Introduction to the bioeconomy

Key questions: What is the bioeconomy? How can natural products help us transition to a circular economy?

The bioeconomy, or biobased economy, is a new model for industry and the economy that in time is expected to reduce our dependency on fossil fuels and impact positively on climate change and global warming.

A bioeconomy relies on renewable biological resources to meet society’s needs. It involves sustainable use of these resources to produce food, energy and industrial goods. It includes agriculture, forestry, marine, food, pulp and paper production as well as parts of chemical, biotechnological and energy industries. The bioeconomy is crucial for sustainable, efficient use of natural resources and supports economic and rural development.

What is the circular economy?

Ireland is working towards developing a circular economy. This is an economic model of resource production and consumption that involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products for as long as possible. This is in contrast to a linear economy where resources are turned into products that are used and then subsequently destined to become waste.

Why do we need the circular economy and what is it intended to achieve?

The well-being and prosperity of humanity are dependent on the availability of food, clean air and water but we have failed to value nature, our natural capital, and the ecosystem services it provides.

On a global scale, we have been consuming natural resources and generating waste and pollution at an alarming rate, a situation that cannot continue. Every year 2.2 billion tonnes of waste are generated in the EU alone.

Making the switch to a circular bioeconomy tackles global challenges such as climate change, biodiversity loss, waste and pollution while also delivering social and economic benefits. The circular economy aims to reduce waste. It aims to be restorative and regenerative.

Repurposing and recycling should slow down the use of natural resources and help us to use natural resources in a sustainable manner. A shift in product design ethos to greater efficiency, sustainability and reliability should help us reduce energy and resource consumption.

Globally, we need to reduce our dependence on raw materials. While helping us tackle global challenges, a circular economy should boost economic growth, support jobs, competition and innovation. Growth and innovation in the bioeconomy are central to the circular transition and will ultimately support a modern sustainable society.

The European Union has ambitious targets to achieve a carbon-neutral, environmentally sustainable, toxic-free and fully circular economy by 2050. Legislation will support the circular transition. The government published the Circular Economy Strategy in 2021 and the Circular Economy Act became law in 2022.

Where do natural products fit in the circular bioeconomy?

Natural products are central to the bioeconomy and thereby the circular transition. With increasing shift to a circular economy, the bioeconomy is growing and the role and impact of natural products is expanding.

The circular bioeconomy should use renewable sustainable biological resources from land and sea, and convert these resources and their processing by-products into value-added biobased products. Natural products are key across all bioeconomy sectors: agriculture and food; health and pharmaceuticals; cosmetics; bioenergy and biofuels; biotechnology; waste management and bioremediation and sustainable materials.

We need to replace fossil fuels with renewable energy. We also need to reduce our use of fossil derived materials that have a high carbon footprint and are unsustainably sourced. We need renewable biobased materials.

Ireland is an island rich in natural biological resources and bioeconomy opportunities. There is a vision for Ireland as a global leader for the bioeconomy through a coordinated approach that harnesses Ireland’s natural resources and competitive advantage and that fully exploits the opportunities available while monitoring and avoiding unintended consequences (Ireland’s Bioeconomy Action Plan 2023-2025).

Figure 1. Biomass value pyramid

Activity in the bioeconomy should not negatively impact on biological resources and capacity to replenish or have negative impact on biodiversity. In looking for opportunities in the economy for innovative applications of natural products, we need to keep sustainability at the core.

A cascading approach should be taken whereby higher value applications such as food or chemicals are preferentially derived from biological resources over energy generation according to the Biomass value pyramid (Figure 1).

A recent report found the total turnover in the Bioeconomy for EU Member States and the UK to be just over €2.4 trillion, with the food and beverage sector accounting for around 50% of that turnover. Biobased industries such as chemicals, plastics, pharmaceuticals, paper, textiles and bioenergy accounted for approximately 30% and the primary sectors of agriculture and forestry account for 20%.