1. Challenges for the Future Bio-EconomyResults of an international web-survey15.09.2011 Sitra, Landmarks Programme

2. Motivation for the survey Bio-economy is here to stay But what is bio-economy today and in the future? In the lack of a joint strategies and in the midst of varying opinions on bioeconomy, the survey aimed at answering he following questions: Is bio-economy more than biomass-based production or biotechnologies? Can it also be seen as a wider societal issue, which affects all of us ? What are the most important challenges to establish the future bio-based economy in businesses and in society in general? And what are the solutions? How do individuals from different sectors see bio-based economy and its challenges (ie. farmers-forest-bioenergy-biobusiness. biotech) The international web survey was conducted to support of the preparations and designing of resolutions for the international Koli Forum on “Resources for smart, sustainable and inclusive growth” held in Finland 14-1.9.2011. 14/09/2011

3. 1. How?Data collection and respondents 14/09/2011

4. Introduction 14/09/2011

5. Data collectionmethod 14/09/2011 June-August 2011: Invitationsby e-mail to variousstakeholders, such as industryassociations, Sitra mailinglists, EU institutions, Koli Forum mailinglists, etc. Resultssummary Question: ”Whatare the challenges for the future bio-economy?” Evaluation of importance of others’ responses Elaboration: Whyarethese the mostimportant for you?

6. Participation and respondentbackgrounds(n=173) 14/09/2011

7. 2. Results for the whole dataThemesarrangedbyimportance and degree of agreement on the importance 14/09/2011

9. Environment

10. Materialflow

11. Global

12. Local

13. Norms

14. Communication

16. Framework for Interpretation of Impulses 14.9.2011 10 AGREEMENT DISAGREEMENT CHALLENGE CLEAR => FindingSolution CONFLICT OVER THE CHALLENGE => FindingAgreement IMPORTANT NOT ON AGENDA => Consciouslyornot POTENTIAL WEAK SIGNALS => Openeyedevaluation NOT IMPORTANT

17. Bio-economy as a business sector 14.9.2011 11 Business view - mostcommonview to bio-economy Importantbutnot the mostimportantaspect Strongfocus on biomassbasedproduction; yetdisagreement on supply of rawmaterials Materialproducts and energyequallyimportant; yettensionrelated to energyuse Highagreement on the need of inputs in R&T&I and economictools Disagreement onnormcontrol Common ground on importantissues Importantbutconflictuousissues - Importance + R&T&I Economic tools Business Supply Pro-duct Norms Bio-mass s Climate & energy Not on agenda Lowinterestbutdeviatingviews - Disagreement +

18. Bio-economy as a societalstrategy 14.9.2011 12 Common ground on importantissues Importantbutconflictuousissues Mostoften, bio-economy is viewed as a strategyrelated to energy & climatechange Maintaining a sustainablenutrient and watercycleis evaluated as the farmostimportantchallenge for futurebio-economy Biomass is rural, butruralaspects and localmaterialflowsarenot on agenda Communicationchallenges Nutrient Water - Importance + Communication Materialflow Climate & energy Local Environment Not on agenda Lowinterestbutdeviatingviews - Disagreement +

20. Nutrients & waterGlobal - Importance + Societalsystem s Materialflow Local Not on agenda Lowinterestbutdeviatingviews - Disagreement +

21. Nutrient(Examples of respondents’ answers) Biomassproduction and usage is both an opportunity and a threat to the nutrientcycle; reaching a balance is necessary. Renewability of the resources and nutrients is onlyone side of the story; production of nutrients and the necessaryenergyhave a largeimpact of theirown. Renewablesdemand a lot of finites (water, fertilizer, land) in theirproduction. The wholeproductionchainhas to understand and show commitment to the bioeconomicalapproach, and beaware of unintendedconsequences. Profitabilitymustnotbeneglected. 14/09/2011

22. Water(Examples of respondents’ answers) Waterleads the choices of sustainableproduction in everyarea; for examplegrowingwater-demanding food in water-richareas. Waterscarcity and itsunevenglobaldistribution is one of the main challenges. Closedcircuitor the minimization of the use of nutrients, waterorenergy? There is somedisagreementbetweenparticipantsconcerning the priorities. 14/09/2011

23. Business (Examples of respondents’ answers) Business shifts the globalbalance of bio-economy as the speed of implementation and technologytransferdiffers. Favorable business environment is one of the keyissuesaffectingchange in the industrialstructure. Long-terminvestment for development and production is alsoseen as a challenge for the bio-economy. SME enterprisesalsofacechallenges in economies of scalewhenlaunching new sustainableproductionmethods. 14/09/2011

24. Product(Examples of respondents’ answers) Food production is the mostsignificantarea of innovation for the futurebio-economy. Various new researchprogrammes and grantsareneeded for moretargetedresearch and innovation. In today’satmosphere products stillneed to carry the associatedenvironmentalcosts in order for greensolutions to beable to compete. 14/09/2011

25. Climate & Energy (Examples of respondents’ answers) The competition for resourcesbetween food and energyproductionwillbestrong in the future. The landareaneeded for bioenergyproduction is a keyquestion. Manyseethat the currentprices of fossilfuelsdonotreflect the externalcosts of theirproduction and use. Pricematters a lot in the competition. Use of landorsea for biofuels? Overallenergyconsumption is expected to rise, whichwillalsoeventuallyhave an effect on the feasibilitythreshold of differentenergy products. 14/09/2011

26. Biomass(Examples of respondents’ answers) The oftenlowrefininggrade of biomass is problematic;If we produce biomass while resources are already scarce, we have to have the most effective processes possible in use. We especially need processes that also work in areas where biomass growth is rather low to actually skip inefficient use of resources. Biomass is readily available in tropical areas. The technology for converting biomass into energy is lacking in most tropical countries. The balance of technological, economic and social development is also dependent on investments in new technology. 14/09/2011

27. R & T & I (Examples of respondents’ answers) Research and innovationarevital for technologicaldevelopment to secure the effectivebio-economy. Sufficientresearchprogramsdemand international coordination and networks. By nature, bio-economy’sresearch and implementationchallengesarecomplex and requiremultidisciplinaryapproaches. In most parts of the world, scientific research is not well applied. It is a matter of education, which makes it hard in most regions of the world. 14/09/2011

28. Societalsystem(Examples of respondents’ answers) Solutions in the bio-economy should aim in sustainability in which economical, ecological and social factors are all working together and making the sustainable solution possible. How can the companies and societies in the bio-economy sectors work together so that the result is beneficial for both of them and better than what they would have reached alone? Bio-economy requires new technical and social processes, which require both money and time to be established. It is so much easier and often cheaper to rely on the old non-renewable and fossil methods. 14/09/2011

29. Environment (Examples of respondents’ answers) Environmental cost accounting and costing principles are one of the main topics throughout the discussion. To thoroughly understand the environmental impacts of choices is a controversial tropic. Several policies and practices, although originally well-intended, may end up wasting more resources than foreseen in the beginning. Governments should address the interdependency between economic and environmental systems. 14/09/2011

30. Norms(Examples of respondents’ answers) The role of governments is seen to be facilitating the change towards the bio-economy by implementing regulations and norms that support the bio-economy activities. Regulations have a big impact on the financial outcomes, access to markets of different operators and competition. 14/09/2011

31. Supply(Examples of respondents’ answers) Availability of biomass for the bio-economy in sufficientquantities and at a tolerableprice for scaled-upproduction is doubted. Promising new supplies in by-products and wastematerials. There is a high agreement on the view that sustainable food production should be secured in every area. Securing the food production serves people in the area - without food production it may be impossible to live in such areas in the future, especially during possible times of crisis. 14/09/2011

32. Communication(Examples of respondents’ answers) Public attitude is a majorchallenge for futurebio-economy. Education and communicationmayshiftattitudes, butittakestime. It is unclearwhether the publictakesitsleadfrompolicymakers, or the otherwayaround. People'smindsetneeds to changedramatically in order to giveroom to the success of bio-economy. Trueactions and truethinkingareneeded. In surveys, peoplearegreenbecausetheyaspire to begreen. However, theirconsumptiondecisionsareoftenanythingbutthat. Ultimately, the publicshouldbeconvincedthat the shift is worth it. 14/09/2011

33. Economictools(Examples of respondents’ answers) Long-terminvestment is one of the majorchallenges. The problem is thatinvestorswantrapidreturns. Therefore, investment for development and production of primary products needmuchsupportfrom national and international levels. Alltoooften is bio-economyseen as an action with no soundeconomicbasis. The role of governments is to facilitate the changetowards the bio-economybyimplementingregulations and normsthatsupportbio-economyactivities. Privateinvestors and innovatorsareneeded, buttheyrequirestablepolicies and regulatoryframeworks. 14/09/2011

34. Materialflow(Examples of respondents’ answers) A life-cycleapproach in usingmaterials is important for the bio-economy. One process’swasteshouldbeanother’s input. Shouldbio-economybe a ”growth” or a ”de-growth” economy? 14/09/2011

35. Global(Examples of respondents’ answers) Is itevenpossible to balance the manydifferinginterests of developed, emerging and developingeconomies? Mechanisms of globalcoordination and cooperationarecalled for, butnotspecified. What is the way to findglobally and locallysatisfactorysolutions? Globalsolutionstend to favorlargecorporationswhohaveoverwhelmingresources and economies of scale. 14/09/2011

36. Local(Examples of respondents’ answers) Localchallengesareinexorablyintertwined with the globalones. Resources, capital and knowledgeareunevenlydistributed, evenwhen the supply is adequate on the globallevel. Production of food withoutincreasingpollution and with the controlling of carbondioxideemissions, in a wayalsoeconomicallysensible for the producer, needs a lot of development. 14/09/2011

37. 3. Examples of individualsuggestions 14.9.2011 30

38. HIGH RELEVANCE, LOW DEVIATION Bio-economyrequires new technical and social processes It is a majorchallenge to change the attitudes and short-termthinking in the politicalarenas – peoples’ mindsetsneed to changedramatically Social rejection and ignorance – ifpeopledonotunderstandit, theywillnotacceptit It is a challenge to change the existingeconomicpoint of view of people (i.e. changing the motivationfactors of buying, fromlowprices to howitwasproduced) The societymustunderstand the importance of cascadeuse Resourcelimits – methods for defining the optimaluse of bio-resourcesareneeded The expectedgrowth of general energy and resourcedemandwillbringtremendouspressure to, alreadyscarce, land, water and fertilizers Securing the supply of naturalresources is a challenge to meet out currentlifestyles and the increasinguse of them The governmentshouldsave the renewableresourcesfromprivatizationsothattheyare in the reach of everyone 14/09/2011

39. HIGH RELEVANCE, LOW DEVIATION (contin.) Cooperation is neededthroughout the chain to makebio-economyprofitable The public and privatesectorhave to puttheirgreedaside and worktogether Private: venture capital; public: incentiveframework Politiciansarenotable to make the unpopularcostlydecisions Trainingpeople for the ruralbio-economy in the urbansociety The basicneeds of developingcountries’ peoplehave to befulfilledbeforetalkingaboutbio-economy to them and usingtheirresources Food productionhas to besecuredeverywhere, meeting the existinglocalneeds The scientists and industryshoulddevelopsolutionseffectiveboth in the bio-economy and the privateeconomy Climatechange is the biggestchallenge in the circumstances of growingneeds of food and energy 14/09/2011

41. LOW RELEVANCE, HIGH DEVIATION A multidiciplineryapproach is needed in bio-economysolutions – cooperationbetweeneveryone in differentsectors, companies and researchfields The challenges and opportunitiesareendless. Withorwithoutbio-economy, wearedrivenevenfurther to innovate in order to maintain the properfunctioning of a globaleconomy of sevenbillionpeople and growing. International relations of producing and consumingcountrieswillrise on the agenda Wehave to focusdegreeprograms on bio-economy Sectorsarealreadycompeting for the utilization of bio-resources – Howshould the sustainabilitybeensuredwhenthedemand is growingfast Weneed to investmore in creativeideas (i.e. products) in creating a new bio-economybeyondenergy In Finland, wedon’tneededucation in bioenergy, lots of youngbio-engineersarewithoutjobs. 14.9.2011 34

42. LOW RELEVANCE, HIGH DEVIATION (contin.) Combiningsustainablitywithgrowth – bio-ecomomyshallprovide a model of continuousdevelopmenttowards the limits of the self-restoringcapacity of nature Difficulties and fears of thinkingdifferently, it is easy to do ”business as usual” Producingcountrieswillbedifferentcomparedwith the fossilera Bioenergy is temporary. Itwillbereplacedbygeoenergy and wirelesstransfer The safety of biomass for certainapplicationshas to beensured (i.e food) LOW RELEVANCE, LOW DEVIATION Small scale is notappreciated – only big enterpriseshavepower in economicpolicy Differingculturalphilosophies of variousgroups (i.e. nimbyvspimby) 14/09/2011

43. Examples of individualsuggestions: HIGH RELEVANCE, LOW DEVIATIONHighlevel of agreement => Search for solutions ”Societymustunderstand” People’smindsetneeds to changedramatically; ourways of working, thinking and consumingneed to becompletelyrenewed Politicianswhothinkthatnextyearsarenotimportant and arenotable to make the unpopularcostlydecisions ”Totally new structuresareneeded” Bio-economyrequiresnotonly new technology, butnew social processes and infrastructure ”Wearenotalone” Cooperation and common language and is neededbetweendifferentbioeconomysectors, and betweenpublic and privateactors. The option of bio-economyhas to beofferedalso for developingnations ”Bio-economy is aboutland, sun, water and nutrients” 14.9.2011 36

44. Examples of individualsuggestions: IMPORTANT BUT CONFLICTING VIEWSHighlytensiousissues => Find common ground ”Bio-businessesstrugglewithcompetitiveness” Althoughincreasingdemand, bio-businessesarestrugglingwithcheapoil, costeffectiveness, landavailability, and problemsrelated to new technologies and innovation ”Bio-businessesare the key” Bio-economy is needed to combatclimatechange The attitude of the oldcore of economics ”Sustainable management and optimization of resources is the key?” Willtherebeenoughresources for the bio-economy? Landstruggles and climatechangewillaffectourresourcebase 14.9.2011 37

46. Number of responsesbybackground

47. Themefrequencybyrespondentbackground: Country

48. Themefrequencybyrespondentbackground: Sector 1/2

49. Themefrequencybyrespondentbackground: Sector 2/2

50. Themefrequencybyrespondentbackground: Affiliation

52. Biomass

53. Environment

54. Climate&Energy

57. Climate&Energy

58. Normcontrol

59. Product- R&T&I

60. Strongsectoraldifferences in thinkingaboutmajorchallenges of futurebio-economy 14.9.2011 46

61. 5. Summary of the results 14.9.2011 47

62. Interpretation of the web-surveyresults 14.9.2011 48 AGREEMENT DISAGREEMENT Conflicts to beresolved: Bioeconomy in society: Bioeconomy & Sustainability (Ecosystems and climatechange) Bioeconomy as business: Biobusinessstrugglewithcompetitiveness Biobusinessesare the key Willtherebeenoughresources? Energy vsmaterialproduction Solutions to besought: Bioeconomy in society: Bioeconomy is aboutland, sun, water and nutrients – food and energyare the keys Societymustunderstand; totally new structuresareneeded Wearenotalone, solutions for developingcoutriesareneeded, too Bioeconomy as business: Need for economictools and R&T&I IMPORTANT Potentialweaksignals: Bioenergy is temporary International relationswillrise in agenda Safety of bioproducts, e.g. food Modelsrelated to the self-restoringcapacity of nature Ignoredaspects: Localproduction and small-scalebiobusinesses Biowaste and materialflows Culturaldifferencesbetweensectors NOT IMPORTANT

64. Bioenergy is onlytemporary

65. International relationswillrise on the agenda

66. Safety of bioproducts, e.g. food

67. HARDLY EVER REMEMBERED:

68. Business potentials / societalimportance of materialflows and ecosystemservices