The Finnish Bioeconomy Strategy

1. A competitive operating environment for the bioeconomy,

2. New business from the bioeconomy,

3. A strong bioeconomy competence base,

4. Accessibility and sustainability of biomasses. Bioeconomy refers to an economy that relies on renewable natural resources to produce food, energy, products and services. The bioeconomy will reduce our dependence on fossil natural resources, prevent biodiversity loss and create new economic growth and jobs in line with the principles of sustainable development. The objective of the Bioeconomy Strategy is to push our bioeconomy output up to EUR 100 bil- lion by 2025 and to create 100,000 new jobs. The Bioeconomy Strategy was drafted in a project set up by the Ministry of Employment and the Economy. Participants in this project were the Prime Minister’s Office, the Ministry of Ag- Photos: riculture and Forestry, the Ministry of the Environment, the Ministry of Education and Culture, page 4 Shutterstock the Ministry of Social Affairs and Health, the Ministry of Finance, the administrative branches page 10 Aarno Torvinen/ YHA image bank under these Ministries, as well as VTT Technical Research Centre of Finland and the Finnish In- page 13 Pekka Rötkönen/VTT novation Fund Sitra. Stakeholders representing the bioeconomy also gave their inputs to strate- page 15 Puuinfo image bank gy preparation. They were consulted in five workshops, three regional bioeconomy forums and page 22 Pekka Väisänen/MMM sectoral consultations. All those interested in the topic were also invited to express their views in the Otakantaa.fi survey and the Biotalous.fi website. The strategy process was facilitated by Graphic design: Edita Publishing Ltd Gaia Consulting Oy. Printing house: Edita Prima Ltd, May 2014 3

1. INTRODUCTION Finland to the forefront of a sustainable bioeconomy Growth, declining natural resources, loss of biodiversity and climate change challenge us to de- velop a bioeconomy that is based on renewable natural resources. In 2030, the world will need 50% more food, 45% more energy and 30% more water than today1. The growing demand will result in a scarcity of natural resources and push their prices up. The availability of raw materials and the efficiency of their use will thus become a new com- petitive advantage. Increasing environmental awareness and more stringent legislation will also be drivers in the manufacture of products that have a less harmful impact on the environment. This global development lays the foundation for a change towards bioeconomy. The bioecono- my is not a new industry; it is a combination of several primary production and refining sectors and end product markets. Typical features of thoe bioeconomy include the use of renewable, bio-based natural resources, environmentally friendly clean technologies and efficient recycling of materials. It is justified to refer to the transition from a fossil economy to a bioeconomy as the new wave of economic development (Figure 1). GDP and well-being Fossil economy Natural economy 1900 2014 2030 Figure 1 Bioeconomy will be the next wave of economy Bioeconomy development is driven by changing consumer behaviour and a need to secure the preconditions for human well-being. As a result of the concern over the environment and scarcity of non-renewable raw materials, including metals and oil, the use of biomasses in the economy and across society will increase. Biomasses from the forests, fields and water systems will offer solutions for more diverse needs as the prices of non-renewable raw materials go up. Finland has plentiful forest resources. Their increment has for decades exceeded the volumes harvested, and they thus offer major growth opportunities for our bioeconomy. Ensuring the growth potential of our forests, due care for biodiversity in the forest environment, and a de- termined effort to strengthen the timber market, will be crucial for the utilisation ratio of our 4 1 YK (2012): Resilient People, Resilient Planet: A future worth choosing. 5 forests and lay the foundation for the growth of a sustainable bioeconomy. Finland also has In early 20th century Finland, the natural resource economy relied heavily not only on fields but also many other, up until now under-exploited biomass resources for which new uses and openings on forests. The first “industrial product” from the forest was wooden ships and tar needed to protect are now being discovered. them. The demand for forest biomass increased as a market for sawn goods evolved, and these goods became a new export product. The growing need for paper in the world market and the shortage of Over the decades, we have accumulated considerable expertise in refining biomasses, and a rags used to manufacture it resulted in technologies for making pulp and paper from wood. In addition strong industrial framework. By exploiting our biomass resources and expertise, Finland can to sawn goods, these have been among the most important products for the Finnish export industry. contribute sustainable solutions for global efforts to mitigate climate change and for the dwin- dling of natural resources. At the same time, we can generate new, sustainable economic The roots of sustainable forest management go back as far as the 17th century Sweden. In the growth and well-being for the Finnish people. This is why the Finnish Bioeconomy Strategy has first Forest Act applicable in Finland that was passed in 1886, the principle of sustainability was been defined as a growth strategy. expressed as follows: you shall not devastate the forest. The principles of ecological and social sustainability were added to economic sustainability in the Forest Act of 1996. We also relied on our forests in the time of war; as oil products were not available, a wood The bioeconomy is based on renewable natural resources gas burner was developed. After the Second World War, timber and timber products were also and new operating models used to pay a major part of the war reparations. Bioeconomy refers to an economy that relies on renewable natural resources to In food production, Finland was self-sufficient for a long time. Fields and animal manure used produce food, energy, products and services. The bioeconomy strives to reduce to be inseparable in farming, and manure was not considered as a waste product until the entry our dependence on fossil natural resources, to prevent biodiversity loss and to into the market of industrial fertilizers. The emerging global lack of nutrients and, in particular, create new economic growth and jobs in line with the principles of sustainable phosphorus has now reinstated manure as a valuable input. development. In the early days of the fossil economy after the Second World War, Finland underwent an era The most important renewable resources in Finland are the biomass, or organ- of rapid industrialisation, which resulted not only in fast economic growth and well-being but ic matter, in the forests, soil, fields, water bodies and the sea, and fresh water. also extensive environmental problems. Waste waters from the forest industry were spoiling Ecosystem services are the services offered by the environment, including binding the environment, until demands were made that the factories cease polluting. The consequent carbon dioxide and opportunities for recreation. Another key aspect of the bioec- development efforts were productive, and the new clean technology and closed circulation onomy is not wasting natural resources but using and recycling them efficiently. systems soon improved the state of the water bodies. By international comparison, the role of bioenergy in energy production has also been exceptionally strong in Finland for a long time. In addition to relatively late urbanisation in Finland, our summer house culture and public ac- cess rights have fostered in the Finnish people a close relationship with nature, its values and Finland’s road to bioeconomy2 its processes, i.e. the so-called ecosystem services. Their significance is widely acknowledged in Finnish society. All in all, the importance of bioeconomy and, in particular, forestry in Finland Finland is in an outstanding position to develop the bioeconomy, as it has always been neces- has been something quite unique. sary for Finnish people to live on the terms of the nature and to adapt the technologies used to its scarcity and ability to renew itself. Similarly to the natural resources economy and the fossil economy in their time, bioeconomy is now a global phenomenon driven by the challenges of the fossil economy discussed above The history of the bioeconomy in Finland begins from the era when the ice sheet started reced- and changes in consumer habits, markets, production processes and use of natural resources. ing some 10,000 years ago. The first settlers in Finland lived from hunting but, as their num- bers grew, there was less game and farming became an important source of livelihood. For an The way we use natural resources has changed and will continue to change in Finland as a result extensive period, the most important crop was rye grown in fields cleared by slashing and burn- of economic and social development, and new products based on renewable natural resources ing, which together with furs became an export product even before the era of tar trading. As have been developed as the demand for the old products declines. In addition, competition has farming became more prominent, people started building their dwellings from timber, which triggered a development that has taught us to use raw materials more efficiently. Biomass will be gave rise to expertise in log building. channelled into products that are in demand and that yield the highest added value also in the future. Technological advancement will enable increasingly versatile biomass uses. 6 2 Kuisma J.(1997). Tuli leivän antaa. Suomen ekohistoria. 7 Table 1. Bioeconomy output, value added, people employed and exports in 2011 How will our every-day lives have changed by 2030? Output Value added Employed Exports Irmeli, aged 48, is the mother of a family with two children. She and her family million eur million eur million eur have recently moved into a city where yet another district of timber houses has Food, total 16 093 4 356 128 400 515 been built. These buildings are five-storey zero energy houses. Nano material was Agriculture 4 822 1 658 90 100 0 used in their foundations, as the carbon dioxide emissions from traditional con- Food industry 11 271 2 698 38 300 515 crete were seen to be too high. The buildings are in part heated by solar collec- Bioeconomy products total 29 273 9 317 101 400 13 819 tors integrated in the wood-based panelling on the external walls. The residents Forestry 4 232 2 898 25 000 68 need not worry about wasting drinking water when showering, as a wash water Wood products industry 6 870 1 542 36 400 2077 recycling system is in operation in the area. Today Irmeli is wearing a dress made Pulp and paper industry 13 653 2 967 23 300 9185 from wood-based natural materials. For breakfast, the family has yoghurt thick- Construction 9 228 3 344 58 120 100 ened with nanocellulose. Irmeli drives to work in her car made from wood fibre Chemical industry 1 644 434 1 600 1 347 materials. On her way she fills up with fuel made from renewable raw materials, Pharmaceutical industry 1 339 845 4 100 932 including wood and wastes. As she is reading the paper on her coffee break, she Renewable energy 4 033 1 903 5 801 0 discovers that a drug for treating obesity has been developed from a plant. Water treatment and distribution 610 400 2 700 0 Bioeconomy services total 2 993 1 416 33 900 0 For the weekend the family heads out to eastern Finland, where there are nu- Nature tourism 2 737 1 226 32 000 0 merous tourism enterprises. The sector is flourishing, as several years previ- Hunting 85 79 100 0 ously the entrepreneurs managed to create a new business model exploiting Fishing 171 111 1 800 0 research-based health benefits of nature. Bioeconomy total 60 685 20 104 319 321 14 248 National economy total 375 777 163 424 2 509 500 54 221 Share of bioeconomy 16,1 % 12,3 % 12,7 % 26,3 % Economic significance of bioeconomy In addition to the fields included in these figures, the following sectors have activities relevant to the bioeconomy: technol- ogy industry, civil engineering, pharmaceutical industry, clothes industry, printing and design, and planning and expert ser- At more than 16%, the share of bioeconomy in the Finnish national economy is high. The out- vices. There are no significant exports, or the volume of exports is difficult to estimate, in the fields of renewable energy, put of the Finnish bioeconomy currently exceeds EUR 60 billion, and more than 300,000 people water treatment and distribution, and bioeconomy services. . are employed in the sector. These figures are high, even if they exclude the share of the tech- Source: Statistics Finland. The figures for construction, chemical industry and nature tourism are estimates of the share nology industry that can be classified as belonging to the bioeconomy. of bioeconomy based activities in these sectors. The objective of the Bioeconomy Strategy is to increase the output of our bioeconomy to EUR 100 billion by 2025 and to create 100,000 jobs. The bioeconomy also produces other benefits for the national economy and Finnish society: in addition to increasing our exports, replacing Strong EU support for bioeconomy fossil fuels with renewable domestic natural resources will improve Finland’s current account balance, reinforce our security of supply and increase our self-sufficiency in energy. The bioec- Bioeconomy is an important driver in the EU’s growth strategy. The UN and the OECD have also onomy also supports the goals of sustainable development, biodiversity conservation and bal- made note of the opportunities offered by the green economy in supporting sustainable develop- anced regional development. ment while also boosting the economy. The UN Environment Programme aims to promote human well-being and justice while reducing environmental risks and ecological scarcity. The OECD uses The significance of the forestry sector in Finland has been and will be great, as over one half the term green growth to refer to the strengthening of economic growth and development while of Finland’s bioeconomy today relies on our forests. Timber is more important for Finland than securing the sufficiency of natural resources and availability of ecosystem services. for any other country in Europe. In the bioeconomy, conventional boundaries between sectors are blurred, and new kind of cross-sectoral cooperation is being created. In the future, the bio- The EU adopted its bioeconomy strategy in 2012. It is linked to Horizon 2020, the EU Frame- economy based on sustainable exploitation of forests will result in symbiotic relationships be- work Programme for research 2014–2020. Funding for research, development and innovation tween the forest, energy, technology, chemical and construction industries. will improve European competitiveness and growth and create new jobs. The programme pro- 8 9 vides funding for food safety, sustainable agriculture and marine research, shipping and inland waters. Funding is also granted to safe, clean and efficient energy production, climate actions, resource efficiency and raw materials. The German bioeconomy strategy highlights striving for self-sufficiency in energy and raw ma- terials. Germany will also invest strongly in developing green technology. The strategy priorities include energy and material efficiency, environmentally friendly energy production and storage, sustainable water supply, sustainable transport, and waste processing and recycling. The Dutch bioeconomy strategy focuses on the chemical and energy sectors, with the main fo- cus on securing the availability of biomasses for these fields. Sweden aims to reach zero greenhouse gas emissions by 2050. Opportunities provided by green growth are high on the agenda, alongside with the climate-related targets. Among oth- er things, Sweden will strive to determine the value of ecosystem services and to analyse the problems that environmental and climate challenges may pose for society. The Norwegian government has drawn up a biotechnology strategy that emphasises stronger research efforts. The role of policy actions in promoting the bioeconomy Thus Finland is not the only country striving to promote the bioeconomy. The EU and many in- dustrial countries are already implementing policy actions aiming to strengthen their prerequi- sites for exploiting the opportunities offered by the bioeconomy. Rapid generation of new busi- ness and regeneration of the existing sectors will be vital for the evolution of the Finnish bio- economy in order that we can be the forerunners in grasping the growth opportunities offered by the bioeconomy. The expanding global market provides new opportunities for the exporta- tion of both bioeconomy products and expertise. Finland must become an attractive operating environment that will encourage Finnish and international companies to invest in the country. The policy actions must accelerate bioeconomy growth and remove obstacles to its evolution. Strong national determination and systematic action will be needed in order to achieve the Finnish bioeconomy targets. The Finnish Bioeconomy Strategy strives to develop Finland into a low-carbon, resource-effi- cient and smart society. Many other current strategic government policies and their implemen- tation measures aim for the same goal. As part of this entity, the Bioeconomy Strategy provides an overall picture and determines the strategic choices that are a precondition for achieving better economic growth and employment and increased well-being through the bioeconomy. The strategy reconciles the actions required to develop the bioeconomy. It strives to promote a new type of thinking and creation of cross-sectoral operating models in the scientific commu- nity, government and business life alike. 10 11

2. NEW BUSINESS FROM BIOECONOMY PRODUCTS AND SERVICES New bioeconomy business opportunities in Finland will be based on smart exploitation of bio- masses and water resources, the development of technologies associated with this, and high added value products and services. The role of services will have even more emphasis in the fu- ture, posing new challenges to competence. Key drivers for growth will be a favourable oper- ating environment for bioeconomy development and policy actions that promote bioeconomy growth. It is estimated that up till 2025, the Finnish bioeconomy could experience an annual growth rate of some 4%. This means that the bioeconomy output would increase from its cur- rent level of EUR 60 billion to EUR 100 billion. The cornerstones for developing the bioeconomy will be securing the competitiveness of the existing industries and providing them with a favourable setting in which to operate and grow. The new business opportunities arising alongside with these will rely on the smart exploita- tion of biomasses and high added value products and services. The greatest opportunities for growth will be found in new products and materials, in particular in forest, chemical and energy industries, and technologies and services that support them. and biomass pre-treatment methods, as well as adequate maintenance and improvement of Diversification through bio-based products the road network and other transport routes. The industrial exploitation of wood-based biomass will be significantly diversified. In addition to traditional forest products, wood will be used in innovative high added value timber products Pioneering bioenergy production and use and various new products made from wood ingredients. The new product areas will to a sig- nificant degree be based on forest industry, while the current boundaries between sectors will The use of wood-based transport fuel is increasing rapidly in Finland. The manufacture of bio- disappear, enabling the creation of new value networks. The forest industry will make a deter- oil based on pyrolysis has already been launched, and the refining of pine oil produced in the mined effort to develop completely new bio-based products, the share of which is estimated to pulp process into a second generation biodiesel is about to take off. There are also plans for increase to one half of our export earnings in this sector by 2030. Strong Finnish competence other plants producing wood-based liquid fuels. areas will also include biochemical methods, pulping technologies and enzyme production for the refining of biomass. Various combinations of process chemistry and bio and nano technolo- Finland is a pioneer in bioenergy production. Wood is our most important raw material in terms gies may give rise to completely new production technologies and biomaterials. of energy production. Its share is higher than that of oil, coal or natural gas when not only the direct use of wood for energy but also the energy created in the forest industry process is taken In a sustainable bioeconomy, wastes and industrial side streams will play an even more sig- into account. Most of our renewable energy stems from the side streams of wood-based indus- nificant role as raw materials. They will complement the raw material base of the bioecono- tries. In addition, the combined electricity and heat production in many cities relies on renewa- my and contribute to replacing natural biomasses, thus also reducing environmental loading. ble wood raw materials. In the future, energy fractions in the side streams from agriculture and Regional cooperation, interaction between industrial sectors and new services that support the food industry will also be more efficiently utilised in energy production. the exploitation of surplus materials will enable efficient use of materials close to where they are produced. Increased use of bio-based raw materials in the Significant new business in the mechanical engineering sector and equipment manufacture will chemical industry be generated from developing bioeconomy-related technologies. Strong expertise in wood bi- omass harvesting technologies, logistics and refining can be further developed by utilising ICT More than one out of three chemical industry companies operating in Finland are already us- solutions. Increased use of biomasses will call for the development of efficient logistic systems ing bio-based raw materials, and studies indicate a rapid increase in this figure. Similarly to 12 13 the forest industry, crucial factors for future growth include the availability of bio-based raw Cost-effectiveness and environmental benefits materials and a well-functioning market. Biomass and wastes will be used to produce high added value products, such as bio-based transport fuels. Combinations of process chemis- from efficient biomass utilisation try and bio and nano technologies may give rise to completely new production technologies In addition to forests, many other types of biomass could be more efficiently used in Finland. and biomaterials. The best use of side streams is being made in manufacturing industries, where efficient use of raw materials can be translated into cost-efficiency. On the other hand, many biomasses clas- The chemical industry will play a key role for many of the new bioeconomy value networks, as sified as wastes are often under-used. Smart biomass exploitation means that we reap the raw it manufactures intermediate products and chemicals for further use in many different areas. materials, nutrients and energy found in biomasses while reducing negative impacts on the en- The chemical industry has the required expertise and infrastructures, and it is already operat- vironment. ing in a similar market. The bioeconomy means environmental benefits as well. The planned exploitation of biomasses will reduce transport needs necessitated by the side streams, while nutrient recycling can con- Timber construction to account for a significant tribute to reducing the use of chemical fertilizers made from non-renewable minerals. share of urban construction The growth outlook for timber construction as part of ecological housing and other construc- tion is very positive in Finland and globally. It is also possible to turn our expertise in timber construction into a successful export product. The greatest prospects for timber construction are found in large-scale building: solutions for residential blocks of flats, office buildings, halls and various kinds of wooden structures as well as environmental constructions, also including construction related services. Increase in forest use on a sustainable basis More versatile exploitation of wood biomass will also increase the financial use of forests. The potential for sustainable economic exploitation of Finnish forests is very high indeed. The growth volume of stemwood is currently some 104 million cubic metres a year, and it is expect- ed to improve further. In addition to stemwood, biomass is obtained from the crowns, branches and roots. In 2008–2012 the Finnish forest industry used the average of 51 million cubic me- tres of domestic roundwood meeting the criteria for log and fibre wood per year, which is less than 70% of the maximum sustainable roundwood removals. This puts us in an ideal position to increase our use of forest resources for bioeconomy needs. The ecological and social sustain- ability of commercial forests is secured through forest policy actions. Increase in sustainable bioeconomy requires a sustainable and evolving raw material market for actors using wood. New investments relying on the use wood will not materialise without a well-functioning raw material market. In addition to securing felling opportunities and growth, protecting forest biodiversity and nat- Bioeconomy provides openings for cleantech ural values must also be part of exploiting the forests. In Finland forests have been conserved, nature management methods have been employed in commercial forests, and environmental Sustainable operating models and technologies of bioeconomy are part of clean technologies, and forest legislation and certification have been developed with the aim of finding a balance or cleantech, the global market for which is growing rapidly. Thanks to the high level of au- between the various ways of exploiting forests in line with the general principles of sustain- tomation and process expertise in Finland, considerable business and export potential can be ability. found in the utilisation of, for example, recycled materials and by-products. 14 15 Availability of clean water, chemicalisation of the environment and controlling greenhouse gas Biotechnology enables growth in the health emissions are challenges that, if we can find the right solutions, will create new global busi- ness opportunities. For example, there is a demand in the international market for technologi- sector cal solutions relevant to energy, material efficiency, waste and water processing, and nutrient The health sector is one of the most rapidly growing fields in the world. Finnish biotechnology recycling. Among others, Finland has unique technologies for burning low-grade fuel at a high expertise promotes the generation of new business from pharmaceutical research, health tech- efficiency, and extensive expertise in resource-efficient processes. nology, individualised health care solutions and health sector service innovations. In addition to expertise of a significant international standard, Finland’s outstanding registers, new biobanks Finland is known for our high-quality, world-class biotechnology competence. Our particular and extensive data resources offer expanding potential for exploitation. The bioeconomy en- strengths include industrial biotechnology and its applications. Industrial biotechnology applies courages cooperation between sectors and offers an excellent way of improving the citizens’ biotechnology to the manufacture of products such as chemical compounds, including antibi- well-being. otics, ethanol and citric acid, or proteins, including enzymes and antibodies. In the manufac- turing process, use is made of either various micro-organisms, including bacteria or moulds, or their parts, such as enzymes. Industrial biotechnology and various microbe factories are already Bioeconomy creates new service business in wide-spread use in the Finnish industries today, for example, in food, energy, enzyme, min- ing, pharmaceutical, forest and brewery industries. Services are considered to have a significant and growing role in the new bioeconomy value chains. Increasing service intensiveness, services associated with industrial products and imma- terial value creation are clear trends that will open up new business opportunities, in particular Bioeconomy boosts food industry turnover for SMEs, and encourage cooperation and partnerships between companies. New service busi- ness opportunities will be created in value chains related to bioproducts, for example, in ser- The bioeconomy will enable conventional food industry businesses to grow and expand their vices based on wood products and side streams. Tourism services also offer plenty of new op- exports. Our food industry companies derive almost one half of their turnover from the inter- portunities that have as yet not been exploited. national market. New business opportunities are constantly opening up in the food system. Natural values and the processes that maintain natural resources are vital for the bioeconomy. Completely new business may be generated if we can exploit the opportunities offered by These ecosystem services provide opportunities for many types of business. At the same time, closed systems, biorefineries, domestic animal production side streams and field biomasses. By the nature and nature experiences are an important source of well-being for us. Well-being ser- exploiting the side streams of the food industry we can produce new biorefinery products for vices that are based on natural values and that promote good health are a growing sector. The the chemical industry. Energy fractions from side streams can be used for energy production. income brought by both Finnish and international customers can be significantly increased by means of nature tourism and well-being services. Local food production that taps regional resources and strengths is an aspect of green growth that also responds to expanding consumer demand. Small industries and agriculture can New business can also be built on the ecosystem services in the construction sector and in wa- achieve higher rates of self-sufficiency if side streams are utilised for nutrient recycling and ter and landscape management. Energy recovery and exploiting water circulation, micro-cli- local bioenergy production. By utilising decentralised models adjusted to local conditions, re- mates and vegetation are part of sustainable construction and urban planning. source-smart local food production can also contribute to revitalising regions by boosting pro- duction and employment. Water resources support the bioeconomy Finnish people have expertise in developing functional foods. Natural products mean new busi- ness opportunities for the bioeconomy, and their productisation and exportation could be sig- Adequate supply of clean water is a global challenge that will be aggravated in the future. The nificantly increased thanks to the new consumer trends. needs related to water resource use will become even more prominent and require solutions that improve water efficiency and water recycling and that are suitable for communities and in- dustrial plants. The Finnish forest industry is a pioneer in developing and introducing processes with low water usage. Water ecosystems have a significant production potential. Aquaculture has thus rapidly rein- forced its position in the global food supply, and it is generally considered one of the most sustainable ways with the greatest potential of producing animal protein for the fast-growing 16 17 population. Great expectations are similarly placed on algaculture, for example, in terms of en- 3. THE VISION, OBJECTIVE, GOALS AND ergy production. All in all, water and fishery resources, aquaculture and the related products, technologies and opportunities to export expertise show considerable growth potential. MEASURES OF THE BIOECONOMY strategy Decentralised, resource-efficient bioeconomy VISION FOR 2025: solutions enhance the viability of regions SUSTAINABLE BIOECONOMY SOLUTIONS ARE THE FOUNDATION OF Decentralised and resource-efficient bioeconomy solutions can improve regional self-sufficien- WELL-BEING AND COMPETITIVENESS IN FINLAND cy in energy and nutrients as well as promote energy and material efficiency. In decentralised solutions, raw materials are often exploited close to where they were produced, making sure that the benefits resulting from the activities remain in the area. Nutrient use can be made The objective of the Finnish Bioeconomy Strategy is to generate new economic growth and more efficient by various closed cycle systems, thus reducing dependence on imported nutri- new jobs from an increase in the bioeconomy business and from high added value products ents while gaining environmental and climate benefits. and services while securing the operating conditions for the nature’s ecosystems. The leading idea of the strategy is that competitive and sustainable bioeconomy solutions for global prob- Regional self-sufficiency in energy can be improved by using the versatile raw material supply lems will be created in Finland, and that new business will be generated both in the Finnish and of the countryside as an energy source. In a decentralised bioeconomy, services related to the the international market, thus boosting the welfare of the whole of Finland. environment and natural resources create new business opportunities for rural areas, enhance the viability of regions and diversify their livelihood opportunities. A precondition for achieving Facilitated by the actions contained in the strategy, the bioeconomy output will grow to EUR cost-effective decentralised solutions include the creation of well-functioning markets, study 100 billion from its current level of EUR 60 billion, and 100,000 new jobs will have been cre- of the locations where raw materials are produced, processing the materials into a marketable ated in the bioeconomy by 2025. form and optimising the logistics and the locations where the materials are exploited. Competitive products and services, legislation and consumer behaviour guided by environmen- tal awareness will direct the evolution of the bioeconomy in the international markets. It is vital The role of cities, municipalities and regions in for the implementation of the Bioeconomy Strategy that existing and new policy actions will be introducing bioeconomy solutions targeted to support the growth of a sustainable bioeconomy. Cities, municipalities, regions and the central government play a key role in introducing new bioeconomy solutions. Local authorities and their large-scale investments as well as public pro- Strategic goals curement provide important development environments for the bioeconomy. They can be used for experimenting with, testing and developing sustainable bioeconomy solutions, for exam- The vision and quantitative targets of the Bioeconomy Strategy will be implemented by means ple, for construction, energy and water supply, transport and waste management. The impacts of four strategic goals: of nature on human well-being and health are increasingly being recognized as part of a good 1. A competitive operating environment for the bioeconomy: a competitive operating envi- living environment for the people. ronment will be created for bioeconomy growth

2. New business from the bioeconomy: new business will be generated in the bioeconomy by means of risk financing, bold experiments and the crossing of sectoral boundaries,

3. A strong bioeconomy competence base: the bioeconomy competence base will be up- graded by developing education, training and research,

4. Accessibility and sustainability of biomasses: availability of biomasses, well-functioning raw material markets and sustainability of the use of biomass will be secured. By measures related to these goals, the government wishes to ensure that Finland provides out- standing conditions for bioeconomy enterprise and investments and that the targets set for bi- oeconomy growth and sustainable development in this strategy can be achieved. An effort will be made to achieve an anticipatory understanding of the development and functioning of the 18 19 markets and the operating environment in order that the government, the scientific community 1.1 Anticipating the global demand for bioeconomy solutions and preparing and policy actions can address them in their activities and appropriately support bioeconomy roadmaps development. The matters concerning state funding are discussed and decided in the govern- Demand for bioeconomy products and services in the global market will be directed by com- ment spending limit and budget processes. petitive pricing, as well as by legislation and ethical consumer behaviour. The aim is at an an- ticipatory understanding of the development and functioning of the markets and the operating The following figure (Figure 2) describes the vision and strategic goals of the Bioeconomy Strategy: environment, which will enable us to identify those bioeconomy areas in which Finland can be a pioneer. In order to anticipate bioeconomy business opportunities, we need a system for (1) Figure 2 Vision and strategic goals of the Bioeconomy Strategy monitoring changes in the drivers and obstacles that are important for the marketing of bioec- onomy products and services, (2) assessing the opportunities of Finnish export industries, and (3) drawing conclusions on the required actions and roadmaps. The development measures to be prepared in the various sectors of the operating environment of the bioeconomy will be Bioeconomy Strategy in Finland linked to the strategy.

1. COMPETITIVE OPERATING ENVIRONMENT FOR BIOECONOMY Implementation and monitoring A competitive operating environment will be created for Measures: bioeconomy growth • Creating a bioeconomy foresight and scenario system and an international network that Sustainable supports it to identify global trends and sustainability challenges as well as Finland’s op-

2. NEW BUSINESS FROM BIOECONOMY Strategic goals bioeconomy portunities for generating business from solving these challenges. New business will be generated in bioeconomy by means of risk solutions are the financing, bold experiments and crossing of sectoral boundaries foundation of • Implementing the health sector growth strategy and food export programme as elemental

3. A STRONG BIOECONOMY COMPETENCE BASE well-being and parts of the implementation of the Bioeconomy Strategy. competitiveness The bioeconomy competence base will be upgraded by in Finland developing education, training and research Responsibility: Prime Minister’s Office, Ministry of Employment and the Economy, Team Finland

4. ACCESSIBILITY AND SUSTAINABILITY OF BIOMASSES Other actors: Ministry of Education and Culture, Ministry of Agriculture and Forestry, Ministry Availability of biomasses, well-functioning raw material mar- of the Environment, Ministry of Social Affairs and Health, Ministry for Foreign Affairs, Tekes, kets and sustainability of the use of biomass will be secured VTT Technical Research Centre of Finland, Sitra, Natural Resources Institute Finland, the Finn- ish Environment Institute 1.2 Developing steering methods to support new bioeconomy solutions Legislation and other steering instruments can be used to support the generation of new bio- economy solutions and to ensure that the use of raw materials needed in the bioeconomy is on Actions a sustainable foundation. The aim is at a business and investment environment favourable for the bioeconomy, promoting a high added value bioeconomy and ensuring the sustainability of the bioeconomy. From this initial position, we must ensure that no unnecessary administrative

1. A COMPETITIVE OPERATING ENVIRONMENT FOR THE BIOECONOMY: burdens or regulation is imposed on the industry exploiting biomasses compared to our com- A COMPETITIVE OPERATING ENVIRONMENT IS CREATED FOR THE petitors. Creation of new business is promoted through smooth and flexible permit procedures. BIOECONOMY A national bioeconomy panel will be set up to coordinate cooperation between various actors. Measures: Global markets are opening up for solutions necessitated by the dwindling natural resources. • Mapping the steering instruments for the bioeconomy in the administrative branches of The challenge faced by Finland is to be able to exploit our unique competitive advantage by the Ministry of Agriculture and Forestry, the Ministry of Employment and the Economy providing a competitive operating environment for bioeconomy actors. In addition to a favour- and the Ministry of the Environment and assessing the impacts of these on the operating able investment environment, this means an ability to exercise foresight in mapping new busi- conditions of the bioeconomy. ness opportunities emerging in the market while trying to understand better the types of top • Launching a drafting process with stakeholder involvement to develop regulation. expertise Finland should focus on to grasp these opportunities. We should boldly guide the demand towards new bioeconomy solutions. All this will require new kinds of shared national Responsibility: Ministry of Agriculture and Forestry, Ministry of the Environment, Ministry of operating models. Employment and the Economy 20 21 1.3 Providing incentives for the replacement of non-renewable natural resources by renewable ones in public procurement Public sector procurement is of a high significance in the national economy. When new solu- tions are being launched on the market, the volume of demand that procurement represent may be crucial for obtaining references. Measures: • Developing the criteria for sustainable public procurement so that the competitiveness of bio-based products in awarding public contracts can be improved. • Updating government resolutions on public contracts to also cover bioeconomy procure- ments by 2016. • Encouraging municipalities to introduce sustainable procurement as part of their business and industry strategies and to include strategic development of procurement in Structural Fund and other programmes. Responsibility: Ministry of Employment and the Economy, Ministry of Finance, Ministry of the Environment Other actors: Ministry of Agriculture and Forestry, Hansel, Tekes, Association of Finnish Local and Regional Authorities, Motiva 1.4 Promoting demand for bioeconomy products and services A precondition for bioeconomy development is that the structures of society enable sustain- able choices and customers are aware of the alternatives offered by the bioeconomy. Housing, transport, food and various well-being services provide great opportunities for the bioeconomy. In order for these opportunities to materialise, bioeconomy actors must be able to communi- cate clearly and reliably about the sustainability of their activities and products. Good examples and practices must be brought up and introduced to broader use in society. Measures: • Influencing consumer choices by highlighting the sustainability of bioeconomy products. • By means of active communication, emphasising the material and immaterial consumption alternatives offered by the bioeconomy and supporting the replication of good practices. Responsibility: Ministry of the Environment, Ministry of Agriculture and Forestry, Ministry of Employment and the Economy Other actors: Finpro 1.5 Promoting the standardisation and certification of bioeconomy solutions The EU has prioritised the bioeconomy as a key target for standardisation in the next few years. Fin- land should be proactive and take part in specifying the contents of the new standards, as standard- isation will create the framework for the new markets for bioeconomy products and technologies. Measures: • Making international efforts for bioeconomy standardisation a priority area of our national work on standardisation by means of resource allocation and intensified cooperation. 22 23 • Developing policy actions, e.g. certification systems, that improve the market position of Responsibility: Team Finland, Ministry of Employment and the Economy bioeconomy based products. Other actors: Ministry for Foreign Affairs, Prime Minister’s Office, Ministry of the Environment, Ministry of Agriculture and Forestry Responsibility: Ministry of Employment and the Economy, Ministry of the Environment 1.6 Smart green urban regions as development environments for bioeconomy solutions

2. GENERATING NEW BUSINESS FROM THE BIOECONOMY: In the future, 70% of the global population will live in cities. Efficient use of water, materials, en- ergy and space will be a necessity in areas with high population densities. The bioeconomy pro- NEW BUSINESS WILL BE GENERATED FROM THE BIOECONOMY BY vides sustainable solutions for energy and water supply, transport and waste management in cit- MEANS OF RISK FINANCING, BOLD EXPERIMENTS, A STRONG DOMESTIC ies. The bioeconomy will be developed through city innovations, linkages between them and by MARKET AND THE CROSSING OF SECTORAL BOUNDARIES disseminating them. Interaction between cities and the surrounding countryside will be stepped up in order to derive more benefits from the bioeconomy, including local food and renewable energy production. The growth of the bioeconomy market is only beginning. As Finland has engaged in long-term efforts to develop our bioeconomy expertise, we are in a particularly good position to grasp the Measures: new opportunity. New business will renew the existing industries located in Finland and can • Supporting long-term development environments structured upon the large investments also spark completely new enterprising. A prerequisite for this, however, is that the domestic of urban regions, in which we can experiment with, test and develop resource-effective bioeconomy market is made as attractive as possible for developing new business. This will re- solutions of the new generation of renewable energy and water supply and waste man- quire new funding solutions for innovations and growth companies as well as efforts to direct agement as well as models for ecologically sustainable transport. demand towards new bioeconomy solutions. • Together with urban regions, creating open marketplaces based on public sector inno- vation and procurement needs where new applications can be developed together with Over the next 10-year period an estimated 2.1 billion euros of public funding will be needed companies and organisations and their dissemination and commercial introduction can be to reach the growth objectives for the bioeconomy, to be distributed between risk funding to speeded up. Harnessing existing cooperation models to these experiments (SHOK Centres, companies (1.0 billion), research and innovation funding (0.5 billion) and inputs in piloting and INKA programme projects, subregional pilot projects, research cooperation models, land demonstration projects (0.6 billion). use planning). Developing regional operating models for more efficient utilisation of side streams and urban waste. 2.1 Increasing equity financing and innovation inputs in the bioeconomy Equity financing and investments in innovation will be required to ensure bioeconomy development Responsibility: Ministry of Employment and the Economy, Ministry of the Environment, Minis- and attract investments. By developing equity financing for bioeconomy companies we can create try of Agriculture and Forestry prerequisites for the establishment and fast growth of new business and growth companies. An effort Other actors: Sitra, Finnish Environment Institute, SHOK Centres, cities, Regional Councils will be made to create opportunities for the Finnish export industries to launch new products rapidly and as pioneers, thus maximising the business profits. The challenge lies in generating innovative fast- 1.7 Incorporating the bioeconomy in Finland’s country image growing business and companies in the bioeconomy that aim for a pioneering role in new markets. The great challenges faced by the globe, including population growth, climate change, lack of clean water, depletion of natural resources, and deterioration of the state of the environment, will require Measures: solution models that are consistent with sustainable development in areas where Finland has strong • Ensuring the availability of risk financing for bioeconomy growth companies as part of expertise. We can brighten Finland’s image by offering resource and energy efficient products and government funding solutions aiming to increase growth enterprising. services of a high ethical standard to the global market and thus attract direct international invest- • Prioritising the bioeconomy through cooperation between public finance providers for re- ments to Finland. There is also a demand for bioeconomy solutions in development cooperation. search and innovation and allocating public research and innovation funding to the bioec- onomy within the limits allowed by the state economy. Measures: • Finland’s reputation as a pioneer of bioeconomy development, expertise, enterprise and Responsibility: Ministry of Employment and the Economy sustainable use of natural resources will be enhanced by integrating the bioeconomy in the Team Finland strategy. 2.2 Funding piloting and demonstrations projects of new bioeconomy solutions • The Team Finland network will be used to actively inform international actors of the op- In many respects the bioeconomy market is new and in a growth phase. References will be portunities of investing in Finland’s bioeconomy. needed to trigger demand: new bioeconomy solutions must be experimented with, piloted and 24 25 demonstrated in order to commercialise innovations, ensure the functioning of the solutions added value. A higher value for customers can be produced by investing in various immaterial and reap concrete benefits. A precondition for this will be adequate and flexible funding, even value creation factors, including brand management, intellectual property rights and design, for bold experiments. Other actions to support the market access of new bioeconomy solutions while also achieving competitive advantages that are difficult to imitate. For example, the re- will also be needed, including the development of testing, certification and standardisation. cently launched National Design Programme makes valid points about how the desirability and usability of products and services can be improved by design competence. Measures: • Implementing bioeconomy pilot and demonstration projects in cooperation between fi- The nature, and culture and art drawing on it, also produce well-being and reinforce images nance providers (financial instruments of the EU programming period 2014–2020, domes- that may increase the demand for bioeconomy services. The significance of immaterial values tic public and private R&D&I funding). of the bioeconomy is often recognized locally and regionally as a source of business, culture • Adjusting the operating models of finance providers for research and innovation to enable and well-being. This trend must be supported systematically across society. We must more con- experimentation. sciously utilise natural values to create a good living environment and to promote health, well- • Harnessing the competence of government sectoral research institutes and testing envi- being and ecologically sustainable business. ronments to the planning and implementation of pilot and demonstration projects. Measures: Responsibility: Ministry of Employment and the Economy, Ministry of Agriculture and Forestry • Paying cross-cutting attention on the opportunities of immaterial value creation in bioec- Other actors: Tekes, Natural Resources Institute of Finland, Finnish Environment Institute, VTT onomy policy actions. Technical Research Centre of Finland, Academy of Finland, Universities • Launching user-oriented experiments and developing operating models for promoting im- material value creation and ecologically sustainable business. 2.3 Developing bioeconomy cooperation platforms across sectoral boundaries • Mapping the opportunities for nature tourism and other service activities relying on natu- Bioeconomy cooperation platforms (SHOK Centres, INKA programme actors, research cooperation ral values, developing new forms of services for the international market, and arousing models) must be geared to cross-sectoral activities that create innovative solutions and improve com- the interest of foreign customers in bioeconomy services. petitiveness to give momentum to business that is successful in the international market. Cities and • Securing the preservation of immaterial natural values. subregions must be harnessed to this cooperation, and strong links must be forged with internation- al networks. Promotion of bioeconomy growth must also have a role in land use and urban planning. Responsibility: Ministry of Employment and the Economy, Ministry of the Environment, Ministry of Agriculture and Forestry, Ministry of Education and Culture Measures: Other actors: Tekes, Natural Resources Institute Finland, Finnish Environment Institute, VTT • Gearing cooperation platforms (SHOK, INKA) to cross-sectoral activities and international Technical Research Centre of Finland cooperation by targeting the funding. • Proposing the launch of a bioeconomy action plan to Tekes and the Academy of Finland to bring together actors in various sectors. • Improving interaction between regions through Structural Funds programmes and allocat- ing Structural Fund financing to support the cooperation platforms (SHOK, INKA). 3. CREATING A STRONG BIOECONOMY COMPETENCE BASE: • Creating a setting for bioeconomy development by ensuring that sustainable use of natu- DEVELOPING THE BIOECONOMY COMPETENCE BASE BY UPGRADING ral resources, natural values and economic activity are reconciled in land use planning and EDUCATION, TRAINING AND RESEARCH by launching general planning development projects that support this. • Establishing a national bioeconomy panel to step up interaction between the government, the scientific community and enterprises and industry. Bioeconomy innovations and new business require world-class expertise, research and product development. New solutions will be created on the interface between competence and actors Responsibility: Tekes, Academy of Finland, Ministry of Employment and the Economy, Minis- and in a new type of cooperation. Competence and research must cover the entire value chain, try of Agriculture and Forestry, Ministry of the Environment, Ministry of Education and Culture and they must be channelled to creating added value. 2.4 Promoting immaterial value creation to increase the added value of products and 3.1 Developing education content to train bioeconomy experts services Producing sustainable bioeconomy solutions for global problems requires multidisciplinary Our bio-based products have traditionally relied on our plentiful biomass resources and had competence and combination of expertise. There is little general awareness of the opportuni- a low added value. The future challenge to the Finnish business sector will be increasing the ties offered by the bioeconomy, however, and we must thus increase public awareness of them 26 27 to motivate the working life, scientists, teachers and students. The current educational offer can be exploited to educate bioeconomy experts by incorporating renewable natural resources 4. ACCESSIBILITY AND SUSTAINABILITY OF BIOMASSES: in the existing programmes. As the bioeconomy aims for new business and jobs, the relevant SECURING THE AVAILABILITY OF RENEWABLE NATURAL RESOURCES, education should also contain business studies and encouragement to enterprising. WELL-FUNCTIONING RAW MATERIAL MARKETS AND SUSTAINABILITY OF RAW MATERIAL USE Measures: • Increasing awareness of the bioeconomy among young people. • Offering further education, updating of qualifications and re-training based on the need The transition from a fossil economy to a bioeconomy will mean much more extensive exploita- identified by employers. Supporting re-training of life science experts to reinforce their in- tion of renewable natural resources. The reliable supply of biomasses at a competitive price will novation, product development and business skills. be a crucial condition for companies and investments, and thus for a successful bioeconomy. • Deepening cooperation between universities and research institutes in a multi-annual de- While we make sure that the biomasses produced by the forests, fields and waters are available velopment process (Government Decision of 5 September 2013); paying attention to op- for diverse exploitation in the bioeconomy, we must also guarantee the sustainability of using portunities for business development in bioeconomy besides the research, development these natural resources and appropriate operating conditions for ecosystem services. Better in- and innovation activities. formation about biomass availability and trends can be produced by developing planning sys- tems and statistical services. Responsibility: Ministry of Education and Culture, business life Other actors: Universities, vocational institutes, Ministry of Employment and the Economy, Na- 4.1 Ensuring the possibilities of using biomasses and their availability for the needs tional Board of Education of a growing bioeconomy The natural resources of the Finnish forests and waters and the opportunities for their sustain- 3.2 Creating preconditions for bioeconomy through research able use are exceptionally great on the EU and international scale. As the growth potential for Competitive bioeconomy requires the creation of centres of expertise of an international stand- the Finnish bioeconomy to a great extent depend on exploiting our biomass resources, we must ard and reform of the priorities and operating models of research. The bioeconomy is a multi- ensure that EU legislation or other international decisions will promote rather than obstruct the disciplinary entity where competitive solutions cannot be produced without consolidating sev- use of biomass. As the biomass resources are mainly in private ownership in Finland, in terms of eral sectors and types of competence. New knowledge and expertise are continuously being biomass availability we must encourage the financial exploitation of biomasses as well as their created in the world. Finland must make sure of its ability to utilise and apply this knowledge imports. By means of jointly adopted rules, we must be able to show that the exploitation of fast and efficiently in creating bioeconomy solutions. biomass in Finland rests on a sustainable basis. Measures: Measures: • Making an effort to incorporate the bioeconomy theme to the process where decisions • Finland influences the key decisions and legislation on natural resources use in the EU and are made on the themes and priorities of the Strategic Research Council to be set up in internationally to ensure that we have the opportunity to exploit our biomass resources in connection with the Academy of Finland. a versatile manner for the needs of a growing and sustainable bioeconomy. The ministries • Intensifying research cooperation that crosses sectoral boundaries and accelerating the ex- will create an operating model that will ensure joint and anticipatory influence on EU and ploitation of research results by means of a reformed SHOK concept. international decision-making processes. • Improving our ability to exploit international research in Finland by influencing the con- • Improving the availability of biomasses and the operating conditions of the production tents of the EU Framework Programme for Research and Innovation, by encouraging Finn- chain by developing the land ownership structure, production methods and land use plan- ish actors to take part in international research networks and by promoting the interna- ning and by enhancing logistics and the infrastructure. tional mobility of scientists and students. • Developing business activities and entrepreneurship based on versatile exploitation of nat- ural resources. Responsibility: Ministry of Employment and the Economy, Ministry of Education and Culture, • Evaluating the sustainability of biomass use by generally accepted methods (e.g. the Eu- Ministry of Agriculture and Forestry, Ministry of the Environment, Prime Minister’s Office ropean RES Directive, Timber Regulation, Pan-European criteria and indicators for sustain- Other actors: Tekes, Academy of Finland, SHOK Centres, Natural Resources Institute Finland, able forest management and domestic certification systems), which will be updated and Finnish Environment Institute, VTT Technical Research Centre of Finland complemented as necessary. Finland will play an active part in the development of new methods. 28 29 Responsibility: Ministry of Employment and the Economy, Ministry of Agriculture and Forestry, Table 2. Key figures, indicators and data sources for the implementation of the Bioeconomy Strategy. Ministry of the Environment, Prime Minister’s Office Other actors: Natural Resources Institute Finland, Finnish Environment Institute, VTT Technical Key figure to be measured Indicators Data source Research Centre of Finland Growth of bioeconomy and its sig- Bioeconomy output/value added/ Statistics Finland nificance in the national economy the number employed and their 4.2 Making more efficient use of knowledge related to biomass resources share in the national economy Finland has an excellent knowledge base on biomass resources and their availability - forest re- Added value produced for natural Raw material input/value added to Finnish Environment Institute, Thule Insti- sources, field biomasses, fisheries, and to a certain extent also various wastes and side streams. resource use raw material streams tute, Statistics Finland This information is fragmented, however, and the opportunities of e.g. localised information Environmental benefits from the Raw material inputs used/green- Finnish Environment Institute Centre, have not been fully exploited. Up-to-date information to which various actors have easy access bioeconomy house gas emissions avoided Thule Institute, Statistics Finland will create preconditions for providing new bioeconomy services, securing the sustainable use Sustainability of the bioeconomy Total use of natural resources/ Statistics Finland, Luonnontila.fi of biomasses and safeguarding ecosystem services. growth and harvested volumes of standing timber, cereal crops, fish Measures: bag, endangered species, urban • Launching the collection of information on biomass resources and ecosystem services as waste part of a national system for natural resource accounting. Sustainability of the bioeconomy Indicators to be developed for Statistics Finland • Improving information collected by means of public funding on biomass reserves and ecosystem services, environmental waste streams. Collecting information in up-to-date geographical information systems and resource efficiency as well as and facilitating their availability and use. wealth and environmental assets • Developing the statistics system on the bioeconomy. Responsibility: Ministry of Agriculture and Forestry, Ministry of the Environment, Ministry of Fi- nance Other actors: Natural Resources Institute Finland, Finnish Environment Institute, Statistics Fin- land, VTT Technical Research Centre of Finland

4. IMPLEMENTATION AND MONITORING The Finnish Bioeconomy Strategy will be implemented in cooperation between several minis- tries. The efforts will be coordinated by the Ministry of Employment and the Economy. Other parties responsible for strategy implementation will be the Ministry of Agriculture and Forest- ry, the Ministry of Education and Culture, the Prime Minister’s Office, the Ministry of Finance and the Ministry of the Environment. The organisations in the administrative branches of these ministries will be extensively involved in the implementation. A detailed plan with timetables for the measures will be prepared in the context of organising the strategy’s implementation. Most of the measures should get started by the end of 2014. Strategy implementation will be supported by a bioeconomy panel to be set up. The panel will consist of actors in the bioec- onomy sector, and it will engage in dialogue with other programmes aiming for a low-carbon and resource-efficient society. Strategy implementation will be monitored using the indicators provided by public sources (Ta- ble 2). 30 The objective of the Finnish Bioeconomy Strategy is to generate new economic growth and new jobs from an increase in the bioeconomy business and from high added value products and services while securing the operating conditions for the nature’s ecosystems. The leading idea of the strategy is that competitive and sustainable bioeconomy solutions for global problems will be created in Finland, and that new business will be generated both in the Finnish and international market, thus boosting the welfare of the whole of Finland. The Bioeconomy Strategy was drafted in a project set up by the Ministry of Employment and the Economy. Participants in this project were the Prime Minister’s Office, the Ministry of Agriculture and Forestry, the Ministry of the Environment, the Ministry of Education and Culture, the Ministry of Social Affairs and Health, the Ministry of Finance, the administrative branches under these Ministries, as well as VTT Technical Research Centre of Finland and the Finnish Innovation Fund Sitra. Stakeholders representing the bioeconomy also gave their inputs to strategy preparation. They were consulted in five workshops, three regional bioeconomy forums and sectoral consultations. www.biotalous.fi