A value chain approach to improve biomass policy formation

Biomass value chains for energy, fuels and bio-based products involve complex, cross sector interactions between their upstream and downstream stages. Overarching policymaking to date has included the use of biomass to deliver sector specific aims (e.g. climate change, energy, etc.) however, this is mostly planned without adjusting support across the most challenging stages of biomass value chains and exploiting specific advantages related to their geographic settings (e.g. domestic feedstocks, local markets, etc.). Policies to date have, therefore, resulted in fragmented, suboptimal biomass use and debates for sustainability and resource efficiency. This opinion paper arose from the project Strategic Initiative for Resource Efficient Biomass Policies Funded by the EU Commission. It discusses the development of a dedicated Biomass Policy Framework which applies the principles of value chain analysis in policy design to enable the market uptake of sustainable, domestic, resource efficient biomass solutions. Firstly, it explains how to provide context by identifying value chains which can offer competitive advantages for biomass mobilization, market infrastructures, rural and economic development within their geographic setting. Then the work builds on the context and prioritized value chains and further rationalizes policy needs and aims within individual value chain stages. This is done by identifying policy-related challenges and gaps that constrain sustainable and resource efficient deployment of the selected value chains. Also, it suggests policy interventions that will overcome challenges, resolve gaps and as a result mobilize local biomass and improve market uptake. Finally, it discusses the contrasting paradigms for biomass policy formation within single sector target setting and the value chain approach of the Biomass Policy Framework and uses the case of low carbon biomass heat to illustrate the strengths of the suggested approach. The paper concludes with remarks for the concept of biomass value chain analysis in policy.