Building up a new value chain with bio-based materials

What is bioeconomy?

Overview of bioeconomy

Bioeconomy refers to an economic system that uses renewable biological resources (plants, animals, microorganisms, etc.) to develop industries such as energy, materials, food, and chemical products. It aims to break away from the traditional economy dependent on fossil resources and conduct economic activities while reducing the burden on the natural environment.

Specifically, it is expected to develop biotechnology, genetic engineering, and biomass (biologically derived resources) utilization technologies to apply in the following fields:

1. Renewable energy: Utilizing energy generation from biomass (biogas, bioethanol, biodiesel, etc.) as an alternative to fossil fuels such as oil and coal
2. Bioplastic: Plant-based plastics to be developed to replace petroleum-based plastics, leading reduction on the impact on the environment
3. Biopharmaceutical: Production of  pharmaceuticals using biological resources leading to the development of new treatment methods to replace conventional chemically synthesized drugs
4. Sustainable agriculture: Development of agricultural technologies and new crops which efficiently use biological resources and minimize environmental impact

Government responses regarding bioeconomy

A number of governments around the world, including Japan, are formulating national bioeconomy strategies and implementing initiatives such as investment and rule-making to use biotechnology and biomass as an approach to both tackle environmental issues and achieve sustainable economic growth. The following are the policies by the selected countries.

Table 1 National policies regarding bioeconomy

Country	Policy Summary
Japan	In 2019, the “Bio Strategy” was formed  with the goal to realize the world’s most advanced bioeconomy society by 2030.In 2021, it was updated  as “Bioeconomy Strategy,” defined the main areas below:Bio-manufacturing and bio-based products: promote bioprocess conversion in each industry, reduce environmental impact and improve supply chain resilience by utilizing unused resources.Agriculture, forestry and fisheries: contribute to reducing CO2 emissions and countering hay fever by revitalizing sustainable food supply industries and popularizing large-scale buildings that utilize wood.Healthcare such as biopharmaceuticals and regenerative medicine: global expansion of biopharmaceuticals originating from Japan, extension of healthy life expectancy through cooperation between the medical and healthcare industries
EU	In Europe, it is particularly aiming to build a circular bioeconomy that integrates the ideas of bioeconomy and circular economy. This concept develops regulatory strategies, including the revision of the European Renewable Energy Directive in December 2023.Furthermore, it aims to promote a bioeconomy that utilizes each country’s local resources, and strengthen cooperation between regions (e.g., in the production of bioplastics and biochemical products, high regulatory standards and reductions in environmental impact are required, leading to increased competition among companies)
USA	In September 2022, the “Executive Order on Evolving Biotechnology/Biomanufacturing for a Sustainable, Safe, and Secure U.S. Bioeconomy” was issued. It evolves its biotech/biomanufacturing industry while coordinating a whole-of-government approach toward innovative solutions in health care, climate change, energy, food safety, agriculture, supply chain resilience, and national/economic security.Through utilizing its farmland and advanced biotechnology R&D, it provides policy support for expanding the bioenergy market. In particular, the commercialization of ethanol and biodiesel is progressing, and they are becoming an important source of sustainable energy.
China	“14th Five‐Year Plan for the development of bioeconomy” was announced in 2021 to promote a bioeconomy that utilizes life science and biotechnology. Focus areas include medical/healthcare, food, green/low carbon emissions, and biosafety.An increase in the proportion of the bioeconomy in GDP, a significant increase in basic research expenses in the life sciences and R&D expenses in the bioindustry, the creation of a response mechanism for sudden outbreaks of infectious diseases, and innovations such as cutting-edge technology, human resources, and capital. It also aims to improve the fluidity of related elements.It is characterized by strong state-led policy support and infrastructure development. Additionally the government provides large-scale support for bioeconomy-related research and development and commercialization of technology.
Singapore	As part of its bioeconomy strategy, it aims to strengthen the life science industry, with particular focus on the biopharmaceutical and biotechnology industries. The Singapore Economic Development Board is also attracting manufacturing facilities from bio-pharmaceutical companies based on four strategies: technology, manpower, infrastructure, and business environment.The Singapore Food Authority (SFA) has set a goal to raise the food self-sufficiency rate to 30% (on a nutritional basis) by 2030. Similar to insect food, plant substitute meat and cell-cultured meat are positioned as new alternative protein sources.