Financing the Bioeconomy

The BBI JU public-private partnership leverages private investments and reduces the investment risk for the private sector.

Of the total €3.7 billion BBI JU budget, almost 75% is to be invested by bio-based industries, in total €2.7 billion from 2014-2020.

BIC’s annual survey from 2016 shows that the bio-based industries are already investing more than 4 billion EUR in infrastructure in Europe.

Most of the short-term investments take place in the lignocellulosic and forestry-based value chains. Projects include transitioning from first generation to second generation ethanol production, as well as expanding production into chemical building blocks, producing food grade microfibrillar cellulose (MFC) and setting up a production plant for new materials and chemical building blocks from the lignin and cellulose streams of the pulp and paper industry.

In the agro-based value chain, a new industrial scale flagship project to use cardoon to extract oleochemicals for use in bio-based products such as biolubricants, cosmetics and bioplastics has received investment.

Access to Finance

EIB survey on improving access-to-finance for the bio-based industries 

BIC members gave input to a European Investment Bank (EIB) survey to identify access-to-finance obstacles and barriers facing the bio-based industries. The full report (expected to be published beginning of 2017), may recommend more tailored financing tools for the bio-based industries. 

The study was presented at the Bioeconomy Investment Summit 2015.

Besides BBI JU’s annual Calls for proposals, other support measures for European Biobased Industries (BBI) are also available. Below, a non-exhaustive list of such measures is provided.

Horizon 2020 is the EU’s main funding programme for research and innovation. Running from 2014 to 2020, it has a total budget of approximately €80 billion. Via the Participant Portal, a user-friendly keyword search can be performed, allowing interested parties to find the most relevant Horizon 2020 funding opportunities.

ESCS, the European Sustainable Chemicals Support Service, has selected 6 Model Demonstrator regions that will receive advisory support services from the ESCS. The purpose of this initiative is to show the way towards sustainable chemical production in Europe, taking advantage of domestically available feedstock such as biomass, waste or CO2. More information about the 6 selected regions can be found on DG GROWTH’s website.

EIB (European Investment Bank) is the European Union's bank. EIB is the only bank owned by and representing the interests of the European Union Member States. The EIB works closely with other EU institutions to implement EU policy. As the largest multilateral borrower and lender by volume, EIB provides finance and expertise for sound and sustainable investment projects which contribute to furthering EU policy objectives. More than 90% of EIB’s activity is focused on Europe but EIB also supports the EU's external and development policies.

EIF (European Investment Fund) supports Europe’s SMEs by improving their access to finance through a wide range of selected financial intermediaries. To this end, EIF designs, promotes and implements equity and debt financial instruments which specifically target SMEs. In this role, EIF fosters EU objectives in support of entrepreneurship, growth, innovation, research and development, and employment.

InnovFin (EU Finance for Innovators) comprises a new generation of financial instruments and advisory services to help innovative firms access finance more easily. Until 2020, InnovFin will offer a range of tailored financial products for research and innovation (R&I) by small, medium and large companies and the promoters of research infrastructures.

ESIF (European Structural and Investment Funds) are the European Union's main investment policy tool. Financial Instruments (FIs) transform EU resources under the European Structural and Investment Funds (ESIF) into financial products such as loans, guarantees, equity and other risk-bearing mechanisms. These are then used to support economically viable projects which promote EU policy objectives. For more information on how to combine BBI JU and ESIF funding, please consult the ‘Guiding Principles’ commissioned by BIC, the Bio-based Industries Consortium.

ERRIN (European Regions Research and Innovation Network) is a unique Brussels-based platform of more than 120 regional stakeholders organisation most of whom are represented by their Brussels offices. The network promotes knowledge exchange between its members, focusing on joint actions and project partnerships to strengthen regional research and innovation capacities.

ENRD (European Network for Rural Development) is the hub that connects rural development stakeholders throughout the European Union (EU). ENRD is contributing to the effective implementation of Member States' Rural Development Programmes by generating and sharing knowledge, as well as through facilitating information exchange and cooperation across rural Europe.

BioHorizon project aims to align and enhance the services that National Contact Points (NCPs) for Societal Challenge 2 focussing on food security, sustainable agriculture and forestry, marine and maritime and inland water research and the bioeconomy (SC2) provide to applicants for research funding across Europe and beyond. In addition to NCPs for SC2, BioHorizon also addresses those responsible for the Key Enabling Technology (KET) ‘Biotechnology.’

EASME (Executive Agency for Small and Medium-sized Enterprises) is an Executive Agency of the European Commission responsible for managing specific programmes in the fields of business support targeting SMEs but also energy, environment and maritime research & innovation. Its goal is help create a more competitive and resource-efficient European economy based on knowledge and innovation.

SPIRE (Sustainable Process Industry through Resource and Energy Efficiency) Public Private Partnership is a cross-sectorial initiative involving the eight main players in the EU's process industries: chemicals, steel, engineering, minerals, non-ferrous metals, cement, ceramics and water.

EEN (Enterprise Europe Network) is an initiative of the European Commission, designed to help SMEs innovate and succeed by proiding a local gateway to global business opportunities. EEN mission is to help European businesses grow and innovate by providing the local support and advice they need to nurture their international ambitions, find business partners and access funding and finance.