SWEETWOODS biorefinery © Rene Riisalu
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The European Commission has presented the Clean Industrial Deal, a roadmap for a range of policies to accelerate Europe’s reindustrialisation and decarbonisation. This initiative supports strengthening industrial competitiveness while achieving the EU’s goal of climate neutrality by 2050. CBE JU is looking forward to supporting the Clean Industrial Deal by advancing Europe’s bio-based sector by funding nearly 200 highly innovative projects across regions.
Key business drivers of the Clean Industrial Deal
- Lead markets: create and foster demand for cleantech products through public procurement policies, a low-carbon product label and clear standards for sustainable products.
- Financing: leverage public and private funding to support decarbonisation and competitiveness of industry, with a reinforced role for the EIB and through innovative instruments.
- Circularity as a priority: reduce waste, enhance resource efficiency, and decrease reliance on non-renewable materials. The European Commission plans to introduce a Circular Economy Act in 2026.
- Simplification: streamline regulatory processes such as permitting, approval and authorisations to facilitate faster adoption of innovative products and solutions.
Circular bioeconomy: securing Europe’s resource independence
Circularity is placed at the heart of the Clean Industrial Deal. Making the best possible use of the EU’s limited resources through resource efficiency and reducing waste will create a more sustainable and competitive industrial model that benefits the environment, enhances resilience and reduces the EU’s dependency on fossil-based resources and imports.
Among the measures to accelerate Europe’s circular transition, the European Commission plans to propose a Bioeconomy Strategy and adopt a Circular Economy Act in 2026. Several policy initiatives will support the Clean Industrial Deal across sectors (e.g., the Chemicals Industry Package) and via specific measures to related to improving skills and the financial environment.
CBE JU in action: scaling up bio-based industries
CBE JU has been supporting the objectives of the Clean Industrial Deal by funding projects that scale up circular bio-based industries. These industries convert renewable resources, often waste and residues, into sustainable high-added value bio-based materials and products. These innovative materials and products often have improved properties and increased functionality compared to their fossil-based counterparts.
Transformative bio-based projects driving change
PEFerence: Launched in 2017 and set to conclude in 2025, the €25 million of CBE JU funding has attracted €20 million in private investment to develop 100% bio-based PEF as a sustainable and cost-competitive alternative to PET plastic, reducing reliance on fossil-based packaging while enhancing recyclability and performance.
The project opened its clean industrial plant in Delfzijl, the Netherlands, last October and has attracted interest from brands such as Carlsberg and Henkel.
SWEETWOODS: The industrial plant in Imavere, Estonia, produces high-purity lignin and wood-derived sugars from hardwood biomass, used to create insulation materials, soap and personal care products, sustainable packaging, compostable and biodegradable plastics, and carbon-neutral asphalt. The wood residues are substituting chemicals and materials made from fossil resources with a high CO footprint.
The project has adopted an integrated circular production approach whereby the plant works on 100% renewable energy and most of the water used is treated and reused.
On 15 March 2024, the SWEETWOODS lead partner, Fibenol, agreed with the Latvian government on a €700 million investment to replicate the SWEETWOODS’ biorefinery model at a bigger scale in Latvia.
CIRCLE: This innovative flagship project will upgrade an existing biogas plant to transform food waste streams and other biomass into high-value bio-based chemicals and intermediates such as lactic acid for use in personal care items and cleaning products as well as packaging and automotive applications.
The project will advance the offering of competitive and environmentally friendly solutions to existing products and contribute to the objectives of climate neutrality and zero pollution.
Scaling impact: the role of CBE JU-funded biorefineries
Among its projects, CBE JU has funded 17 highly innovative first-of-their-kind biorefineries across Europe. These industrial-scale facilities demonstrate the commercial viability of bio-based processes, fostering economic growth and environmental benefits. The investments made in these projects have helped create jobs in rural and coastal regions, reduced reliance on fossil-based materials, and contributed to the EU’s decarbonisation goals. To strengthen the EU’s bio-based industries, the joint undertaking has also funded more than 80 demonstration plants to scale up clean technologies.
