The role of the policy mix in the transition toward a circular forest bioeconomy

Highlights

• Analysis of policy mix for transition toward a circular forest bioeconomy in Europe

• Fuzzy cognitive mapping approach for comparing systemic impacts of policy drivers

• Identification of entry-points for increasing effectiveness of policy mix

Abstract

Grand societal challenges call for a sustainability transition away from a fossil-based society toward a bioeconomy, in which energy and manufacturing production processes are based on sustainable biological resources. In this context, the forest bioeconomy can play a key role, as it links the entire forest value chain, from the management and use of natural resources to the delivery of products and services. The paper adds to the existing literature on policy mixes, seeking to identify effective policy mixes in support of the European circular forest bioeconomy. To this end, we employ a two-step methodology involving a fuzzy inference simulation, to assess the most suitable policy mixes to promote forest sector development. We considered different scenarios in order to identifying the most suitable policy mix. This analysis of alternatives revealed a number of interesting findings regarding the relative effectiveness of different policy mixes. Strengthening environmental policy resulted to be a precondition for an effective policy mix. According to stakeholder knowledge, the policy mix that performs best in pushing the bio-based forest to evolve in a circular and innovative trajectory, combines “climate mitigation policies” with “sustainable forest management policies,” “R&D policies” and “awareness raising policies.”

Introduction

In order to meet the objectives set out in the Paris Agreement and the United Nations 2030 Agenda for Sustainable Development, major changes in production and consumption patterns are needed. First, reduced reliance on fossil fuels (European Commission, 2016) must be achieved. In this context, the bioeconomy – that is, an economy in which energy and manufacturing production processes are based on sustainable biological resources – represents a great opportunity (see, Hansen and Bjørkhaug, 2017; Imbert, 2017). According to the European Union, the bioeconomy encompasses the production of renewable biological resources and their conversion into food, feed, bio-based products and bioenergy. It includes agriculture, forestry, fisheries, food, and pulp and paper production, as well as parts of chemical, biotechnological and energy industries (European Commission, 2012).

The renewed EU Bioeconomy Strategy (European Commission, 2018) strongly focuses on circularity, thereby complementing the Circular Economy Action Plan (European Commission, 2019). Indeed, circular economy principles must be efficiently integrated within the bioeconomy to secure its sustainability. Against this background, in this paper, we focus on the forestry sector within a broader transition toward a circular bioeconomy.

Currently, European forests are among the main suppliers of biomass in Europe, and their residuals represent one of the more sustainable feedstocks for bio-based products (see Ronzon et al., 2015; Siebert et al., 2018). The Fourth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC) highlights the importance of a sustainable forest management strategy for mitigating CO₂ emissions. Such a strategy should aim at maintaining or increasing forest carbon stocks while producing an annual sustained yield of timber fiber for energy, materials and goods (IPCC, 2007). In addition to being used in the production of traditional wood-based products, forest biomass is increasingly being used in the production of textiles, bioplastics, chemicals and intelligent packaging, and is also contributing to the construction sector (see Hetemäki et al., 2017; Hurmekoski et al., 2018). However, the large-scale production and market penetration of these innovative products remain major challenges to be addressed (Clark et al., 2012).

To this end, an effective policy framework to support innovation and investment in new technologies and production methods is indispensable. At present, while there are a wide range of forest-related policies, these are fragmented across sectors, dependent on national strategies and lacking a shared European vision (Ollikainen, 2014). In this context, the circular bioeconomy can provide an important guiding vision for the development of consistent and mutually reinforcing policies (see Wolfslehner et al., 2016). As stated by Hetemäki et al. (2017), the circular economy and bioeconomy reinforce each other through a wide variety of synergies that can be created throughout the entire value chain (including end-of-life). These synergies contribute achieving sustainability and well-being by better ecosystem services. Notably, as outlined by the authors, bio-based materials can easily adapt to circular designs (e.g. wood residuals can be used to produce bioenergy and materials). However, in the case of the forestry sector, synergies must be supported by an aligned policy framework, as weaknesses and shortcomings in this regard have been outlined (see Aggestam et al., 2017). Indeed, as already emphasized by the bioeconomy strategy (2012), the promotion of a bioeconomy is dependent on coordinated policy efforts across a wide spectrum of policy spheres. In the literature on sustainability transitions, this insight is captured by the increasing interest in policy mixes to promote transitions to more sustainable modes of production and consumption.

The remainder of the paper is organized as follows: Section 2 discusses the relevant literature; Section 3 introduces the context of analysis; Section 4 presents the methodology; Section 5 shows the empirical results; and Section 6 discusses the results and concludes the paper.