The transition to a sustainable energy future hinges on the implementation of robust and well-informed policies. Bioenergy and renewable fuels play a pivotal role in diminishing greenhouse gas emissions, alleviating our dependence on fossil fuels, and encouraging a circular economy. However, for bioenergy to realise its transformative potential, adaptive and effective policy frameworks are paramount. This article distils key findings concerning the policy needs and existing gaps in the sustainable bioenergy sector, drawing from recent research and comprehensive stakeholder feedback. This article is underpinned by the insights from the report “Policy needs and gaps for a sustainable bioenergy sector” a collaborative effort by RISE Sweden, Bioenergy and Sustainable Technologies (BEST), Center For The Study Of Democracy (CSD), and European Renewable Energy Research Centre(EUREC).
Methodology
The policy needs and gaps identified in the report were determined through a combination of methods designed to capture a wide range of perspectives. These included:
- Citizen panels: Gathering diverse insights from citizens across four project countries to address the need for knowledge-sharing, circular economy measures, degrowth initiatives, and enhanced stakeholder cooperation. Participatory methodologies, were employed to inform citizens about bioenergy and its potential to address societal challenges.
- Scenarios foresight: Exploring potential future scenarios for bioenergy development and identifying key drivers and uncertainties. This involved interviews and mini-workshops to assess the implications of different future scenarios on prioritised value chains within the bioenergy and biofuels industry.
- Online stakeholder surveys: Collecting opinions and data from stakeholders involved in the bioenergy sector to identify policy needs and challenges. The survey focused on regulatory frameworks, financial support, specific policy priorities, infrastructure, research and innovation, policy clarity, market incentives, market barriers, integration with other sectors, public awareness, and data and monitoring.
Major needs and gaps
Addressing the opportunities for bioenergy requires understanding and rectifying current policy needs and gaps. Stakeholder feedback emphasizes that clear and stable regulatory frameworks are paramount for investor confidence. To facilitate investment in bioenergy projects, developing robust support mechanisms such as targeted subsidies and tax incentives is crucial. The strategic implementation of feed-in tariffs or Contracts for Difference (CfDs) can provide necessary financial support. Additionally, infrastructure development is vital for supporting the production and distribution of bioenergy, including biorefineries and improved biomass supply chains. Continued research and development (R&D) support is also essential for advancing biofuel technologies through programmes such as Horizon Europe. Furthermore, the enforcement of clear sustainability criteria is necessary to ensure bioenergy positively contributes to environmental goals, with certification schemes enhancing trust in bioenergy value chains.
Despite these needs, several policy gaps persist. A key issue is the lack of harmonisation in policies across EU member states, creating barriers to cross-border trade and project development. This is compounded by market barriers, including insufficient incentives for bioenergy compared to established fossil fuels. Integrating bioenergy policies with other sectors such as agriculture and waste management remains a challenge, limiting the potential for synergistic benefits. Public awareness and acceptance of bioenergy remains low, hindering broader market uptake and policy support. Finally, the lack of standardised data collection makes it difficult to monitor progress and assess the impacts of bioenergy initiatives effectively.Addressing these key policy needs and gaps will enable the bioenergy sector to enhance its contribution to climate and energy goals.
Recommendations
To cultivate a competitive bioenergy sector in Europe, policies must prioritise making bioenergy more economically viable than fossil fuels. This entails streamlining policies and incentives to unlock bioenergy’s potential in various areas, such as defossilising transport and other sectors, reducing carbon emissions, enhancing energy security by reducing fossil fuel imports, creating jobs, and improving social engagement through citizen involvement in energy supply.
Advanced biofuels and bioenergy should be recognised as lasting solutions for the shipping and aviation sectors, as emphasised by FuelEU Maritime and ReFuelEU Aviation. While focusing on these sectors is crucial, maintaining attention on bioenergy’s role in the road sector is equally important, given the time needed for electrification and its limitations in addressing the existing vehicle fleet and long-distance transport. Continued support for research and innovation, aligning with the Strategic Energy Technology (SET) Plan, is vital for reducing costs and CO2 emissions while enhancing energy efficiency in bioenergy value chains. Beyond technological advancements, comprehensive and well-defined policies are needed to navigate Europe’s complex societal challenges related to competitiveness, sustainability, security, and defence. Many of these challenges stem from fossil fuel use, and bioenergy, among other technologies, can contribute to reducing fossil energy consumption in the EU. A comprehensive system perspective is essential, allowing sustainable energy technologies to contribute their respective shares. Integrate various policy initiatives and strategies like the Net Zero Industry Act, Critical Raw Materials Act, SET Plan, and REPowerEU to avoid overregulation and market complications for sustainable energy technologies. Policy interventions supporting sustainable technologies should be complemented by clearer regulations that phase out and limit the market for all types of fossil energy. The transport sector, heavily reliant on fossil fuels, requires a rapid transition to meet set targets. Local, national, and EU-level policy co-creation initiatives involving citizens are essential, ensuring an integrated approach to citizen engagement throughout the policy-making process.
