Funding fix: Europe creates Bioeconomy Investment Group
In Europe, a new Bioeconomy Investment Group has been assembled to help Europe’s sustainable industries secure the funding they need to grow. The group aims to reduce financial risks for investors, create clear funding standards, and bring together public and private money.
Despite already supporting 17 million jobs and generating up to €2.7 trillion (US$3.17 trillion) in economic value, many biobased projects struggle to secure financing at critical stages, such as moving from small-scale testing to full industrial production. This funding gap risks holding back Europe’s ability to turn scientific breakthroughs in biotechnology and sustainable materials into real-world industries.
To address this, the European Commission and the Circular Bio-based Europe Joint Undertaking have brought together European banks, national promotional institutions, venture capital funds and institutional investors to create the Bioeconomy Investment Deployment Group.
The BIDG will focus on four key areas that match the funding process: designing better financing instruments to achieve blended-finance architectures, risk-sharing facilities and guarantee instruments tailored to long-duration biobased projects; building a bankable project pipeline; improving transparency; and linking biobased scale-ups with financial institutions and corporates matched by ticket size, risk appetite and sectoral focus.
Category: Chemicals & Materials
