synthesis report A forest-based circular bioeconomy for southern Europe: visions, opportunities and challenges Reflections on the bioeconomy Inazio Martinez de Arano (coord.) Bart Muys, Corrado Topi, Davide Pettenella, Diana Feliciano, Eric Rigolot, Francois Lefevre, Irina Prokofieva, Jalel Labidi, Jean Michel Carnus, Laura Secco, Massimo Fragiacomo, Maurizio Follesa, Mauro Masiero and Rodrigo Llano-Ponte. synthesis report A forest-based circular bioeconomy for southern Europe: visions, opportunities and challenges Authors (in alphabetical order after the coordinator) Inazio Martinez de Arano, European Forest Institute Bart Muys, Catholic University of Leuven Corrado Topi, Stockholm Environment Institute, University of York Davide Pettenella, University of Padova Diana Feliciano, University of Aberdeen Eric Rigolot, French National Institute for Agricultural Research Francois Lefevre, French National Institute for Agricultural Research Irina Prokofieva, Forest Sciences Centre of Catalonia Jalel Labidi, University of the Basque Country Jean Michel Carnus, French National Institute for Agricultural Research Laura Secco, University of Padova Massimo Fragiacomo, University of L’Aquila Maurizio Follesa, Dedalegno Mauro Masiero, University of Padova Rodrigo Llano-Ponte, University of the Basque Country Reflections on the bioeconomy March 2018 Disclaimer: The views expressed in this publication are those of the authors and do not necessarily represent those of the European Forest Institute. Contents Foreword .......................................................................................................................................... 5 Acknowledgements ........................................................................................................................ 7 Executive Summary ....................................................................................................................... 9 Introduction ...................................................................................................................................13 Crossing the planetary boundaries ............................................................................................13 An emerging paradigm: the circular bioeconomy ....................................................................14 What is the role of the forest-based sector in the circular bioeconomy ..................................20 The forest-based circular bioeconomy in southern Europe as examined in this synthesis report ........................................................................................21 1. Setting the scene: Drivers, enablers and barriers in southern Europe ...............................22 1.1. Social and environmental challenges in the Euro-Mediterranean region ..................22 1.2. Strong bio-based sectors that can lead the bioeconomy transition .............................27 1.3. Forest and forest-based sectors in southern Europe .....................................................32 1.4. Forest-based industries in southern Europe ...................................................................36 1.5. High biological diversity: what is at stake?......................................................................37 2. Forests and forestry in southern European bioeconomy strategies ...................................41 2.1. The European Union strategy: A bioeconomy for Europe ...........................................41 2.2. A bioeconomy strategy for France (2017): Putting photosynthesis at the core of the economy ......................................................43 2.3. Bioeconomy in Italy (2017): A unique opportunity to reconnect economy, society and the environment ............................................................................................45 2.4. Portugal’s green growth commitment .............................................................................46 2.5. Spanish Strategy on Bioeconomy 2030 ...........................................................................49 2.6. Main gaps in national bioeconomy strategies .................................................................50 2.7. Approaches to the bioeconomy in smart specialization strategies ..............................52 3. Potential contribution of forests to a circular bioeconomy in key sectors and different regions .......................................................................................61 3.1. Advanced bio-products: emerging products and technologies ....................................61 3.2 Building with wood: current situation and future prospects .........................................67 3.3 The hidden potential of non-wood forest products ........................................................73 4. Unleashing the potential for the forest-based bioeconomy in southern Europe ..............79 4.1. Creating innovative bio-based products and services ...................................................79 4.2. The bioeconomy needs to be sustainable ........................................................................83 4.3. Adapting to and mitigating climate change ....................................................................90 4.4. Defragmenting forest ownership ......................................................................................96 5. Concluding remarks................................................................................................................103 References ....................................................................................................................................107 Foreword The Basque Country, like the rest of the world, raw materials produced sustainably from our is facing paramount environmental, social territories to preserve and restore our natural and economic challenges. Increasing human capital. The concept of circular bioeconomy wellbeing, prosperity and social justice, while presented in this report can be a decisive de- ensuring the lasting protection of the planet velopment to make these transitions possible. and its natural resources is the great endeav- Furthermore, it holds the promise to reconcile our of our times, one that is challenging and economic development with environmental fascinating in equal proportions. It requires protection in a post-oil era. Forests are a key fundamental changes to our economic mod- component of our landscape and forestry el, and to current patterns in the production is deeply rooted in our culture. We are very and consumption of goods and services. Like happy to have supported the European For- other regions of the world, Southern Europe est Institute in the compilation of this report, needs to find new ways to remain competitive which shows how forests can better contribute in the global economy. This shift relies heavily to the emerging bioeconomy, highlighting on our ability to make the most of the ongoing the opportunities lying ahead and the hurdles digital and biotechnological revolutions, cre- to overcome. We hope this work will generate ate a new generation of industrial capacities, further social debate, increase trans-regional decarbonise the economy and decouple eco- cooperation and stimulate positive action at nomic growth, environmental degradation multiple levels. and consumption of raw materials. This, in turn, requires three important socio-econom- ic transitions: the transition towards renew- able energies and energy efficiency to tackle Bittor Oroz Izagirre climate change. The transition towards a cir- Deputy Minister for Agriculture, Fisheries and Food cular economy, to reduce material intensity of the Basque Government / Chair of the board of making more with less and finally, a biologi- the Basque Institute for Agricultural Research and cal transition towards renewable, indigenous Development, NEIKER. European Forest Institute • 5 Acknowledgements This report and its publication has been -fi and valuable contributions. The report has nanced by the Basque Government´s De- also benefited from helpful comments and partment of Economic Development and insights from external reviewers, Christian Competitiveness. It is based on a synthesis Patermann, Yves Birot and Lauri Hetemäki; of published research papers, grey literature we wish to express our gratitude for their very and reports produced by the European Com- valuable contribution and acknowledge that mission, governmental non-governmental they are not responsible for any shortcomings and corporate organisations and reflects the or remaining errors. Finally, Inazio Martinez authors’ knowledge-based understanding de Arano also wishes to thank EFI colleagues: and views. The ideas expressed here have Carmen Rodriguez, for supporting the re- been discussed and refined in a set of the- view of Smart Specialisation Strategies; Hans matic workshops. We want to thank speakers Verkerk for helping with facts and figures on and participants in the bioeconomy dialogues forests expansion and biomass availability; held in San Sebastian 2016, Calabria 2016 and and Albert Garduño for the excellent edit- Barcelona 2017, for their open discussions ing of the final document. European Forest Institute • 7 Executive Summary Addressing the societal and environmental form and performance economies. But, it is challenges presented by global change requires not enough to develop a strong bio-based sec- fundamental changes to the way our society tor. It is necessary to create a biological frame- produces and consumes goods and services.