The EU Commission announced today, a package of legislative proposals aiming to restore Europe’s competitiveness in a way that is compatible with its ambitious climate objectives. In doing so, the European Union is developing a regulatory environment that is particularly fit for circular bioeconomy industrial players, bioeconomy being identified in the Clean Industrial Deal as one of a few strategic sectors.
Europe lags behind other global regions in green business growth and loses manufacturing jobs at an accelerated pace. As an answer to this critical situation, the Clean Industrial Deal lists several “business drivers”, including clean affordable energy, lead markets, and circularity, closely tracking key features of the forest-based, circular bioeconomy – representing one in five manufacturing companies in Europe.
The texts presented however fail to provide sufficient visibility on ‘carbon leakage’ protection. The EU’s climate ambitions are already resulting in a mechanical increase of CO2 emissions from competitors in parts of the world where climate legislation is less developed, or ‘carbon leakage’.
Another important factor in global competitiveness, European energy prices remain two times higher than before the double crisis of the Covid pandemic and war in Ukraine. The Clean Industrial Deal crucially allows for flexibility in energy sourcing while addressing bottlenecks and access to fossil-free, European energy.
Circularity and forest-based materials are now being looked at by EU legislators from a similar perspective: substituting fossil resources for which the EU is dependent on external providers. Forests are a renewable resource that enables Europe’s sustainable transition beyond fossil-based materials, and as stated in today’s communication, can “reduce dependencies on imported raw materials”.
The Clean Industrial Deal also offers a recognition of the scale of the challenge for the smallest EU industrial actors, which typically play an important role in the circular bioeconomy. If the EU Commission’s plans can be enacted, SMEs and mid-caps will be able to save billions of euros on regulatory compliance costs without lowering ambition in reducing industrial emissions.
Putting in motion the proposals of the Clean Industrial Deal also depends on EU Member States, notably for the deployment of affordable, renewable energy as fast as possible. By acting now, the EU Council can support an economic model based on renewable materials and energies, and increased circularity.
“Unlocking the full potential of the bioeconomy is key not only to improving material and energy self-sufficiency but, even more importantly, to effectively replacing fossil-based materials. This strengthens Europe’s preparedness for climate change and geopolitical uncertainty.” Marco Eikelenboom, Cepi Chairman and CEO Sappi Europe
“Europe is a lead market for the circular bioeconomy, and there have been recent signs that other parts of the world are looking at our model, with the ambition to catch up. The circular bioeconomy is a €7.3 trillion opportunity by 2030. Europe is, after today’s policy announcements, well positioned to capture a large share of this market.” Jori Ringman, Cepi Director General
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