The whole world is already embarking on a journey to a bioeconomic future, implementing and designing innovative approaches, technologies and business models, as well as accumulating relevant knowledge base. Russia, by far the largest single deposit of bioresources, has not been actively engaged in the global processes of transition yet. So here is what needs to be done to accelerate Russia’s contribution and expansion into the bioeconomic frontier.
Today, the vast majority of vitally important products all around us originate from oil. This leads mankind to irreversible consequences, as petroleum-based products are no doubt the major polluter and emitter of greenhouse gases. Meanwhile, the main principle of bioeconomy is to integrate bio-based products into the production cycle to step away from the dependency on oil and petrochemicals, and give way to independent new renewable materials, such as cellulose. Bioeconomics has been spreading around the globe as the new wave of economic development concept after the digital one, which makes it among the most advanced forms of economic development.
Bioeconomy is not just a concept attributing to sustainability; it offers a whole new era based on different resource extraction and use principles. The global trend towards sustainability led to a general rethinking of the way we consume natural resources and produce goods. Bioeconomics is based on advanced biological technologies embedded in market mechanisms that include responsible consumption, regulatory incentives, financial instruments and solutions.
The forest-based bioeconomy offers one of the best developed cases in strengthening the bioeconomy strategy. Forests possess a stockpile of biomass that can easily serve as a foundation for bioeconomy. Most importantly, forest resources represent an efficient and renewable raw material for bioproducts, which are partially or completely degradable. There are almost 350 types of product that can be sustainably and responsibly produced from forest based raw materials. What is more, forests are home to various types of insect, which can be gathered and farmed as a more environmentally friendly and efficient sources of protein, organic and bio dyes, as well as raw material for medicines.
All of these products come from a renewable resource, and most of them can be reused and recycled.
Forests are a multifunctional resource base for bioeconomy at all levels from energy development, the production of innovative construction materials, the products of the chemical, pharmaceutical and medical industries to the production of nanocellulose and other cutting-edge materials. Nanocellulose and other innovative materials are currently in the spotlight. They are now adopted for production of everyday goods and necessities by many producers. Among the leaders is International Paper, the major global supplier of cellulose fiber. Its innovative fiber solutions across diverse lines of production cycles provide customers worldwide with sustainable innovative products.
The global scale of environmental problems has a direct impact on economic sustainability and the proliferation of established patterns of natural resource use. At the core of the bioeconomy are biotechnologies and innovations. Both make it possible to use natural resources efficiently, avoid depletion and reduce harmful effects on the environment. The shift from linear economies based on non-renewables is most efficient when it is approached through a synergy of bioeconomy and the circular economy. These two represent completely different practices but are mutually reinforcing concepts.
The circular economy and bioeconomy together reduce raw material use, with bioeconomy reinforcing it with the promotion of renewable use rather than depletion, and the reuse of products and recycling so that bioeconomy replaces products originally produced sustainably.
The need to promote biotechnology and strengthen the bioeconomy as a major technology platform arises from the fact that it addresses a range of environmental, social and demographic issues. As a result, bioeconomic principles directly address the majority of ESG, CSR and most importantly SDG.
Among the structural units of the bioeconomy it is possible to outline comprehensive segments such as textiles, forestry, wood processing and paper, fisheries, food, chemicals, medicine and pharmaceuticals, energy and fuel production. The widespread use of the bioeconomy accelerates the achievement of a sustainable environment. In order to make the link explicit, bioeconomy products can be directly linked to SDG goals.
Bioeconomy principles especially fit the SMEs, especially in rapidly developing economies. For example, gathering, selecting and farming high-protein insect species which help the fight against hunger, which is outlined in Goal 2. And the forests indirectly support this goal by preserving fertile soils for harvesting.
The development, promotion and use of bioenergy and biofuels allow access to affordable and clean energy, which is set in Goal 7. This in turn allows the development of a more socially oriented environment through creation of local jobs, avoiding the concentration of population and capital in urbanized environments.
By avoiding the concentration of population and capital in urban areas, bioeconomy contributes to living wages and inclusion of low- and medium-skilled workers, which directly addresses Goals 9, 11 and 15. The efficient use of natural resources, as well as reuse of raw materials in a manner that minimizes environmental damage, makes it possible not only to rationally use raw materials, but it also adds to slowing down climate change, which are Goals 12 and 13.
All sustainable development goals are interlinked, as are many processes in the bioeconomy. And direct improvements from innovation will inevitably have a positive impact on the other Goals. Bioeconomy greatly contributes to the UN SDG and adds to most of them if not all. Whereby engaging in both allows efficient and responsible legislative planning and policy-making on both global and national levels.
Most states have already joined the process of bioeconomic development and started by addressing major legislative barriers. Major countries in different parts of the world such as the United States, Australia and Malaysia recognise importance of developing a relevant knowledge base for policy implications. Identifying bioeconomy as a key area in which state agencies should focus their efforts on and dedicate resources, they support projects and promote action plans for the implementation of the principles of sustainable development, biotechnologies and cyclical use of resources in the economy.
The European Bioeconomy alone is estimated to contribute almost €3 trillion to European GDP and provide jobs to over 20 million people. Food industry is the largest contributor to the EU bioeconomy representing close to one half of the whole pie, with agriculture, forestry and wood processing constituting 26% altogether. Over 1 million new jobs within bioeconomy are expected to be created by 2030. On average, the bioeconomy represents about 9% of EU economy in terms of employment, new jobs and turnover.
The Bioeconomy is not just a concept attributing to sustainability; it offers a whole new era based on different resource extraction and use principles. The global trend towards sustainability has led to a general rethinking of how we consume natural resources and produce goods. Bioeconomics are based on advanced biological technologies embedded in market mechanisms, including responsible consumption, regulatory incentives, financial instruments and solutions
Europe, the Nordic states in particular, are at forefront of the bioeconomic developments, especially in the view of the recently updated European Bioeconomy Strategy. Originally adopted in 2012, it came out together with 14 clear steps reflecting European policy changes to support of all spheres of the bioeconomy. It provided European member states a solid base to develop national initiatives in the field.
Among those at the frontier of the European bioeconomy is Germany, which set the National Bioeconomics Research Strategy 2030. Established as early as 2011 it focuses on the challenges facing states at the moment. It also stimulates scientific activity towards interdisciplinary work and international cooperation and accelerates its practical implementation.
This is key to creating a knowledge-based bioeconomy. The most recent example is Finland. By rolling out a program until 2035, the country is looking to apply restrictions on the use of domestic primary raw materials, boost resource productivity and lifecycle, and circularity rate of materials.
In fact, forests and the forest industry are seen as backbone of EU Bioeconomy. Also, this sector is considered as the primary contributor to climate change mitigation. Forests cover almost 40% of EU hardland. Not surprisingly, in the process of developing the bioeconomy, European countries have paid particular attention to forest-based bio-products. Best practices in forest-based bioeconomics in the world are found in Finland, Sweden, Estonia and Latvia. All of them are also members of EUSTAFOR.
The clear trend in forest industry development is an increasing bias to multifunctional and more efficient use of raw materials. This includes a stronger use of biodegradable fuels and cellulose products as energy source, as well as production of innovative construction materials made of woods and composite materials. As to chemical, pharmaceutical and medical industries it is increasingly about manufacturing of nanocellulose and other revolutionary materials with a stable life cycle, but with characteristics equal to those of common less environmentally friendly substitutes.
Forestry and wood processing industries represent almost 10% of the total turnover of EU bioeconomy (excluding pulp and paper). They create 2.2 million jobs and generate a total worth of €200 billion in sales, with construction as key contributor. Building and construction processes contribute to almost one third of global carbon dioxide emissions, though consuming vast amounts of non-renewable energy and materials.
The eco-efficiency of wood materials is subject to wood storing carbon dioxide absorbed in the process of growth. If not removed from a forest, a mature tree releases all the accumulated carbon dioxide back into the atmosphere as a result of rotting. Cut and used in production of a product (not burned) wood is long-term carbon dioxide storage.
As production one ton of cement leads to emission of about one ton of carbon dioxide, one tree not only preserves up to 900 kg of carbon dioxide per ton but also retains up to two tons of CO2. Thus, replacing concrete with wood in construction will prevent emission of three tons of carbon dioxide per ton of material.
No wonder, multi-storey wooden construction is one of the fastest-growing sectors of global economy hovering to double to over $160 billion by 2025. Innovative wood construction materials have many advantages. The materials are environmentally friendly and sustainable across their life cycle due to their renewability and recyclability. The use of innovative wood-based materials such as CLT panels in construction has an average annual growth of 31%, and so it stands among the fastest-growing segments of the market.
Sweden, Finland, Norway, along with UK and the USA have been leading the transformation of construction industry with multistorey buildings made with innovative wood panels. Among such are churches, schools, university campus buildings, office buildings, hotels and apartment buildings. Overall, the process of switching to wood will improve the quality of the urban environment through the evolution of new architectural forms and design solutions, forestry and responsible resource extraction. It will also create new jobs and sustainable production facilities.
Overall, the principles of the bioeconomy, the circular economy, ecological standards, accountability and threat anticipation should together aim to create a stable business environment and lead to efficient policy creation. An action plan may build on three major pillars. First, there is the need to establish unified standards for harmonising the policymaking process, support relevant legislation and promote international agreements
Russia with its 814.9 million hectares covered with forests composed mainly of birch and pine trees, is actually a home to 55% of all conifers representing and almost 11% of global biomass, remains a sleeping beauty of emerging global bioeconomy. Yet, Russia is still content with disproportionately small share of global market as compared with the countries existing resource base.
Although, there is clear evidence that both private and public sectors take action to improve the situation. On the one hand, the Russian government made explicit the importance of developing the bioeconomy on a national level in 2012 by approving the State Coordination Program for the Development of Biotechnology in Russia called BIO-2020. After that, a team of experts established a technological platform called BioTech2030, a non-commercial scientific and technical partnership, which among other areas focuses on forest biotechnology. The establishment and promotion of such partnerships are in line with the global trend. Not only do they act as research and development bodies but also encourage international cooperation programs and projects.
On the other hand, the private sector response can be illustrated with the case of IKEA in Russia. Ingka Russia, which runs both IKEA and MEGA malls in Russia, established its global goals applicable to their domicile businesses. These aim by 2030 to achieve zero waste and 100% circular and climate positive status. The achievements are to be powered with fully renewable sources of energy and increasing energy efficiency, allow people-oriented policies, promote wellbeing among clients and employees by having co-worker and customer zero-emission footprints.
Forests are detaches as a crucial instrument in reaching these ambitious goals. The vast majority of international companies and corporations adopted measures to achieve sustainable practices, guided by sustainable development goals. And IKEA is no exception. The company along with other industry’s giants became interested in use of responsibly sourced raw materials. So more than 40 million hectares of forests are under voluntary FSC-certification, while the Russian government recently strengthened policies with respect to forest and wood products. IKEA is among the founders of FSC and contributes greatly to spreading of non-compulsory forest certification in Russia. This in turn allows Russia to safeguard a position in top-five sourcing countries for the company. IKEA has also launched a program of take-back pilots in 2019. According to the initiative, approximately 70% of the waste in stores being recycled, and existing closed loops in cardboard waste in the Moscow and Saint Petersburg areas being reinforced.
Clusters are also recognized as an efficient form of cooperation for bioeconomic development. In 2018, an initiative was launched in Leningrad Oblast to form a timber industry cluster. The main objective was to increase the competitiveness of enterprises in the sector through development of networks, the expansion of markets, modernization of capacities and the reduction of logistics. The cluster nowadays encompasses a wide range of activities within the wood-production industry ranging from logging and the primary processing of timber to furniture and components manufacturing. Together, members and participants in the cluster activities have unique opportunities to influence not only production cycles but to integrate innovation and best practice. And thereby to transform the supply chains.
What is more, it is within companies’ best interest to maintain the pace of innovation integration and the rapid adoption of new approaches. The Forestry Department of IKEA Industries Tikhvin LLC has planted 20 million pine seedlings across one of the leased IKEA sites near the city of Tikhvin in recent years. Along with the global sustainability policy, companies share their values across the sites. And it helps global reforestation efforts for the benefit of the whole population, irrespectively to geographical location. This greatly incentivizes others to join the game and follow the trend. The same Tikhvin accommodates other leaders of the industry, such as International Paper. On annual basis, the company aims to preserve and reforest millions of hectares of forests and promote independent forest certification. Sustainable development initiatives, applying to bioeconomic principles to the forest-based bioeconomy, have also made it possible to improve efficiency of the processes within the factory. They also helped to increase transparency and to build trust with local communities and government organizations.
Given the significance of bioeconomy in building a sustainable future for the planet, it is of crucial importance to mobilize all natural resources, talent and technology in a single coordinated programme. Otherwise, the process is unlikely to succeed. Russia with no doubt is a bioeconomic treasure chest as it stores such a potential that can lead to a global breakthrough in bioeconomic development. However, still to be unlocked. In fairy tales, Russia can be said to be a Sleeping Beauty waiting for a Prince to wake her up. Europe can embark on the duty by showing up its powerful progress, existing policy toolset, experience, technologies and knowledge base.
Overall, the principles of the bioeconomy, circular economy, ecological standards, accountability and threat anticipation together should aim to create a stable business environment and lead to efficient policy creation. An action plan may build on three major pillars. First, there is a need for the establishment of unified standards to harmonize the policymaking process, support relevant legislation and promote international agreements. Second, there is the necessity to back bioeconomic transition with rapid proliferation of technology, creation of innovative solutions and frameworks.
Third, it is the promotion environment to raise and unite talent, based on the idea the global shift is made by people for people. The whole population, that is directly and indirectly involved in the process should share the values, knowledge and skill set, where the whole global community becomes a team.
Joining forces towards forest bioeconomic development in Russia should unify the public and private sectors, NGOs and think tanks internationally. This has the potential to strengthen existing ties with international partners and establish new connections to accelerate the establishment of the bioeconomy with a particular focus on forests.
Multilateral international partnerships would allow Russia to share its expertise and to gain more knowledge in order to create viable legislative climate, and to adopt new technologies and cultivate talents. Altogether this will inevitably add weight to the country in the global bioeconomic environment.
The potential of the Russian forest-based bioeconomy is enormous. The capacity for value generation is estimated in the hundreds of billions of dollars, if handled responsibly. The magnitude of the transition to decarbonized economy in EU and other world is impressive. And it also offers Russia an opportunity to unfold its huge potential, as well as to join frontier nations in their daring effort to safeguard the planet a safer and more sustainable future.
