WoodCircus, Underpinning the vital role of the forest-based sector in the Circular Bioeconomy. D2.2 Resource Efficiency, Side Streams and Value Chain Analysis – WP2 Final Report

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Where science meets its use - Exploring the emergence of the practical relevance of scientific knowledge in the regional context

siirretty Doriast

How big is the bioeconomy?

The critical role of the Circular Bioeconomy in the sustainable transition has been widely recognised, to the point that a number of countries worldwide have elaborated their bioeconomy strategies and others are in the process of framing their own. The purpose of this report is to advance more objective and rigorous measurement and analysis of the bioeconomy according to the broad definition of the European Commission in 2018. Our focus is mainly on the economic indicators, aiming at the inclusion of bio-based services derived from the symmetric input-output tables from the system of national accounts available from Eurostat and additional expert information. As the main conclusion of the report, we propose a synthesis of input- and output-based approaches. This is motivated by the fact that determining the bio-based weights according to the input-output tables implicitly assumes that the bio-based share of outputs is the same as that of inputs. Clearly, this is not the case for the primary bio-based production sectors – agriculture, forestry, fisheries and aquaculture. Where the outputs are completely bio-based for these sectors, the inputs are far from being 100% bio-based. On the other hand, relying exclusively on the bio-based content of the output would ignore the use of bio-based inputs in the production process. To take into account the bio-based content in both inputs and outputs, we propose to consider weighted averages for the industries. Before applying the new methodology, adjustments are performed with regard to the value added of the bioeconomy by adding the net subsidies, the bio-based shares of the wholesale and retail trade industries, the water supply, sewerage and recycling, as well as the sports and recreation sectors. Applying the methodology with the adjustments proposed, our estimate for the EU-28 bioeconomy in 2015 reaches €1,460.6 billion value added, which is 11% of the GDP. The nova-JRC methodology, used in many bioeconomy publications, calculates €621 billion value added for the same year. This difference is mainly explained by the contribution of €872 billion by the tertiary bioeconomy sectors in the proposed methodology. This novel methodology addresses different challenges for measuring the size of the bioeconomy and eventually providing a basis for evaluating its contribution for a sustainable transition. The approach allows for yearly updates following the calendar of Eurostat I-O tables, probably with a 3 to 4 years delay. It relies on a thorough estimation of the bio-based shares of the inputs and outputs of the various sectors. The authors believe that these are fundamental elements to ensure that “The next era of industry will be one where the physical, digital and biological worlds are coming together” (European Commission 2020a). Taking account of the diversity of EU’s bioeconomies and sectors, this report broadens the ongoing discussion on how to measure and determine the contribution of the bioeconomy to a sustainable and circular economy.JRC.D.4-Economics of Agricultur

Forest Bioeconomy and Climate Change

Climate change, global population growth, declining natural resources and the loss of biodiversity challenge us to move towards a global bioeconomy, based on the sustainable utilisation of renewable natural resources in the production of energy, products and services. The linear economic model based on fossil raw materials and products is coming to an end. Major global agreements and policy goals––the Paris Climate Agreement and the United Nations Sustainable Development Goals––have given licence for our economic model to be changed. There is the need for a new economic paradigm that will place the basis for human prosperity within the planetary boundaries. One essential part of this new paradigm has to be a forest-based circular bioeconomy. The shift to this bio-based economic paradigm should be a long-term strategy for decoupling economic growth from climate change and environmental degradation. Developments in science and technology are laying the foundations for the bioeconomic age. Bio-based products have already emerged that can substitute for fossilbased materials, such as plastics, chemicals, textiles, cement and many other materials. Now, the big question is how to turn these scientific and technological successes into a global economic paradigm shift, and in a sustainable way. This requires us to look at the potential synergies and trade-offs that such a change will inevitably bring and how these can be integrated with the economic, ecological and social goals of society. Right now, we know that climate change will take place in this century, although there is uncertainty as to the degree of disruption it will bring. It will have an impact on forests. Like humans, trees are mortal. Climate change threatens to increase the mortality rate of trees. Disturbances, such as droughts, fires, storms and bark- beetle outbreaks, have already become stronger, more extensive and more damaging. This trend requires us to adapt to climate change and to build resilience in our forests against climate change. So, how can we do this? These themes and questions are the focus of this book, which builds upon recent scientific evidence concerning forests and climate change, and examines how the development of a forest bioeconomy can help to address the grand challenges of our time. In the book, experts analyse the economic, ecological and social dimensions of forests and climate change, along with the basis for, and shaping of, a forest-based bioeconomy, and the links between these. In this way, it provides information on the potential of forests and forest-based products to help in mitigating climate change, and the types of measures that can be taken to adapt forests to climate change, thereby building forest resilience. The book outlines a climate-smart forestry approach, based on three main objectives. First, reducing net emissions of greenhouse gases into the atmosphere. Second, adapting and building forest resilience to climate change. Third, sustainably increasing forest productivity and economic welfare based on forestry. The climate-smart forestry approach is illustrated by case studies from Czech Republic, Finland, Germany and Spain––countries that have quite different forests and forest sectors. Finally, we suggest the types of policy measures required to address the challenges of developing, and increase the opportunities associated with, a sustainable forest bioeconomy. To the best of our understanding, this is the first book devoted to examining the links between climate change and a forest bioeconomy, and outlining the need for a climate-smart forestry approach to address the many needs we have for forests. The book is directed at forest- and environment-sector stakeholders and decision- makers, as well as the research community, the broader education sector and the media.Non peer reviewe