Transitioning to a sustainable circular bio-based economy (CBBE) is a challenging policy task. First, while there are many definitions of circularity and bioeconomy, the precise shape of the CBBE is still unknown. For example, it is still debated how much biomass can be used sustainably. Also, it is unclear which levels of reuse or recycling should be aspired for which resource or product type. Second, there are many barriers of different types that have to be overcome. These range from low competitiveness of bio-based or recycled products over a lack of information regarding product sustainability to cultural or political barriers. Third, the large amount of challenges possibly requires a specific policies to respond to them. Numerous policies already exist, but there is often little knowledge about their effectiveness while the aggregate administrative burden for businesses is often substantial. Both, the growing number of policies, their externalities and often unknown effects require more focus on monitoring particularly on the trade-offs that are inherent to the CBBE. For example, policies that promote using agricultural biomass and thus land for creating climate-friendly bio-based products may conflict with the goal of improving food security. Another example is that policies supporting recycling may reduce the need for virgin resources, but they can also lead to increased pollution and a lower competitiveness of the EU economy when recycling requires high inputs of chemicals or energy.
SUSTRACK seeks to find actionable policy solutions that address transition barriers effectively, minimize contradictions and trade-offs and maximize the benefits of the CBBE in line with the goals of the EU bioeconomy strategy and the EU green deal. SUSTRACK will identify policy priorities among existing and possibly new policy options that are most promising for a sustainable transition. Starting point is a working definition of the CBBE that assembles key elements from EU policy strategies and scientific literature. The definition arranges these elements into a structure that supports the “translation” of abstract policy goals into a consistent set of actionable policy instruments. Next to identifying “policy leverage points” such as recycling, cascading use or use of residues, it derives key criteria (GHG emissions reduction, resource efficiency and decoupling). Policy instruments for the transition should positively impact these criteria to minimize trade-offs. A detailed explanation of the definition will be reported in the first SUSTRACK policy brief, which will be published soon on SUSTRACK website.
In a second step, a survey of scientific articles, project reports and grey literature will be used to collect a wide array of policy options – both, existing and proposed – that will be structured with the help of the CBBE working definition. The review will focus on actionable policy instruments of various types, including market-based policies, direct regulation, information instruments and other. Based on this review, possible policy gaps will be identified. The review will also provide insights in regard to which types of policies are predominantly used, and collect strengths and weaknesses.
In a third step, based on extensive stakeholder discussions, policy priorities will be identified. However, simply prioritizing dozens of policy instruments in stakeholder discussions is neither possible, with each instrument having different tasks and complex effects, nor meaningful, as many instruments are rather complementary instead of posing alternative policy options. For example, providing more information on the sustainability of products or supporting industrial networks for innovative products is crucial for any transition scenario and should be implemented in parallel, not before or after, other policies that address barriers such as economic or cultural ones. The prioritization will therefore focus on policies that are actual alternatives as they exclude other policy options. For example, prescribing recycling quotas typically excludes (or undermines) the use of incentives such as taxes for promoting recycling. Stakeholder prioritization will focus on policy alternatives that address key leverage points for the transition as defined in the CBBE working definition. To further limit the number of policies to facilitate an effective prioritization, policy options will be combined into policy clusters that address all key goals of the transition. Each cluster will be discussed with stakeholders in regard to strengths and weaknesses to provide a well-founded basis for a subsequent prioritization.