Countries globally are mobilising the bioeconomy’s potential for sustainable growth and development through dedicated national and regional bioeconomy strategies. The bioeconomy utilises biological resources and biotechnologies to produce valuable products and services across sectors such as agriculture, health, chemicals, energy, and manufacturing. Its economic value is substantial and expected to grow dramatically. Today’s global bioeconomy is estimated to be valued at US$4-5 trillion, with a growth potential of up to US$30 trillion by 2050 (Nature Finance, 2024[1]). It also brings the opportunity to address major global challenges including climate change, biodiversity loss, health concerns, and contribute to achieve long-term sustainability goals (Nature Finance, 2024[1]).
Biomanufacturing lies at the heart of this transformation. As a key enabler of a sustainable and circular bioeconomy, biomanufacturing involves using biotechnologies to convert biological feedstocks into bio-based products. Bioresources such as biomass, waste streams, and captured carbon return to the economy as a wide range of bioproducts in a circular manner. Enabling biotechnologies include fermentation, enzymatic conversion, synthetic biology, and integrated biorefinery processes. Biomanufacturing facilitates the efficient valorisation of bioresources, through the cascading use of feedstocks and the production of high-value biomaterials, biochemicals, biofuels, and other industrial feedstocks.
More broadly, biomanufacturing is a critical component of carbon management strategies, which integrate the bioeconomy, carbon recycling, and renewable energy (OECD, 2023[2]). In hard to decarbonise sectors – such as chemicals, plastics, and aviation fuels – strategic carbon management focuses on replacing fossil carbon with renewable carbon sources. Carbon management frameworks promote circularity by keeping carbon circulating in the economy through reuse, recycling, and bioconversion.
The interaction between bioeconomy and carbon management through biomanufacturing is therefore central to achieving net-zero targets. Effective biomanufacturing support mechanisms offer practical approaches to decouple economic growth from fossil carbon use, and simultaneously reduce pressures on land, water, and biodiversity. However, realising this potential requires targeted and comprehensive investment frameworks that de-risk innovation, build enabling infrastructure, and create robust markets for sustainable carbon-based products.
This policy brief addresses how leveraging de-risking instruments can catalyse investment in biomanufacturing to support capacity scale-up and value chain creation in line with the G20 Bioeconomy Initiative. Drawing on OECD research and analyses, it highlights critical investment gaps, identifies policy levers, and explores financial instruments that can mobilise both public and private capital towards bioeconomy transitions.