The UK is lagging significantly behind international competitors in developing a cohesive strategy for biomass utilisation and the broader bioeconomy, according to a comprehensive white paper published by the Bio-based and Biodegradable Industries Association (BBIA).
Whilst more than 50 nations have published bioeconomy strategies or implemented policies steering towards sustainable biomass use, the UK has no single department responsible for the sector — leaving a critical gap in national policy coordination.
Europe races ahead
Recent mapping shows that across Europe, 12 countries including Germany, France and the Netherlands, have dedicated bioeconomy strategies in place, with a further 10 nations actively developing their frameworks.
In stark contrast, the UK's 2018 "Growing the Bioeconomy Strategy" was quietly withdrawn in 2021, leaving responsibility fragmented across multiple departments with no clear accountability.
"The UK is rich in innovation and scientific talent, but lacks the policy coherence to support businesses beyond scale-up stage," the report says.
Between 2018 and 2024, more than £450 million in UKRI funding was directed towards research and early-stage innovation in the sector, yet these investments have not produced the scale of economic transformation seen in comparable nations.
Biomass hierarchy absent from UK policy
A critical gap highlighted in the report is the absence of a clear biomass utilisation hierarchy. The EU Bioeconomy Strategy prioritises sustainable biomass use by placing food security and ecosystem protection first, material use second, and energy use last — recognising that biomass should primarily create materials delivering tangible climate benefits before being diverted to energy generation.
The UK's 2023 Biomass Strategy, however, remains heavily focused on bioenergy supply, with engineering biology appearing just 12 times in one specific section.
"Its positioning is hardly in line with engineering biology being a strategic technology priority within the UK's ambition to be a global science and technology superpower," the report notes.
Recent research commissioned by the Department for Energy Security and Net Zero (DESNZ) showed that adoption of just 12 high-potential bio-based chemicals could generate over £2 billion in annual revenue and achieve more than 5.2 million tonnes of CO₂ equivalent greenhouse gas savings — greater than savings generated through the Road Traffic Fuel Obligation in 2021.
International models show the way
The contrast with international peers is striking. The European Union has embedded the bioeconomy as a central pillar of both its European Green Deal and Circular Economy Action Plan, establishing a common taxonomy of bio-based products and coordinating funding through Horizon Europe.
Japan updated its Bioeconomy Strategy in 2024 with an ambitious goal to create a 100 trillion yen (£500 billion) market by 2030. The United States' BioPreferred Programme mandates federal procurement preference for certified bio-based goods, whilst the Inflation Reduction Act extends tax credits for low-carbon manufacturing.
"All three models share traits missing in the UK: clear ministerial accountability and measurable objectives," the report states.
Policy vacuum threatens growth
The dissolution of the Department for Business, Energy and Industrial Strategy (BEIS) left accountability for the bioeconomy scattered across multiple departments.
Currently, the Department for Environment, Food and Rural Affairs (Defra), DESNZ, and the Department for Science, Innovation and Technology (DSIT) each touch on aspects of the sector, but without coordination.
Lord Vallance, Minister for Science, Innovation, Research and Nuclear, acknowledged the urgency in April 2025: "There is a real opportunity for engineering biology to provide immense benefits to the UK... We have many of the ingredients to make this a success. But this reaction requires a catalyst. We have a small — and closing — window of opportunity to realise these benefits in the UK. We cannot afford to miss it."
Economic opportunity at risk
The modern industrial bioeconomy sector already comprises more than 1,200 businesses in the UK, generating over £12.5 billion in revenues and supporting 20,300 employees in 2024. However, without strategic direction for biomass provision and utilisation, developers of bio-based chemicals and materials face uncertainty in securing reliable feedstock supplies.
The global bioeconomy market is projected to reach $30 trillion (£22 trillion) by 2050, yet the UK appears ill-positioned to capture its share without urgent policy intervention.
Calls for national framework and biomass hierarchy
The white paper recommends developing a National Bioeconomy Plan, reviewed every five years and monitored by a cross-government Bioeconomy Delivery Council.
It specifically calls for the UK to establish a biomass utilisation hierarchy that prioritises biomass use as feedstock for high-value bio-based chemicals and materials before its use in bioenergy generation.
A designated Minister of State should be appointed to oversee the plan, matching arrangements for net zero and space policy, the report argues.
"Without a clear vision and direction, the UK's modern industrial bioeconomy risks stagnation, as limited financial resources, time and effort are spread too thinly across disconnected initiatives," the report concludes. "A coordinated framework would drive economic growth, provide national resilience, enhance sustainability, and secure the UK's global leadership in this critical sector."
As the government prepares its forthcoming Circular Economy Growth Plan, due in early 2026, industry leaders are pressing for the modern industrial bioeconomy — and a clear biomass strategy — to be embedded as cornerstones of national policy rather than remaining fragmented across departmental silos.
“UK biomass strategy falls short due to lack of bioeconomy framework”
