Link to knowledge resource
The study collects information on the investment and access-to-finance conditions for Bio-based Industries (BBI)1 and Blue Economy (BE)2 projects and companies in the European Union (EU), and evaluates the need and potential for dedicated public (risk-sharing) financial instruments (PFI)3 as well as for other policy actions at the EU and Member State (MS) levels that can catalyse (crowd-in) private sector investments in BBI and BE. The study concludes the following: BBI and BE projects face issues accessing private capital. Regulation and market and demand framework conditions are perceived as the most important drivers and incentives but also present the biggest risks and challenges for both BBI and BE project promoters (PP) as well as financial market participants (FMP) to invest in the Bioeconomy. The main funding gaps in financing the Bioeconomy exist in (i) BBI and BE projects scaling up from pilot to demonstration projects and (ii) particularly in BBI, moving from demonstration to flagship/first-of -a-kind (FOAK) and industrial-scale plants. Existing public financial instruments are utilised but their catalytic impact could be further enhanced. Policy actions and/or new or modified public financial instruments could de-risk BBI and BE investments and catalyse (crowd-in) private capital. The study recommends the following: Establish an effective, stable and supportive regulatory framework for BBI and BE at the EU level, which is essential. Further reinforce awareness about InnovFin and the European Fund for Strategic Investments (EFSI), which can match the funding needs of certain BBI and BE projects. Develop a new EU risk-sharing financial instrument dedicated to BBI and BE, potentially taking the form of a thematic investment platform that can meet the needs of BBI and BE projects and mobilise private capital. Explore the creation of an EU-wide contact, information exchange and knowledge sharing platform or other channels to facilitate relationships between BBI and BE project promoters, industry experts, public authorities and financial market participants active or seeking to become active in the Bioeconomy.
