On July 9, 2025, the Circular Bio-based Europe Joint Undertaking (CBE JU) published its welcome to the new European Chemicals Industry Action Plan. In their announcement, they emphasized that bio-based chemicals are now recognized as a strategic route to making sectors more sustainable, decarbonizing industry, and promoting circularity.
The core of the plan, bio-based as an ally of climate neutrality
CBE JU points to three pillars in the plan.
- Firstly, the need is mentioned to make the industry more resilient by strengthening key production facilities in the chemical sector, including through a Critical Chemicals Alliance.
- Secondly, the plan takes decarbonization seriously with investments in clean and circular technologies. Bio-based chemicals will play a prominent role as alternatives to fossil-based products.
- Third, the plan raises the bar for innovation by making sustainable-by-design chemicals market-ready faster.
CBE JU indicates that it is ready to contribute to this ambition with resources, knowledge and partnerships.
Concrete examples of bio-based projects
Within CBE JU, several projects are underway that align well with the objectives of the action plan.
The AFTER-BIOCHEM project, for example, is creating a new value chain from non-food biomass such as beet pulp and molasses. This produces organic acids that are converted through fermentation and esterification into high-quality building blocks such as vinyl acetate and cellulose acetate. These substances are suitable for applications in flavors, hygiene products, antimicrobials, pharmaceuticals, and polymers.
In Estonia, the SWEETWOODS project demonstrates a biorefinery that converts residual wood into pure lignin and sugars. These can replace fossil-based materials in coatings, plastics, and other applications.
PEFerence focuses on FDCA production, a platform chemical that enables fully biobased and recyclable plastics like PEF. These can compete with PET in food and beverage packaging, especially when scaled up.
OPTISOCHEM proves that wheat straw can be converted into bio-isobutene derivatives, useful in adhesives, lubricants and performance materials.
Impetus from policy and financing
The action plan emphasizes that bio-based chemistry will be more effective when linked to policy and investments. For example, the European Commission is considering the new EU Bioeconomy Strategy expected by the end of 2025, innovation hubs for chemistry and substitution, and additional funding under Horizon Europe.
In addition, attention will be given to lead markets through the Circular Economy Act and green government procurement. Guidance for national investments will be provided through IPCEI pathways for biotechnology and circular materials.
There will also be tax incentives and the proposed Industry Decarbonisation Accelerator Act, which will establish sustainability criteria for investments in green chemistry.
What does this mean for the bio-based sector?
CBE JU sees that the action plan offers not only ambition but also momentum. Projects can be accelerated, market introduction is supported, and technological breakthroughs are more likely to occur.
For researchers, entrepreneurs, and other stakeholders in the bio-based value chain, the plan means that public support, policy frameworks, and market opportunities are converging. Bio-based chemicals can thus truly contribute to systemic change within the industry.
Source: CBE JU
