Circular Choices is the largest coalition in Europe’s forest-based bioeconomy sector to date. Over the past two and a half years, it has successfully advocated for a more prominent role for the circular bioeconomy, which harbours one in five EU manufacturing companies, within the EU Institutions’ agenda.
The coalition’s efforts have culminated in the recent acknowledgment of the bioeconomy as one of the five strategic sectors for Europe’s industrial base in the recently proposed EU Clean Industrial Deal. The anticipated Bioeconomy Strategy is set to address the sector’s challenges later this year with specific support measures.
The Strategy, together with the new EU 2040 emissions target and the EU Circular Economy Act due in 2026, could harness the formidable power of the circular bioeconomy to help position the European Union as a global climate leader. A position the EU will showcase at the next meeting of the COP in Brazil, which is expected to put under the spotlight the connection between climate action and bioeconomy.
It is broadly agreed that reducing CO2 emissions should be the primary focus of climate policy. Through the substitution of fossil products by forest-based ones, 410 million tons of CO2 emissions are already avoided annually in Europe (Peter Holmgren, 2019). Scaling up this substitution effect is a major opportunity both for the EU and the climate. But the potential of wood-based products in climate mitigation is overlooked, as are the sector’s ‘negative emissions’ through bio-CCUS – Carbon Capture Utilisation and Storage. As demand for products embedding carbon increases, so will opportunities for the forest-based sector to drive innovation and growth.
In Europe, forests play a crucial role in carbon capture, with 292 million tons of CO2 absorbed annually (EEA, 2024 data EU27), notably thanks to sustainable forestry practices. In total, European forests are estimated to store around 9.8 billion tons of carbon (ForestEurope, 2020 data EU27+UK).
After being harvested, this carbon then remains stored in wood-based products, for example in construction, but also in other forest-derived products, such as clothing or packaging materials. While these products may not last decades, they can be recycled multiple times, and are already contributing to carbon storage equivalent to 320 million tons of CO2 annually (AFRY, 2024). This is why the recyclability of products and the renewability of materials used to make them should be acknowledged when considering their carbon footprint.
Presenters at the Circular Choices event emphasised the urgent need to further increase Europe’s biomanufacturing capacity. But investments in the forest-based manufacturing sector require predictability, which can be achieved through appropriate and consistent policy. The EU’s upcoming Bioeconomy Strategy presents an opportunity to support the production of bio-based products, as well as the demand for them.
For decades already EU CO2 emissions have decreased, while the economy has continued to grow. While further reducing emissions remains the priority, EU policy must now also acknowledge the role that forest-based value chains play in storing carbon . “Only one number matters,” panellists asserted, “how much carbon is stored in the overall value chain.” Within the sectors represented by the Circular Choices coalition all agree that the circular bioeconomy could enable a more competitive Europe, while at the same time helping the EU navigate through the global challenge of climate change.
Quotes
Diana Ürge-Vorstzat, Vice-Chair of the IPCC and Professor at the Department of Environmental Sciences and Policy at the Central European University (CEU)
“When land is designated for economic activities in forestry, it becomes one of the most sustainable land uses possible. Forest-based industries play a crucial role in restoring the environment, supporting biodiversity, and combating climate change.”
Marco Eikelenboom, CEO of Sappi Europe and Cepi Chairman
“We are part of the solution to the global issue of climate. This represents many opportunities for Europe if we want to embrace the power of our industry.”
Christian Holzleitner, Head of Unit for Land Economy and Carbon Removals at the European Commission Directorate General for Climate
“We must not only reduce emissions but also remove CO2 from the atmosphere. The bioeconomy offers a unique value chain by capturing carbon, storing it for centuries, and repurposing it as feedstock for sustainable materials. We need to create the right incentives for sustainable biomass use and integrating carbon removal certification to measure every step of the process.”
About the Circular Choices Coalition:
The Circular Choices Coalition comprises 14 EU trade associations supported by a further six trade associations that represent EU forest owners and managers. The Circular Choices members collectively represent experts in the EU forestry sector, the wood, fibre-based paper, and board products industry, and in renewable energy provision. The coalition represents 4 million direct employees, turns over €520 billion and sequesters, and helps store and substitute 806 Mt CO2 eq annually, equivalent to 20% of EU total fossil emissions. We offer circular and affordable solutions to deliver a net-zero economy by optimising the use of sustainable and renewable wood and wood fibre-based products and energy in a responsible and resource-efficient manner. Caring for the EU’s forests means caring for people’s needs. Sustainable forest management has been a success thanks to the commitment and efforts of forest owners and managers. Their decisions today will echo far into the future. Find out more here.
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