WBCSD Bioeconomy · 2019. 4. 9. · Bioeconomy describes the sustainable production and utilization...

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3 RD APRIL 2019 WBCSD – Bioeconomy Montreux LD

Transcript of WBCSD Bioeconomy · 2019. 4. 9. · Bioeconomy describes the sustainable production and utilization...

Page 1: WBCSD Bioeconomy · 2019. 4. 9. · Bioeconomy describes the sustainable production and utilization of biological renewable resources and aims at complementing or substituting existing

3RD APRIL 2019

WBCSD – BioeconomyMontreux LD

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Agenda of today’s workshop

10 min Project background and progress update

5 min Recap: Bioeconomy definition & relation to CE

5 min Recap: WBCSD role

10 min Next steps

Source: WBCSD; BCG analysis

10 min Deep dive possibilities

45 min Break out session in groups to discuss deep dives

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Bioeconomy workstream integrated into current Factor 10 projects

WBCSD

Circular

Economy

Projects

CE Hub

Plastics

Factor 10

Factor

10

AutomotiveBio

economy

Built

environmentE-Waste

FSGMetrics

Policy

Source: WBCSD; BCG analysis

Project background &

progress update

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Based on your

insights,

bioeconomy

workstream will

be a success, if

WBCSD…

Creates tangible outcomes, e.g. CEO guide

Supports collaborations across industries & along the value chain

Helps to overcome existing barriers

Provides a clear definition, structure & framing of concept

Showcases successful business case examples

Provides a platform to advance technologies

Source: WBCSD; BCG analysis

Project background &

progress update

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We are currently at the end of the preparation phase

02/19

12 months

Preparation Phase

Kick-off concept note

Phase 1

In-depth review of the bioeconomy

Phase 2

Finalization and implementation

4 months

Key meetings

Launch

Key activities

• Analysis of bioeconomy definition, its

link to Circular Economy, barriers and

the current landscape through:

• 2 month of desk research to evaluate

existing reports & data

• 11 in depth interviews to incorporate

WBCSD member's opinion

• 20 survey participants to provide

views on concept

• Background research for Montreux

discussions

• Development of three different workstreams to support

progress of the concept

• Focus on specific topics such as (tbd in Montreux):

– Successful business case examples

– Best practices

– Barriers

– Pilot

– Metrics & tools

2 months04/19 05/19 05/20 06/20 09/20

• Integration of findings and results from

workstreams

• Development of comprehensive guide for

WBCSD members

Montreux LD (03/04/19)

Lisbon CM(13-16/10/19)

Montreux LD (tbd)

Source: WBCSD; BCG analysis

Workshop 2(August 2019)

Today

F10 call(27/03/19

Project background &

progress update

WS 1: World CE Forum (06/06/19)

De-brief call(18/04/19)

Workshop 3(tbd)

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Individuals from 11 companies interviewed Survey filled out by 13 additional companies

24 companies involved in interviews and surveys to incorporate multiple views

Source: WBCSD; BCG analysis

Project background &

progress update

Note: In total 20 individuals filled out survey, one anonymously

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Agenda of today’s workshop

10 min Project background and progress update

5 min Recap: Bioeconomy definition & relation to CE

5 min Recap: WBCSD role

10 min Next steps

Source: WBCSD; BCG analysis

10 min Deep dive possibilities

45 min Break out session in groups to discuss deep dives

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Proposed WBCSD bioeconomy definition

Bioeconomy describes the sustainable production and utilization of

biological renewable resources and aims at complementing or

substituting existing fossil-based and non-renewable materials to

support a shift to a circular, low-carbon economy that meets society's

current and future needs for food, goods and energy

Definition of bioeconomy

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Definition identified based on four common elements of survey & interview results

Complementation or

substitution of existing fossil-

based and non-renewable

materials to support a shift to a

low-carbon economy

Bioeconomy describes the sustainable production and utilization of biological renewable resources and

aims at complementing or substituting existing fossil-based and non-renewable materials to support a

shift to a circular, low-carbon economy that meets society's current and future needs for food, goods

and energy

Production and utilization of

biological renewable resources

& waste streams

Source: WBCSD; BCG analysis

Sustainably meet society’s

current and future needs for

food, goods and energy

Enabler for & link to the

Circular Economy

Definition of bioeconomy

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Current biological part

of Circular Economy

Future substitution of non-

renewable materials

Non-circular

incineration of biofuels

WBCSD to focus on innovative circular bioeconomy part

Source: WBCSD; BCG analysis

Proposed project focus ensuring

no double work with existing ones

Definition of bioeconomy

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Bioeconomy concept consist of materials that are currently circular, substitute non-renewable materials or are not circular

Source: WBCSD; BCG analysis

• Use of renewable, biological materials

as biomass to create products and

services

• These can be circulated through for

example recycling and/or are bio-

degradable

• Therefore, the nutrients are returned

to the soil at the end of their lifetime

Current biological part of

Circular Economy

• Substitution of current fossil-fuel based,

non-renewable materials through

innovation and the development of new

types of materials

• The developed materials are optimally

circular itself as they can be circulated

through e.g. recycling and/or are

biodegradable at the end of their

lifetime

Future substitution of

non-renewable materials

• Incineration of biofuels as energy

source releases the materials &

nutrients into the biosphere

• As materials can not be circulated and

are also not returned to the soil, this

part of the bioeconomy is considered

non-circular

Non-circular incineration

of biofuels

Definition of bioeconomy

Backup

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Common misperceptions: Bioeconomy is not by nature circular or sustainable, nor are all its products necessarily biodegradable

Common view: Biological resources are

embedded in the natural biological cycle,

which is regenerative by design.

Using biomaterials is therefore viewed as

being circular by definition. However, some

materials either need long periods to

biodegrade, thus disturbing the nutrient

cycling, or are incinerated.

Therefore, the use of biological materials is

not necessarily circular.

Non-biodegradable bioplastics, such as bio-

PET, face the same end-of-life challenges as

conventional plastics: They need to be

appropriately collected and recycled in order

to prevent resource loss and CO₂ emissions,

and to prevent land and marine pollution.

The use of such bio-based plastics on an

industrial scale should thus be linked to

innovation and regulation efforts to improve

the collection, reuse and recycling of

plastics.

Bioeconomy does not automatically pay more

attention to social and environmental

dimensions than the current fossil-fuel

economy.

Trade-offs between biomass production and

ecosystems services (food, biodiversity,

recreation, water, etc.) need to be

integrated into bioeconomy strategies to

avoid negative side-effects and avoid

resource exploitation.

Bioeconomy is circular

by nature

All bio-based materials are

biodegradable

Bioeconomy does per se imply

sustainability

Source: WBCSD; BCG analysis

Definition of bioeconomy

Backup

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Overview of sustainable bioeconomy and its circular and non circular elements

Non circular/to be minimized Circular

Physical processes

Thermochemical processes

Chemical processes

Biotechnological processes

Note: Organic recycling includes wastewater treatmentSource: WBCSD; BCG analysis

Ecosystem (Land, Forest, Marine)

Sustainable biomass production

Biomass processing

Chemicals

Fibers and polymers

Bioenergy

Produce and livestock

Materials

Water &

land use

Pesticides

&

chemicals

Landfill (non-

biodegradable)

Incineration

of fuels

End-use

Organic

recycling

Organic

recyclingRe-use

Re-manufacture

Biodegrade (within month/weeks)

Re-composite

Organic recycling

Re-composite

Organic recycling

(Renew.)

energy

Backup

Definition of bioeconomy

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Agenda of today’s workshop

10 min Project background and progress update

5 min Recap: WBCSD role

10 min Next steps

Source: WBCSD; BCG analysis

10 min Deep dive possibilities

45 min Break out session in groups to discuss deep dives

5 min Recap: Bioeconomy definition & relation to CE

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Bio-economy initiatives: Opportunity for WBCSD F10 BE to become a global unifying business platform and voice for sectors along bioeconmy value chains

National

Regional

Global

Level of

reach

TypePublic/private

collaboration &

coordination programs

Research &

innovation

centers

Industry

associations

Sector

platforms

International

Bioeconomy

Forum (IBF)

Public/private

funding bodies &

incubators

WBCSD role

Source: WBCSD; BCG analysis

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WBCSD with clear

role to play in

bioeconomy sector

Deep dives for program

to be discussed today

Three key differentiation opportunities for WBCSD

Provide unique perspective:• Global reach

• Unique private sector perspective across different industries

and value chains

Support overcoming existing barriers:• Policy support

• Investment & operational costs

• Technological developments

• Scaling-up of production

• Public perception of concept

Bundle comprehensive knowledge:• FSG

• Food Waste and Loss working group

• FReSH

• F10 metrics & policy workstreams

WBCSD role

Source: WBCSD; BCG analysis

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• ~50 countries with dedicated or

developing bioeconomy strategies

• Main focus on capacity building &

education, promoting innovation

and supporting infrastructure (e.g.

through R&D investment)

• Multilateral organizations,

European Commission, individual

authors & scholars offer wide

range of publications on

bioeconomy across industries

• Multitude of initiatives with

different geographic focus and

level of reach

• Concentration on national and

regional initiatives across

European countries

• Bioenergy, biofuels, biorefinery

and biotechnology primary focus

areas

Bioeconomy policies Bioeconomy reports Bioeconomy initiatives

We analyzed the bioeconomy landscape via three lenses

Current

state

Identified

gaps

• Gaps identified regarding

bioeconomy friendly framework

conditions (e.g. removal of fossil

fuel subsidies), international

collaboration and knowledge

sharing

• Globally, CEO-level & industry

focused publication with insights

across biomass feedstock and end-

user industries missing

• Also, scarce information regarding

future potential of overall

bioeconomy

• Less coverage of biopharma

• Unifying global platform across

sectors currently missing

Source: WBCSD; BCG analysis

Backup

WBCSD role

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Detailed analysis of three lenses in pre-read document

Bioeconomy policies Bioeconomy reports Bioeconomy initiatives

Details see page 41 Details see page 51 Details see page 56

Source: WBCSD; BCG analysis

Backup

WBCSD role

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Current policies often

support fossil-fuel materials

through e.g. subsidies

Lack of supportive policies

for bioeconomy

Investment costs restrictive

due to required research &

development

Input materials with higher

general costs

Technology not offering low

cost opportunities yet

Technologies for production

of some bio-based products

already exist, but

innovations in many areas

required

Scaling-up or scaling-down

of many technologies

currently not possible

Material availability,

technologies and

experience compared to

existing alternatives

hindering scaling-up

of concept

Land-use challenge,

perception of Genetically

Modified Organisms (GMO)

and consideration of trade-

offs for biomass use impede

full embracement of

concept

Missing sense of urgency to

change current practices

and unawareness about link

to climate agenda

Policy support

Investment &

operational costs

Technological

developments

Scaling-up

of production

Public perception

of concept

Five key barriers prioritized based on survey results & interviews

AEC D

B

Source: WBCSD; BCG analysis

Backup

WBCSD role

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Agenda of today’s workshop

10 min Project background and progress update

5 min Recap: WBCSD role

10 min Next steps

Source: WBCSD; BCG analysis

10 min Deep dive possibilities

45 min Break out session in groups to discuss deep dives

5 min Recap: Bioeconomy definition & relation to CE

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Seven deep dive possibilities to be discussed during break out session

• Provide narrative

for Members

• Align on concept

understanding

• Analyze

opportunities to

increase volume of

BE products

• Identify successful

business cases,

models & existing

technologies

• Evaluate business

potential & value

streams within BE

• Analyze main

reasons for

existing public

opinion of BE

• Evaluate benefits

& inherent value

of BE to improve

perception

• Identify potential

communication

messages &

channels to alter

perception

• Analyze existing

policies hindering

BE

• Develop new

policies to

support BE

• Assess feasibility

of policy changes

• Reach out to

potential target

audiences

• Link to F10 policy

workstream

• Evaluate current

technology gaps

• Identify existing

technologies to

support scaling

up of concept

• Assess potential

collaboration

opportunities

• Engage different

stakeholder

groups to develop

joint technology

sharing platform

• Assess reason for

price differences

between BE

products and

current

alternatives

• Identify main

cost elements &

options to

decrease them

• Evaluate inherent

value/benefit of

BE products &

options to market

them

• Identify

collaboration

opportunities for

join project

development

• Develop specific

project that

showcases Be

possibilities

• Support existing

initiatives, such

as Nutrient

Upcycling

Alliance

• Identify existing

tools for BE

• Assess main

metrics that are

necessary for BE

business

development

• Develop new

metrics and tools

to support BE

engagement

• Link to F10

metrics

workstream

Narrative of

Bioeconomy Pilot Metrics & tools

Source: WBCSD; BCG analysis

• CEO Guide

• Narrative

• Webpage

• Short publication

• Webpage

• Short publication

• Engagement

campaign

• Collaborative

platform

• Online database

with existing

technologies

/companies

• Collaborations

• Member Guide

• Webpage

• Publication

• Project plan

• Collaborative

platform

• Lighthouse

project

• Online database

of existing tools

• Online tools/

metrics

• Policy

recommendation

• Hand-out for

engagement

options for

businesses

Desc

ripti

on

Poss

ible

outc

om

es

Barrier:

Public

perception

Barrier:

Policy to scale

up

Barrier:

Technology to

scale up

Barrier:

Business case to

scale up

Deep dive possibilities

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Agenda of today’s workshop

10 min Project background and progress update

5 min Recap: WBCSD role

10 min Next steps

Source: WBCSD; BCG analysis

10 min Deep dive possibilities

45 min Break out session in groups to discuss deep dives

5 min Recap: Bioeconomy definition & relation to CE

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Organization of break out session

Introduction break out session & setting up

groups of 5-7 people5min.

Prioritization of deep dives by interest &

WBCSD's capacity to deliver• Which deep dives are most important to you?

• Where do you think the WBCSD can provide the

highest value?

15min.

Discussion of top two deep dives regarding

main outcomes • What are your main goals of the two deep dives

with the highest priority?

• What are the most valuable specific outcomes?

15min.

Short presentation regarding reasoning for

priorities by each group10min.

Source: WBCSD; BCG analysis

Break out session

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Please prioritize deep dives based on your interest & WBCSD's capacity to deliver

Interest

WBCSD’s

capacity

to deliver

Mediu

mH

igh

Medium High

Low

Low

Source: WBCSD; BCG analysis

Break out session

Please use the numbered

post-its to stick to the matrix

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Seven deep dive possibilities to prioritize

• Provide narrative

for Members

• Align on concept

understanding

• Analyze

opportunities to

increase volume of

BE products

• Identify successful

business cases,

models & existing

technologies

• Evaluate business

potential & value

streams within BE

• Analyze main

reasons for

existing public

opinion of BE

• Evaluate benefits

& inherent value

of BE to improve

perception

• Identify potential

communication

messages &

channels to alter

perception

• Analyze existing

policies hindering

BE

• Develop new

policies to

support BE

• Assess feasibility

of policy changes

• Reach out to

potential target

audiences

• Link to F10 policy

workstream

• Evaluate current

technology gaps

• Identify existing

technologies to

support scaling

up of concept

• Assess potential

collaboration

opportunities

• Engage different

stakeholder

groups to develop

joint technology

sharing platform

• Assess reason for

price differences

between BE

products and

current

alternatives

• Identify main

cost elements &

options to

decrease them

• Evaluate inherent

value/benefit of

BE products &

options to market

them

• Identify

collaboration

opportunities for

join project

development

• Develop specific

project that

showcases Be

possibilities

• Support existing

initiatives, such

as Nutrient

Upcycling

Alliance

• Identify existing

tools for BE

• Assess main

metrics that are

necessary for BE

business

development

• Develop new

metrics and tools

to support BE

engagement

• Link to F10

metrics

workstream

Narrative of

Bioeconomy Pilot Metrics & tools

Source: WBCSD; BCG analysis

• CEO Guide

• Narrative

• Webpage

• Short publication

• Webpage

• Short publication

• Engagement

campaign

• Collaborative

platform

• Online database

with existing

technologies

/companies

• Collaborations

• Member Guide

• Webpage

• Publication

• Project plan

• Collaborative

platform

• Lighthouse

project

• Online database

of existing tools

• Online tools/

metrics

• Policy

recommendation

• Hand-out for

engagement

options for

businesses

Desc

ripti

on

Poss

ible

outc

om

es

Barrier:

Public

perception

Barrier:

Policy to scale

up

Barrier:

Technology to

scale up

Barrier:

Business case to

scale up

1 2 3 4 5 6 7

Break out session

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Agenda of today’s workshop

10 min Project background and progress update

5 min Recap: WBCSD role

10 min Next steps

Source: WBCSD; BCG analysis

10 min Deep dive possibilities

45 min Break out session in groups to discuss deep dives

5 min Recap: Bioeconomy definition & relation to CE

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rved.Upcoming

meetings for bioeconomydeep dive

De-brief call April 18th, 2 p.m.

2nd Workshop August, exact date & time tbd

Lisbon CM October 13-16th

Source: WBCSD; BCG analysis

1st Workshop during World Circular Economy Forum, HelsinkiJune 6th, time tbd

Next steps

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Backup Slides – Pre-read document

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Backup SlidesProject background and progress update

Bioeconomy definition & relation to CE

Identified barriers

WBCSD role & deep dive possibilities

Landscape analysis

Source: WBCSD; BCG analysis

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Current "take-make-

dispose" mentality &

reliance on fossil fuels

threaten needs of growing

population

Bioeconomy as economic

growth model relying

entirely on renewable

resources

Competition for land, soil

erosion and water use as

examples for complex

trade-offs and challenges

within bioeconomy

New bioeconomy workstream

to analyze current economic

opportunities & risks and

identify suitable business

models to scale-up

bioeconomy

Fossil fuel reliance

no longer sustainable

Bioeconomy provides

promising alternative

F10 workstream to

provide guidance

Sustainability trade-

offs to be considered

WBCSD to support shift from fossil fuel economy to circular bioeconomy through new F10 workstream

Source: WBCSD; BCG analysis

Project background &

progress update

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Collaboration between WBCSD, its members & BCG to ensure success

Source: WBCSD; BCG analysis

Constant

alignment &

mutual support

Analytics and Data

• Provide relevant market data

• Structure data requests and

expert interviews

• Conduct research & analyses

Expertise

• Bring in additional data and

best practices

• Include BCG topic experts

Communication

• Prepare presentations

• Lead alignment meetings

• Prepare interviews

WBCSD members/

FSG

Information

• Efficiently provide available

information and data from

research

• Provide access to key

stakeholders & experts

• Support preparing research

data for analysis

Motivation

• Ensure time commitment

from team

Involvement

• Regular touch points with BCG and

timely feedback for alignment

Project background &

progress update

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Backup SlidesBioeconomy definition & relation to CE

Identified barriers

WBCSD role & deep dive possibilities

Landscape analysis

Source: WBCSD; BCG analysis

Project background and progress update

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Many different definitions used by organizations across the world Selected, non-exhaustive examples of definitions

Source: BBSRC—Bioscience for the future; WBCSD; BCG analysis

Definition by Global Bioeconomy Summit often used … … but many other similar definitions exist

Bioeconomy as the knowledge-based

production and utilization of biological resources, innovative

biological processes and principles to sustainably provide goods

and services across all economic sectors

Definition used at the Global Bioeconomy Summit 2015

FAO uses the GBS definition and specifies three

elements

All economic activity derived from bio-based products and

processes which contributes to sustainable and resource-efficient

solutions to the challenges we face in food, chemicals, materials,

energy production, health and environmental protection

Chair of the UK’s three bioscience leadership councils

Bioeconomy as the set of economic activities in which

biotechnology contributes centrally to primary

production and industry

OECD

Bioeconomy is defined as the production and utilization

of biological resources (including knowledge) to provide products,

processes and services in all sectors of trade and industry within the

framework of a sustainable economy

Bioeconomy Council

Sustainable Bio-Economy: Lead the transition to a low-carbon and

Circular Economy through the supply of renewable products from

sustainable working forests to substitute fossil-based materials

WBCSD FSG

• The use of renewable biomass and efficient bioprocesses to achieve

a sustainable production

• The use of enabling and converging technologies, including

biotechnology

• Integration across applications such as agriculture, health and

industry

1

2

3

Definition of bioeconomy

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Scope and definitions vary by country

1. German Bioeconomy Council (2016)Source: Bioeconomy Policy (Part III) Update Report of National Strategies around the World (German Bioeconomy Council 2018); WBCSD; BCG analysis

Defined concept of the (sustainable) "forest-based bioeconomy"

Bioeconomy contribution closely linked to Circular Economy

Bioeconomy relate more strongly to concepts of high-tech innovation

• "industrialization of biology"

• "synthetic biology strategy"

• "biologization of economy" or "biological transformation of industry"

Knowledge-based production and utilization of biological resources, innovative biological

processes and principles to sustainably provide goods and services across all economic sectors1

Selected examples

"Blue bioeconomy" - Potential of marine resources (e.g. algae, seaweed, by-products from

fisheries & aquaculture), marine compounds (including enzymes, polymers and carbohydrates)

Definition of bioeconomy

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WBCSD members with varying focus in three areas regarding definition

Note: BE=Bioeconomy, CE=Circular EconomySource: WBCSD; BCG analysis

Definition of bioeconomy

Based on exclusion of industries like

bioenergy, livestock and pharmaceuticals

by the US

Exclusion of certain industries

Majority of interviewees favor inclusion

of all sectors

Inclusion of

all sectors

Exclusion of energy,

pharma, livestock,

food & feed

Inclusion of

social capital

Pure material

focus

Inclusion of social aspects throughout the

value chain versus a pure material focus

Inclusion of social capital

No clear preference within interviews,

mentioning of "sustainable" within

proposed definition

Different interpretations of common and

divergent elements of both concepts

Relation to Circular Economy

• BE is more than CE

• BE is part of CE

• Bio-based materials by definition

circular

• Not all bio-based material being

biodegradable

BE considered enabler of CE, ultimate

goal circular bioeconomy

Description

Interviewee

opinion

Result

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35

Additional comments:

• Bioeconomy is not ‘one size fits

all’ but will vary depending on

location, infrastructure,

logistics, resources etc.

• Achieving sustainable

agriculture and Circular

Economy

• Low carbon circular solutions

• Exploring new investment

models to support the bio-

economy transitions

• Relationships with Circular

Economy

• More clear consideration of

impacts on biodiversity and

clear understanding that the

way we use land/forests has

very significant impact on

carbon sequestration and a total

carbon footprint

• Inclusion of (rural) communities

by ensuring policy tools to

promote business models that

include benefit sharing across

the value chain

Survey participants consider three elements most important

100800 6020 40

Considering social and societal aspects

along the whole supply chain

Production and utilization of biological

renewable resources & waste streams

Sustainably meet society’s current and future needs

for food, energy, goods and industrial processes

% of total respondents

Substitution of existing fossil-based

and non-renewable materials to support

a shift to a low-carbon economy

Other elements

Transformation and growth opportunities

based on product, process and

business model innovations

Relevance for all economic sectors

Acting as accelerator of current economic levels

by providing new and innovative materials

Sustainable and renewable provision

of goods & services

Very important Important Moderately important Not importantSlightly important

Source: WBCSD; BCG analysis

Please rate the following elements based on their importance to be included in WBCSD’s definition of the bioeconomy

Definition of bioeconomy

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Interviewed WBCSD members' definition mostly in line with EU definition

Industry Sub-segment EU definition US definition WBCSD members Comment WBCSD members

Agri- & aquaculture Feed

Agriculture for most of the

interviewed members part of the

definition

Food, beverages & food additives

Livestock

Pesticides

Crop & plant production

Chemicals & pharma Biochemicals -

Biopharma -

Health care/cosmetics -

Forestry Paper, pulp & wood -

Textiles Fibers -

Automotive Vehicles Mostly all sectors considered to be

potentially relevant

Tires -

Construction Building materials Mostly all sectors considered to be

potentially relevant

Consumer Beauty care & household products -

Furniture Mostly all sectors considered to be

potentially relevant

Tobacco Not specifically in- or excluded

Packaging Cardboard / Cartons / Plastics -

Utilities, waste & water Bioenergy & -fuels Divergent opinions

Waste water Relevant due to nutritious content

Excluded IncludedLegend:

Note: Sub segments non exhaustiveSource: USDA; EC; WBCSD members' interviews; WBCSD; BCG analysis Not specified /

divergent opinions

Definition of bioeconomy

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Bioeconomy and Circular Economy concepts have largely been developed separately, and need to be connected to reinforce each other

The Circular Economy is an economic model that is

regenerative by design. The goal is to retain the value

of the circulating resources, products, parts and

materials by creating a system with innovative

business models that allow for long life, optimal

(re)use, renewability, refurbishment, remanufacturing

and recycling. By applying these principles, companies

can collaborate to design out waste, increase resource

productivity and maintain resource use within

planetary boundaries

A bioeconomy offers the possibility to substitute

fossil-based, non-renewable and non-biodegradable

materials with renewable, bio-based and often

biodegradable solutions, that in many cases also offer

new innovative functions that circularity alone cannot

offer

Definitions often focus only on production and

utilization of biological resources, therefore the

inputs and beginning of the value chain

Bioeconomy Circular Economy

Bioeconomy can help to establish an economy that is less

dependent on non-renewable resources, more easily

circular, recyclable and less polluting, thus being an enabler for the Circular

Economy

Circular Economy can help to make the bioeconomy more

resource efficient and restorative in nature

Source: WBCSD members' interviews; WBCSD; BCG analysis

Key challenge to

showcase that BE

can be more – but

optimal solution is

circular BE

Definition of bioeconomy

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Bioeconomy substitutes non-renewable materials of the Circular Economy, but is not fully circular itself

Collection

Source: WBCSD; BCG analysis

Retails and service provider

Product manufacture

3 Non circular part1 Biological part of CE

2 Extension of CE

Innovations to substitute

required non-renewable

materials

Biogas

Biological materials

Soil restoration

Anaerobic digestion and

composting

Farming and collection

Biochemical feedstock

Refurbish and

remanufacture

Maintain

Non-renewable

materials

Consumer

Mining and materials

manufacturing

Materials and parts

manufactured

Definition of bioeconomy

Processing

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Industrial waste

General material and production flow in the bioeconomy

1. Except wood products, e.g., fiber cement Source: WBCSD; BCG analysis

Household/end-user waste

Bioelectricity

Furniture

Pulp & paper products

Textiles

Beverages

Tobacco

Animal feeds

Plastic packaging

Food & food additives

Biofuels

Pharmaceuticals

Dyes (pigments, paints & coatings)

Apparel

Leather

Rubber products (e.g. tires)

Wood products (except furniture)

Household & consumer goods

Vehicle components

Plastic products

Building materials1

Crops & plants

Bacteria & Fungi

Agricultural waste

Agriculture

Wood

Seeds

Forestry waste

Forestry

Fishery & by-catch

Algae & seaweed

Aquacultural waste

Aquaculture

Produce & livestock• Fruits, vegetables, sugar,

eggs, milk, meat

Bioenergy• Ethanol, Diesel, Wood fuel

Materials• Wood fiber materials, Latex,

Tree gum, Pulp

Chemicals• Lubricants, Surfactants, Enzymes

Fibers & polymers• Fibers, Biopolymers; structural &

functional polymers, Elastomers,

Biocomposites

Production of bio-based

products:

Sustainable feedstock

production: Biomass processing:

Definition of bioeconomy

Proportion of boxes indicative for respective volumes in EU (Animal feeds (~45%), food & food additives(~15%), Biofuels & - electricity (~20) & respective biomass processing categories downsized for visual to allow smaller categories (>1%) to appear in diagram)

Work in progress

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Backup Slides

Identified barriers

WBCSD role & deep dive possibilities

Landscape analysis

Source: WBCSD; BCG analysis

Project background and progress update

Bioeconomy definition & relation to CE

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~50 countries around the world already have a (dedicated) bioeconomy strategy or are currently developing one

Note: be = bioeconomySource: Adapted from Bioökonomierat (2018); “Internationale Bioökonomiestrategien"; WBCSD; BCG analysis

Dedicated be-strategy is under developmentBe-related strategy; dedicated be-strategy is under developmentBioeconomy-related strategyDedicated bioeconomy strategy

How the world is gravitating towards bioeconomy policy

Turkey

Sweden

United States

Greenland

South Africa

Japan

Malaysia

IcelandFinland

United Kingdom

SenegalMali

NigeriaColumbia

Mexico

Canada

Brazil

Paraguay

Argentina Uruguay

Namibia

Mozambique

Tanzania

Kenya

Uganda

India

Sri Lanka

Russian Federation

China

Korea

Thailand

Indonesia

Australia

New Zealand

Norway

Luxembourg

Denmark

IrelandLithuania

Austria

Belgium

France

Germany

ItalySpainPortugal

Estonia

Policies

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However, only few of those with quantified targets: No specific action plan in the Americas under review

Country Policy documents (year) Definition of bioeconomy Priority area (e.g. sectors, technologies) Action plan and quantitative goals?

Argentina • Bioeconomía Argentina (2017) Production and utilization of goods and

services based on biological resources,

processes and principles

• Food security, new biomass feedstock

resources (non-food crops, residues

from forestry and agriculture, side-

streams from food industry),

biorefineries, bioeconomy Innovation

in precision agriculture, conversion of

biotechnologies, bioenergy,

biopharmaceuticals

• Plan Provincial de Bioeconomía (2016)

• Argentina Innovadora 2020 (2012)

Brazil • Estratégia Nacional de Ciência, Tecnologia e

Inovação 2016 –2019 (2016)

Generation of innovative products and

services based on the country’s natural

resources and ecosystem services; set of

economic activities related to the

invention, development, production and

use of biological products and/or processes

for the production of renewable energy,

materials and chemicals

• Water, agrifood, energy,

biotechnologies and

biobased processes for conversion of

bioresources into biofuels,

biocomposites and other higher value

biobased products

• Scaling up the low carbon bioeconomy: An

urgent and vital challeng (2017)

• Plano Decenal de Expansão de Energia 2023

(2014)

• PAISS (2012)

• Biotechnology Strategy (2007)

Canada • A Forest Bioeconomy Framework for Canada

(2017)

All economic activities that focus on

converting forest-based resources into

traditional forest products (pulp, paper,

lumber) and new high value products

services (biofuels, biochemicals, advanced

building materials)

Sustainable use of domestically produced

renewable aquatic and terrestrial biomass

for fuels, products, power

• Bioenergy, biofuel, renewable energy,

new industrial applications

• Strategic Plan for a Thriving and Sustainable

Bioeconomy (2016)

US • Billion Ton Bioeconomy Vision (2016) Sustainable use of domestically produced

renewable aquatic and terrestrial biomass

for fuels, products, power

• Bioenergy, biofuel, renewable energy,

new industrial applications• Federal Activities Report on BE (2016)

• Strategy for American Innovation (2015)

• The Farm Bill (2014)

• The Bioeconomy Blueprint (2012)

Policies

Yes No

Regio

n:

Am

eri

cas

Non exhaustive

Source: WBCSD; BCG analysis

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Also, in Asia-Pacific two countries without quantitative targets

Country Policy documents (year) Definition of bioeconomy Priority area (e.g. sectors, technologies) Action plan and quantitative goals?

Australia • Queensland Biofutures 10-Y-Roadm.& Action Plan (2016) NA • Biofuels, biochemicals, bioplastics,

composite biomaterials from

agricultural and algae feedstock,

organic and biogenic waste

resources

Sustainable export-oriented industrial biotechnology & bioproducts sector

worth AUD 1B by 2026 (~$780M)• National Marine Science Plan 2015–2025 (2015)

• Nat. Collab. Research Infrastructure Strategy (2013)

• Opportunities for Primary Industries in the Bioenergy

Sector: National Research, Development and Extension

Strategy (2011) + Workplan (2014)

• Strategic Roadmap for Australian Research

Infrastructure (2011)

• Building a Bioeconomy in South Australia (2011–2015)

China • 13th Five-Year-Plan for Economic & Social Development NA • Biopharma, biomedicine (traditional

Chinese medicine), bioenergy,

biotechnology, biodiesel,

bioethanol, recycling technology

• 13th FYP for Science, Technology and Innovation (2016)

• 13th FYP for Strategic Emerging Industries (2016)

• 13th FYP on Bioindustry Development (2016)

• 12th FYP on Bioindustry Development (2012)

• 12th FYP (2011-2015) on Agricultural Science and

Technology Development (2012)

• 12th FYP for Nat. Strategic Emerging Industries (2012)

New

Zealand

• Primary Sector Science Roadmap – Te Ao Turoa (2017) Set of economic activities

relating to the invention,

development, production

and use of biological

products and processes

• Biosecurity, genetics, advanced

nutrient, soil & water management,

indigenous knowledge,

biorefineries, plant-based proteins,

• Biological Industries Research Fund (2013)

• Business Growth Agenda (2012)

• Bioenergy Strategy (2010)

Thailand • Bioeconomy Roadmap in 2017 Covers economic sectors of

bioenergy, biochemicals,

food and feed for the future

as well as

biopharmaceuticals

• Biotechnology, biorefinery based on

local feedstock,

biopharmaceuticals, functional

foods, advanced vaccines

Within 5 years: Boost R&D expenditure to 4% of GDP, increase economic growth to 5 – 6%, reduce social disparity by ~23% by 2032, min. Thai universities amongst world’s top 100 higher education institutions in 20 years10-year action plan: investment of private & public stakeholders of $11.8B, agriculture % in GDP to double in 10 years, added value of sugar cane increase to ~$97k pa, added value of cassava increase to ~$32k pa, sugarcane & cassava industries to create +300,000 & 500,000 new jobs in10 years, increase investment in biopharmaceuticals to ~$3.2B, increase export of biopharma products to ~$ 2.4B in next decade, creating 20,000 new jobs in R&D, GHG reduction targets

• Thailand 4.0 program (2015)

• National Biotechnology Policy Framework (2004–11;

2012–21)

• Alternative Energies Development Plan 2012–21

• BioPlastics Roadmap (2008)

Policies

Yes No

Regio

n:

Asi

a/Pacif

ic

Non exhaustive

Source: WBCSD; BCG analysis

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Similar observation across Europe though generally more BE targeted – WBCSDcould unite member companies in a clear commitment towards bioeconomy

Country Policy documents (year) Definition of bioeconomy Priority area (e.g. sectors, technologies) Action plan and quantitative goals?

France A Bioeconomy Strategy for France (2017) Range of activities linked to production, use and

processing of bioresources

• Precision farming, agroecology, utilization of

waste resources and residues from primary

industries, biorefinery

Five areas of action

• Improvement of knowledge, raising of public awareness on

bioeconomy and biobased products, promotion of the

demand and supply side, sustainable production and

utilization of biobased resources, new financing mechanisms

Stratégie nationale de transition écologique vers

développement durable (2014)

France Europe 2020” (2013)

The new face of Industry in France (2013)

National Biodiversity Strategy 2011-20 (2011)

Italy Bioeconomy in Italy: A unique opportunity to reconnect

economy, society and environment (2017)

Integration of sustainable production of renewable

biological resources and conversion of these

resources and waste streams into value-added

products such as food, feed, biobased products,

bioenergy

• Agriculture, forestry, agri-food sector, marine

bioeconomy, biobased industries, green/plant-based

chemistry, next gen biofuels, bioplastics,

biopharmaceuticals, cosmetics, biobased building

materials, biofertilizers, biolubricants and essential

amino acids for feed production

Latvia Latvian Bioeconomy Strategy 2030 (LI-BRA) (2017) Sustainable utilization of renewable natural

resources (plants, animals, micro-organisms) for

producing food, feed, industrial products, energy

Also refers to promotion of biobased services in

construction, catering, accommodation sectors

• Primary industries (agriculture, forestry, fisheries) for

innovative plant and animal breeding technologies,

manufacturing, e.g., food and feed, wood, chemical,

pharmaceutical, textile, biorefinery

• Employment in bioeconomy should increase by 128,000

employees by 2030, added value of biobased products should

increase up to at least €3.8B by 2030, bioeconomy-related

exports should be boosted to at least €9B by 2030

Norway Familiar resources—undreamt possibilities (2016) Sustainable, effective and profitable production,

extraction and use of renewable, biological

resources for food and feed, health products,

energy, industrial materials, chemicals, paper,

textiles and numerous other products

• Biorefinery development in food and wood industry,

biotechnology, nanotechnology and ICT,

biopharmaceuticals and food ingredientsResearch Programme on Sustainable Innovation in Food and

Biobased Industries (2012-2022)

National Strategy for Biotechnology (2011)

Marine Bioprospecting—a Source of New and Sustainable

Wealth Growth (2009)

Spain Extremadura 2030 (2017) Set of economic activities based on products and

services, generating economic value, making

efficient and sustainable use of resources of

biological origin as fundamental elements

• Agri-food, forestry, wood processing, wood

composites, clean energy, green tourism, health

sectors, reuse and recycling technologies,

biorefineries & bioenergy, biopharmaceuticals,

biochemicals, biomass from non-

conventional sources

• Total bioeconomy budget of €1.1B, 2016: Available funds

estimated to add up to €230M, publication of annual action

plans at the beginning of each financial yearHorizon 2030 (2016)

UK Biodesign for the Bioeconomy (2016) Economic activity derived from utilizing biological

resources or bioprocesses to produce products such

as food, feed, materials, fuels, chemicals, biobased

products and bioenergy

• Sustainable materials, chemicals, energy, second and

higher gen. biorefinery, biotechnology, anaerobic

digestion, biocatalysis, algal cultivation, chemical

processing, thermochemical processing

Building high value BE: Opportunities from waste (2015)

Biorefinery Roadmap Scotland (2015)

Science and Innovation Strategy for Forestry (2014)

Agri-tech Industrial Strategy (2013)

High-value Manufacturing Strategy (2012)

UK Bioenergy Strategy (2012)

Natural Environment White Paper (2011)

UK Biomass Strategy (2007)

Policies

Yes No

Euro

pe

Non exhaustive

Source: WBCSD; BCG analysis

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National policy measures for promoting bioeconomy particularly strong in capacity building, stimulating R&D and infrastructure …

Americas Asia/Pacific Europe

Key points Practical and proposed policy measures Argentina Brazil Canada USA Australia China New Zealand Thailand France Italy Latvia Norway Spain UK

Promoting

innovation

• Public R&D

• Traditional knowledge and low-tech innovations

• Stimulating private actor R&D

(e.g., through-public private partnerships)

• Social innovation (e.g., open science, citizen science)

• Research networks, consortia, CoE etc.

Supporting

infrastructure

• Bioeconomy hubs, networks, cluster

• Investment for R&D facilities and equipment

• Investment in the digital infrastructure

• Urban greening projects

• Pilot and demonstration facilities

• Biorefinery demo plants

Supporting

capacity

building and

education

• Capacity building

(e.g., trainings for professionals)

• Bioeconomy education programs

(incl. masters and doctoral programs)

Supporting

commericia-

lization

• Access to capital for biobased companies

• Tax incentives for biobased companies

• Knowledge and technology transfer

• Access to scale-up facilities

• Export promotion policy

• Development and marketing efforts

(e.g., feasibility studies)

• Subsidies for (increased production and use of

renewable resources)

Supporting the

demand-side

• Biobased public procurement policy

• Certification and labels on a product’s life cycle

impact (e.g., foot print)

• Consumer information and communication campaigns

• Price setting

• Tax incentives

• Fuel quality standards

• Ban of fossil based products, e.g., plastic bags

Policies

64%

60%

43%

39%

x% Measure coverage across countriesSource: German Bioeconomy Council (2018); WBCSD; BCG analysis

79%

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… but with gaps in framework conditions as well as international collaboration and knowledge sharing – The latter clear opportunity space for WBCSD

Americas Asia/Pacific Europe

Key points Practical and proposed policy measures Argentina Brazil Canada USA Australia China New Zealand Thailand France Italy Latvia Norway Spain UK

Ensuring

bioeconomy-

friendly

framework

conditions

• Removal of fossil fuel subsidies

• Policies for sustainable development

• Review of IP regulations

• Bioprospecting regulations

• Global data policies (e.g., open data commons policies)

• Review and harmonization of biotechnology policies

• Regulations for sustainable biomass production

and utilization

• Regulatory framework for bioenergy

• Carbon tax

• Circular Economy regulations (recycling quotes, use

of by products, eco-design, life-cycle assessment

of patents

• Regulations for the uses of biobased materials

in construction

• Development of regional bioeconomy policy strategies

Promoting

good

governance

• Inter-ministerial and inter-regional cooperation

• Monitoring and measuring activities

• Evaluation of policy programs

• Public reporting and multi-stakeholder dialogue

• Learning and adaptive policy

• Level-playing field for biobased businesses

• Bioeconomy advisory council

Enhancing

international

collaboration

in the

bioeconomy

• Harmonization in international trade and

policy frameworks

• Knowledge sharing between industrialized and

developing countries

• Private investment in developing countries

• International monitoring, e.g., satellite tracking

• Inter-regional policy dialogue

• Bi-and multinational cooperation

• International R&D cooperation

55% 41% 37% 53% 27% 53% 35% 36% 54% 41% 47% 34% 51% 38%Country overall measure coverage

Policies

15%

30%

15%

x% Measure coverage across countriesSource: German Bioeconomy Council (2018); WBCSD; BCG analysis

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Initiatives to foster bioeconomy policies driven at macro-regional, sub-regional and industry level

Macro-regional initiatives Sub-regional development Industry-driven Initiatives

• BioInnovate Africa

• Southern Cone Initiative

• BIOEAST

• Baltic Sea Region

Bioeconomy Council

• EU Research and

Innovation Strategies for

Smart Specialization (RIS3)

• Ongoing actions within

single countries, e.g.

Argentina, Australia,

Canada

• Japan Bioindustry

Association (JPA) estimates

BE to add $142–237 billion

to GDP by 2030

• Indian ABLE1 values Indian

BE at $100 billion by 2025

1. Association of Biotechnology-Led EnterpriseSource: Bioeconomy Policy (Part III) Update Report of National Strategies around the World (German Bioeconomy Council 2018); WBCSD; BCG analysis

321

Policies

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Overview: Macro-regional policy initiatives across regions as a pillar to share knowledge and enable capabilities

ESIF, European Structural Investment Fund: +€450 billion for the period 2014-2020 financial support for macro-

regional initiatives• Central and Eastern European Bioregions Forum resulting in Lodz Declaration of Bioregions, a strategic

document for bioeconomy development in local “biocommunities”

• BIOEAST Central-Eastern European Initiative for Knowledge- based Agriculture, Aquaculture and Forestry in the Bioeconomy promotes a strategic vision for BE development in this region

BioInnovate Africa: Bioresources Innovations Network for Eastern Africa Development (Burundi, Ethiopia,

Kenya, Rwanda, Tanzania and Uganda)

• Program focuses on promoting bioinnovation policies that enable technology transfer and business

development across countries

In LatAm, the UN-ECLAC organizes macro-regional events on bioeconomy to foster exchange on policy

making and successful private sector and research initiatives

• Southern Cone Initiative: Coordination and collaboration to jointly develop bioeconomy policies and

programs across Argentina, Brazil, Uruguay and Paraguay

Source: Bioeconomy Policy (Part III) Update Report of National Strategies around the World (German Bioeconomy Council 2018); WBCSD; BCG analysis

Selected examples

1

Policies

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Overview: Sub-regional policy initiatives aiming to adapt to local specifications

Several regions to link bioeconomy development with their Research and Innovation

Strategies for Smart Specialization (RIS3) within the ESIF

European Commission 2017 report1 highlighted that

• Special focus across region in rural areas rural areas due the significant primary

production sector

• Most of EU territories include bioeconomy related aspects in their 2014-2020 R&I

priorities and plans

• Despite no territorial pattern, some topics are frequent across countries like agri-food,

bio-based fuels and bioenergy, biorefinery, biochemicals and biopharmaceuticals

• Several regions under this platform including Central Hungarian region, Crete (Greece),

Lapland (Finland) and Upper Austria

1. Bioeconomy development in EU regions. Mapping of EU Member States’ / regions’ Research and Innovation plans & Strategies for Smart Specialisation(RIS3) on Bioeconomy, Final Report 2017Source: Bioeconomy Policy (Part III) Update Report of National Strategies around the World (German Bioeconomy Council 2018); WBCSD; BCG analysis

2

Policies

Selected examples

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Overview: Industry-driven initiatives to ensure all economy sectors' involvement and contribution

Japan Bioindustry Association

(JPA)

• Health and medical sector,

environmental technologies,

agriculture, fisheries and food

processing

• JPA estimates that the future

bioeconomy will contribute $142–

237 billion to the GDP in 2030

Association of Biotechnology-Led

Enterprises (ABLE)

• Indian bioeconomy may amount to

$100 billion by 2025

Bio-Based Industries Joint Undertaking

(BBI JU)

• €3.7 billion-backed public-private

partnership (funds & private investment)

• Promoting bioeconomy and fostering

sustainable biomass and its efficient

conversion into high-value bio-based

products

Bio-based Industries Consortium (BIC)

• Published the first overview of financing

opportunities for bio-based business

projects

Source: Bioeconomy Policy (Part III) Update Report of National Strategies around the World (German Bioeconomy Council 2018); Japan Association of Bioindustries Executives; WBCSD; BCG analysis

3

Policies

Selected examples

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Debate on bioeconomy mainly driven by global multilateral organizations, individual authors & European Commission - EC with strong publication record

Multilateral organizations

• Bio-based industries consortium

• FAO

• OECD

• Since 2013 various publications on

bioeconomy and underlying regulations

in Europe

European Commission

• Dietz et al.

• Ellen MacArthur Foundation

• Hetemäki et al.

Individual authors & scholars

Source: WBCSD; BCG analysis

Reports

A B C

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Multilaterals offer holistic view on bioeconomy across feedstock, however with gaps in specific industry use cases

Author Report title Year No. Pages Content Agri Forestry

Fishery/

marine MSW1

Focus

industries

Incl.

estimates

on BE

market size

Incl.

company

case

studies

Bio-based industries

consortium

European Bioeconomy 2008-2015 2018 17 Assessment of turnover and employment of the

European bioeconomy for the year 2015

NA

Centre for European

Policy Studies (CEPS)

The Role of Business in the Circular

Economy - Markets, processes and

enabling policies

2018 80 Report on role of business in developing a Circular

Economy, including section on bioeconomy

x x x NA

European

Environment Agency

The Circular Economy and the

bioeconomy

2018 64 Comparison of Circular Economy and bioeconomy x x x x NA

European Forest

Institute

A forest-based circular bioeconomy for

southern Europe: Visions, opportunities

and challenges

2018 124 Evaluation of current situation & policies regarding

bioeconomy in southern Europe including future

opportunities for forests

x Energy,

manufacturing,

construction,

transport, tourism

European Investment

Bank

Agriculture and bioeconomy 2018 12 Overview of European Investment Bank's

engagement in bioeconomy

x x Agriculture

FAO Assessing the contribution of

Bioeconomy to countries’ economy

2018 67 Study reports and analyses how different countries

are measuring the contribution of bioeconomy (BE)

to overall economy or country objective

x x x x NA

OECD Realising The Circular Bioeconomy 2018 74 Summarises intersection of Circular and

Bioeconomy concepts into Circular Bioeconomy to

show how they can work with each other/united

approach to developing sustainability

x x x x Waste bio-refineries

OECD Meeting Policy Challenges for a

Sustainable Bioeconomy

2018 199 Bioeconomy Policy challenges over the world x x Agriculture,

fisheries, energy,

education

Energy Transition

Commission

Better Energy, Greater Prosperity 2017 120 Report on possible energy transition pathways.

Includes insights into land and food production

issues related to bioenergy

x x x Energy

1. Municipal solid wasteSource: WBCSD; BCG analysis

Non exhaustive

Biomass feedstock

Reports

Yes No

Mult

ilate

ral org

aniz

ati

ons

A

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First EU publications on bioeconomy already in 2012 with significant growth, offering a comprehensive view across all feedstock as well as economics

Author Report title Year No. Pages Content Agri Forestry

Fishery/

marine MSW1

Focus

industries

Incl.

estimates

on BE

market size

Incl.

company

case

studies

European Commission CORDIS results pack on bio-based

innovation

2018 32 A thematic collection of EU-funded research and

innovation results

Chemical,

pharmaceutical

European Commission A sustainable bioeconomy for Europe 2018 107 Overview of required policy priorities to support

bioeconomy development

NA

European Commission Bioeconomy development in EU regions 2017 95 Mapping of current BE policies & projects of EU

Member States

Agriculture,

forestry, energy,

pharmaceutical,

chemical

European Commission Bioplastics: Sustainable materials for

building a strong and circular European

bioeconomy

2017 20 Information regarding bioplastics options and

markets

Biotechnology

European Commission Biomass supply and demand for a

sustainable bioeconomy

2017 40 Summary of workshop regarding biomass supply

and demand

Energy

European Commission All aboard for better marine

stewardship through research and

innovation

2017 24 Analysis of current options for better marine

stewardship

Aquaculture

European Commission JRC Science for Policy Report

bioeconomy

2016 124 Overview of policies, economic indicators, sectors

and environmental impact of bioeconomy

Agriculture,

forestry, energy

European Commission A global view of bio-based industries:

benchmarking and monitoring their

economic importance and future

developments

2016 84 Country strategies to foster the bioeconomy and

initiatives taken to date to measure this sector and

understand its relevance

NA

European Commission Where next for the European

bioeconomy?

2015 34 Opinions from EU Bioeconomy Panel and Standing

Committee on Agricultural Research WG

Agriculture

European Commission Sustainable agriculture, forestry and

fisheries in the bioeconomy

2015 142 Background to set research and innovation agenda,

establish priorities and ground for policies on

bioeconomy

Agriculture,

forestry, fisheries

European Commission Innovating for sustainable growth – A

bioeconomy for Europe

2012 64 Information about the EC's updated strategy for

bioeconomy

NA

European Commission Investing in European success:

Developing a bioeconomy using

resources from land and sea

2012 48 Selection of projects showing Europe's investment

in research and innovation for bioeconomy

Research &

development

1. Municipal solid wasteSource: WBCSD; BCG analysis

Non exhaustive

Yes No

Biomass feedstock

ReportsEuro

pean C

om

mis

sion

B

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Good mix of focus industries, but lack of comprehensive feedstock coverage within reports from individual authors and scholars (I/II)

Author Report title Year No. Pages Content Agri Forestry

Fishery/

marine MSW1

Focus

industries

Incl.

estimates

on BE

market size

Incl.

company

case

studies

Ellen MacArthur

Foundation

Cities and Circular Economy for Food 2019 66 Includes section on the role of bioeconomy in a

sustainable food system

x x Food systems, bio-

cycle economic

activity

Dietz et al. Governance of the Bioeconomy: A

Global Comparative Study of National

Bioeconomy Strategies

2018 20 A Global Comparative Study of National

Bioeconomy Strategies

NA

Ellen MacArthur

Foundation

Renewable Materials for a Low-Carbon

and Circular Future

2018 13 Fundamentals of Circular Economy, includes

sections on renewable materials with four case

studies from DSM, IKEA, TetraPak, Essity

x x x Bio-plastics,

chemicals (plant-

based resins), bio-

based packaging,

paper recycling

Ellen MacArthur

Foundation

Cities and the Circular Economy for

Food

2018 34 Project brief and introduction to bio-cycle

economy and food

x Food systems, bio-

cycle economic

activity

Quantis Case Study ZELCOR: Zero waste ligno-

cellulosic biorefineries

2018 2 Case study looks into biorefineries to improve bio-

based products

Biomass, Bio-based

products

WBCSD & Boston

Consulting Group

Bridging the gap - The role of green

projects in scaling climate investments

2018 46 Fact base for business leaders and investors on

climate finance, incl. waste to biofuel case study

from Novozymes

x Bioenergy, biotech

WBCSD & Boston

Consulting Group

The new big circle 2018 42 Practical recommendations to successfully

transition towards a Circular Economy, incl. case

study on green home on packaging with organic

material

Packaging material

Accenture Taking the European Chemical Industry

into the Circular Economy

2017 16 Intro to Circular Economy concept for chemical

companies; paragraph on substituting raw

materials with biomass aside re-use, recycling,

recovery, overview of circulation volume potential,

energy and investment needs

x x Chemical sector

Ellen MacArthur

Foundation

Cities and the Circular Economy: An

Initial Exploration

2017 16 Intro to application of Circular Economy concept in

urban setting. Includes section on urban

bioeconomy

x NA

Ellen MacArthur

Foundation

Urban Biocycles 2017 38 Highlights opportunities to capture value, in form

of energy, nutrients and materials embedded in

organic waste flows through application of Circular

Economy principles

x x x x NA

Non exhaustive

Biomass feedstock

Reports

Yes No

Indiv

idual auth

ors

& s

chola

rs

C

1. Municipal solid wasteSource: WBCSD; BCG analysis

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Good mix of focus industries, but lack of comprehensive feedstock coverage within reports from individual authors and scholars (II/II)

Author Report title Year No. Pages Content Agri Forestry

Fishery/

marine MSW1

Focus

industries

Incl.

estimates

on BE

market size

Incl.

company

case

studies

Ellen MacArthur

Foundation

The New Plastics Economy: Rethinking

the Future of Plastics & Catalysing

Action

2017 68 Includes insight about bio-based and biodegradable

plastics

Plastics material,

bio-plastics

Ellen MacArthur

Foundation

The New Plastics Economy Catalysing

action

2017 44 Includes insights into biodegradable plastics Plastics material,

bio-plastics

Hetemäki et al. Leading the way to a European circular

bioeconomy strategy

2017 52 Overview of existing strategies and success factors

for circular bioeconomy development; incl.

economic and environmental impacts of select

sectors (textile, plastic, construction)

Construction,

plastic, textile

PwC Innovation for the Earth 2017 32 Overview of low-carbon applications across 10

technologies, e.g., synthetic biology incl.

bioplastics, synthetic biofuels, agri-waste

conversion, CO2 feedstock conversion

Synthetic biology

Ellen MacArthur

Foundation

The New Plastics Economy: Rethinking

the Future of Plastics

2016 120 Contains insights into bio-based plastics Plastics material,

bio-plastics

Ellen MacArthur

Foundation

Achieving 'Growth Within' 2016 149 Report on Circular Economy investment

opportunities - Includes a section on biorefinery

NA

1. Municipal solid wasteSource: WBCSD; BCG analysis

Non exhaustive

Biomass feedstock

Reports

Yes No

Indiv

idual auth

ors

& s

chola

rs

C

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Most relevant actors and initiatives engaged on regional or local level (I/IV)Overview of actors and initiatives arranged by geography, size and type

Name Geography Type Size Focus areas

International Bioeconomy Forum Global

Inter-governmental

platforms &

associations

European Commission, 9 non-EU countries from all 5 continents,

FAO, BIOEAST, public/private/governmental/academic expertsFood, agriculture

World Bioenergy Association Global

Inter-governmental

platforms &

associations

200 members from 50 countries Bioenergy: Liquid biofuels, biogas, pellets, forestry,

agriculture, waste

Biotechnology Innovation Organization Global

Inter-governmental

platforms &

associations

World's largest trade association representing biotechnology

companies, academic institutions, state biotechnology centers

and others

Innovative healthcare, agricultural, industrial & environmental

bio-technology

International Consortium of Applied

Bioeconomy ResearchGlobal

Research & innovation

center17 member universities

Agriculture, health, chemical, energy industries, bio-

technology, food safety & security, nutrition

Knowledge Center for Bioeconomy Europe

Inter-governmental

platforms &

associations

European Commission Agriculture, forestry, fisheries, Algae, waste

European Bioeconomy Stakeholders Panel Europe

Inter-governmental

platforms &

associations

29 representatives from companies, NGOs, biomass producers,

regions, academia across EuropeBio-economy across sectors

European Bioplastics Europe

Inter-governmental

platforms &

associations

62 member companies along entire value chain of bioplastics Bio-based and bio-degradable plastics

Bio-Based Industries Joint Undertaking

(BBI JU)Europe

Public/private

collaboration &

coordination programs

EU countries, €3.7B investment 2014-2020, thereof €975M EU

funds (Horizon 2020)

Sustainable feedstock supply, biorefineries, bio-fuels, bio-

chemicals, bio-materials

Initiatives

International

Bioeconomy

Forum (IBF)

Source: WBCSD; BCG analysis

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Most relevant actors and initiatives engaged on regional or local level (II/IV)Overview of actors and initiatives arranged by geography, size and type

Name Geography Type Size Focus areas

Joint Programming Initiative on Agriculture,

Food Security and Climate Change

(FACCE-JPI)

Europe

Public/private

collaboration &

coordination programs

24 countries Food security, sustainable intensification of agriculture

Bioeconomy Strategic Working Group (BSW) Europe

Public/private

collaboration &

coordination programs

Reps from 37 EU member, candidate and associated countries

Agriculture, forestry, fisheries, aquaculture, food/feed and

pulp & paper industries, parts of chemical, biotechnological and

energy industries

BioSTEP Europe

Public/private

collaboration &

coordination programs

Consortium of 9 partners from 5 EU countriesStakeholder Engagement and Public Awareness for a

Participative Governance of the European Bioeconomy

Vanguard Initiative (Bio-economy pilot) EuropePublic/private funding

bodies & incubators35 regions in the EU; 7 demo cases of diverse biomass uses

Lignocellulose refinery, bio-aromatics, turning (waste)gas to

value, biogas beyond energy, bio-aviation fuel, food & feed

ingredients from agrofood waste & algae

European Investment Bank (EIB) Agriculture

& Bioeconomy Programme LoanEurope

Public/private funding

bodies & incubators€400M of funding, expected to unlock €1B private investment

Animal & crop production, forestry, fisheries, aquaculture),

forest/paper/pulp industry, bio-energy food retail/wholesale

Bio-based Industries Consortium Europe Sector platforms

200 industry members, 165 associate members (universities,

public institutions), investment of 3,7 €bn in bio-based

innovation 2014-2020 (with BBI JU)

Agriculture, food & feed, aquatic & marine, chemicals &

materials, technology providers, forestry & pulp & paper, waste

management

Bioeconomy in the Baltic Sea Region

(EUSBSR)Baltic Sea Region

Public/private

collaboration &

coordination programs

8 member countries coordinating with EC & other stakeholders,

i.e. member states, regional & local authorities, IGOs, NGOsAgriculture, forestry, fisheries

BIOEASTCentral-Eastern

Europe

Public/private

collaboration &

coordination programs

11 member countries Agriculture, aquaculture, forestry

Initiatives

Source: WBCSD; BCG analysis

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Most relevant actors and initiatives engaged on regional or local level (III/IV)Overview of actors and initiatives arranged by geography, size and type

Name Geography Type Size Focus areas

DanuBioValNet Project

Central-Eastern

Europe (Danube

region)

Public/private funding

bodies & incubators€2.3M budget (2017-2019); 16 member regions in 10 countries

Phytopharma, eco-construction, bio-based packing/bioplastic,

hemp-industry

Bio-Innovate Africa Eastern AfricaPublic/private funding

bodies & incubators

6 Eastern Africa countries, >100 innovators & scientists, >50

universities/research institutes/firms; phase II funding of SEK

100M (~€ 10M) for 5 years

Bio-waste conversion, bio-nutrition, organic fertilizer, bio-

enzymes, bio-energy, sustainable agro-processes, bio-enhanced

seeds & seedlings

Bioeconomy in the North (BiN)Finland,

Germany, Norway

Public/private funding

bodies & incubators

Ministries of Finland, Germany, Norway; €5.5M funding (1st

call)Forest biomass production, lignocellulosic biomass conversion

Spitzencluster BioEconomy, supported by

BMBF (German ministry)Germany, Austria

Public/private funding

bodies & incubators~50 partner companies/institutions

Forestry, non-food biomass, lignocellulosic bioeconomy, bio-

technology, bio-material, green chemistry, residual material

use, waste utilization

Japan Bioindustry Association Japan

Inter-governmental

platforms &

associations

~200 companies, 100 public organizations, 800 individuals from

universities

Biotechnology, molecular biology & cell engineering, bio-

fermentation, bio-chemical, food, bio-pharma

Bioeconomy Council (Bioökonomierat) Germany

Public/private

collaboration &

coordination programs

17 council members advising German government on BE topicFood, bio-energy, bio-fuel, pulp & paper sector, textile, bio-

technology, bio-chemicals, bio-pharma

Sting Bioeconomy Incubator SwedenPublic/private funding

bodies & incubatorsNA Forest-based bioeconomy

Bioscience for the future (BBSRS) United KingdomPublic/private funding

bodies & incubators

Bioscience investment of 498M GBP in 2017/18; 1,600 scientists

& 2,000 research students across UK

Agriculture & food security, industrial biotechnology,

bioenergy, bioscience for health, bioscience

Initiatives

Source: WBCSD; BCG analysis

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Most relevant actors and initiatives engaged on regional or local level (IV/IV) Overview of actors and initiatives arranged by geography, size and type

Name Geography Type Size Focus areas

Biomass Research & Development Board USAPublic/private funding

bodies & incubators8 participating agencies; $8.7M funding (2015) Advanced biofuels, bioenergy, high-value biobased products

IAR, French Biorefinery Cluster FrancePublic/private funding

bodies & incubators

380 members from bio-based value chain (corporate & non-

corporate); €1.7B project investments since 2005

Agriculture, forestry, marine resources, insects, by-products &

residues for food, bio-technology, bio-materials, bio-chemistry,

bio-energy/bio-fuel

Plänet B FinlandPublic/private funding

bodies & incubatorsNA Forestry and forestry product innovations

Bioeconomy research community Oulu FinlandResearch & innovation

centerNA

Biomass production, bio-refineries, bio-materials, bio-

chemicals, bio-composites

Irish Bioeconomy Foundation IrelandResearch & innovation

centerNA

Valorisation of side-streams & residues from agri, food, marine,

other sectors in National Bioeconomy Innovation & Piloting

Facility

Bioeconomy Initiative (University of South

Bohemia)Czech Republic

Research & innovation

centerNA Agriculture, bio-technology

Association of Biotechnology-Led

Enterprises (ABLE)India Sector platforms 400+ members from various industries

Agribiotech, bio-pharma, industrial biotech, bioinformatics,

investment banks, venture capital firms, equipment suppliers

BIOTech New Zealand New Zealand Sector platforms51 members (corporate innovators, investors, regulators,

researchers, social entrepreneurs, interested public)Agricultural, environmental, health problems, biotechnology

Initiatives

Source: WBCSD; BCG analysis

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Identified barriers

WBCSD role & deep dive possibilities

Source: WBCSD; BCG analysis

Project background and progress update

Bioeconomy definition & relation to CE

Landscape analysis

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Additional Comments:

• Subsidized fossil fuels and

lack of ‘carbon taxes’. Bio-

based is not competing on

a level playing field but

rather against heavily

subsidized incumbents

• Price competitiveness with

fossil fuels that still enjoy

effective subsidies

• Existing fossil subsidies and

low cost and strength of

fossil based products and

supply chains

• Unclear role within the

strategy of the company

going forward

• Lack of reliable forecasts

on real footprints of

bioeconomy and

sustainable supply of

bioresources

Survey respondents see scaling-up, policy support, costs and technological developments as main barriers

0

5

10

15

20

Number of answers

Lack of

techno-

logical

developments

Difficulty

to

scale-up

Missing

policy

support

Uncertainty

of

consumer

acceptance

&

perception

Prohibitive

investment

costs

Prohibitive

operational

costs

Unstable

resource

supply

OtherLack of

internal

knowledge

&

capabilities

Missing top

management

focus

Not important Moderately importantSlightly important Highly important

Identified barriers

Source: WBCSD; BCG analysis

What do you see as the greatest barriers to reaping the benefits of the bioeconomy?

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Interviewees highlight six main barriers for bioeconomy

6Main barriers

identifiedProhibitive costs especially compared

to fossil-fuel alternatives

Lack of technological

developments

Trade-offs regarding

resource usage

Public perception of Genetically

Modified Organisms & land use

Difficulty to scale up due to

e.g. low material availability

Missing policy support to change incentives

to move away from fossil-based materials

Source: WBCSD members' interviews; WBCSD; BCG analysis

to scaleIdentified barriers

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Backup Slides

WBCSD role & deep dive possibilities

Source: WBCSD; BCG analysis

Project background and progress update

Bioeconomy definition & relation to CE

Identified barriers

Landscape analysis

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Additional Comments:

• Develop CEO Guide to the

bioeconomy. Lead a study of

the global demand for the

bioeconomy, its products &

services

• To make bioeconomy more

clear for investors via

business cases with

estimations of mid-term

financial implications also

considering TCFD

• Developing commercial

integrated projects with

industry and government

participants to accelerate

deployment and

commercialization

• Dialogue with NGOs as

perception of bioeconomy is

negative among the NGO

community because of the

use of biomass

• Connect politicians with

companies and thinktanks

and universities

Survey shows highest value-add for workstreams in facilitating discussions & sharing best practices

0

10

5

15

20

Sharing best

practices &

successful

business case

examples

Number of answers

Facilitating

discussions

& knowledge

exchange

between

partners and

competitors

along the

value chain

Developing policy

recommendations

for the

bioeconomy

Developing

resources &

measurement

tools for

bioeconomy

(comparable to

Natural Capital

Protocol)

Publishing

industry

specific

reports on the

bioeconomy

Establishing

member

fund and

distributing

funds to

accelerate

existing

initiatives

OtherDeveloping

pilot project

to learn from

firsthand

experiences

Not valuable Highly valuableModerately valuableSlightly valuable

Source: WBCSD; BCG analysis

Where could the WBCSD’s new bioeoconomy workstream provide the most value-add in your opinion?

WBCSD role & deep

dive possibilities

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Survey interviewees prefer a workstream on barriers, interviewees highlight the potential of collaboration to overcome these

Survey: What focus do you think the upcoming workstreams of

the bioeconomy deep dive should have?

Interview: Interviewees mainly mention broad collaboration

as key focus area for deep dives

Initiate discussions across whole value chain and

also include external stakeholders in project,

many different players necessary to create

change

Raise awareness of concept for public & policy

makers and focus on the link towards reaching

climate agenda

Jointly overcome current issues through

collaboration, awareness and the development

of tangible results

1

2

3

Source: WBCSD members' interviews; WBCSD; BCG analysis

1

3

1 1 11

1

3

8

0

4

6

2

Number of answers

Focus on

barriers

Focus on

specific

industries

Focus on

metrics &

measurements

Focus on

specific

production

flows

Focus on

product pilot

Acceptability

of

bioeconomy

8

6

WBCSD role & deep

dive possibilities

Packaging

Paints & coatings

Forestry

Consumer goods

ChemicalsIndustry selection

possible:

All respondents

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• Decrease

investment costs

• Support required

technological

innovations

• Adjust current

policy support for

fossil-fuel materials

• Support BE

development

through new

policies

• Support

development of

new technologies

• Change public

perception

• Create sense of

urgency & illustrate

link to climate

agenda

• Raise consumer

awareness

• Increase credibility

• Ensure

collaboration of

whole value chain

• Increase consumer

awareness &

acceptability

Five additional stakeholders to include in deep dives based on survey & interviews

Funding

bodies Policy makers

Research

institutes NGOs Retailers

Source: WBCSD; BCG analysis

WBCSD role & deep

dive possibilities

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Survey: Which other actors (besides WBCSD members) should be engaged in

the workstream?

Interviews: Who else should

participate in workstreams?

Survey participants & interviewees highlight importance of additional stakeholder groups

0

5

10

15

Policy

makers

Number of answers

Research &

innovation

agencies

Public/

private

funding

bodies &

incubators

NGOs Inter-

governm.

platforms

OthersPublic/private

collaborations

Sector

platforms

Rank 5 Rank 1Rank 4 Rank 2Rank 3

Engage whole value chain

from farmers to retailers

Involve policy makers to

change fossil-fuel

supporting policies

Focus on NGOs for

credibility & to change

consumer perception

Source: WBCSD members' interviews; WBCSD; BCG analysis

WBCSD role & deep

dive possibilities

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68

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