production and sawmills. It supports rural development, creates value from forest residues and industrial by-products, and contributes to replacing fossil fuels.
By combining the production of bio-based materials with renewable energy, bioenergy supports industrial symbiosis and efficient resource use. Bioenergy installations can also provide biogenic CO₂ for industrial applications and, when combined with carbon capture and permanent storage, contribute to carbon removals.
Our position
Bioenergy is an integral part of a sustainable and competitive European bioeconomy. The cascading use principle should recognise regional differences, local energy needs and the economic and environmental value of biomass, avoiding rigid approaches that could undermine resource efficiency and industrial competitiveness.
Bioenergy Europe supports greater mobilisation of sustainable biomass, stronger synergies between material and energy uses, and the development of integrated production systems. The EU Bioeconomy Strategy should fully recognise the contribution of existing bio-based industries, sustainable bioenergy and biogenic CO₂ to Europe’s energy transition and circular economy.
