3.3 Competitive operating environment

The bioeconomy’s operating environment is determined by the national, EU-level and international operating environment and the related legal and policy environments. Bioeconomy investments require a fairly long payback period, and actors must be able to rely on the predictability of the legal and policy environment. On the other hand, if the ways of using renewable raw materials change, for example, in a direction that produces more value added, there may be characteristics in the current operating environment that do not support this.  EU regulation is an important part of the Finnish bioeconomy’s regulatory environment. Areas such as financing, industrial policy, research and development policy and agricultural and environmental policy are subject to EU regulation. New bio-refinery investments and the development of existing plants are important so that high value added products can be brought to the market.

MEASURES

Examination of the characteristics and possible incentives of the sector related to the commercial use of ecosystem services and entrepreneurship

• Determine the characteristics of the sector related to the commercial use of ecosystem services and entrepreneurship (in the forest sector in particular in “other income from forests”) and what types of incentives (including taxation) would be useful for developing value added

Responsibility:  Ministry of Agriculture and Forestry, Ministry of Finance, Ministry of Economic Affairs and Employment

Actors: Research institutes

Continue the streamlining of permit processes for bioproduction plants by strengthening cooperation between authorities in order to attract investments

• Cooperation between authorities and applicants will be developed and established
• Utilise digital information in the application process

Responsibility: Ministry of the Environment, Ministry of Economic Affairs and Employment

Actors: ELY Centres, Regional State Administrative Agencies, centres of expertise in bioeconomy and circular economy

Promoting the use of public funding instruments for the different stages of the development of bioeconomy value chains

• Provide information in a manner better than at present to actors about the possibilities of using bioeconomy funding instruments and develop advisory services related to these
• Develop guarantee and financing instruments to more effectively support the growth of bioeconomy start-ups
• Increase business advisory services for SMEs and provide better communication on available funding opportunities;
• Ensure that public investments in the development of logistics solutions, data networks and transport infrastructure are sufficient to support new biorefinery investments and other bioeconomy business taking into account the changes that will take place in production and consumption.

Responsibility: Ministry of Economic Affairs and Employment, Ministry of Agriculture and Forestry, Ministry of the Environment, Ministry of Transport and Communications

Actors: ELY Centres, Business Finland, Finnvera, Tapio Oy, regions

Increasing the impact of sustainable funding and new performance-based funding models

• Examine the usability of a performance-based funding model utilising private investment capital to promote bioeconomy objectives
• Increase communication provision on sustainable finance ecosystems steering private investment capital towards solving key bioeconomy challenges and accelerating growth opportunities

Responsibility: Ministry of Economic Affairs and Employment, Ministry of Agriculture and Forestry, Ministry of the Environment

Actors: Finnish Climate Fund, Finnish Industry Investment, Centre of Expertise for Impact Investing

Encouraging cross-border cooperation

• Prepare a Memorandum of Understanding (MOU) with key partner countries based on the needs of companies and actors
• Strengthen bilateral cooperation with Sweden and other neighbouring countries in bioeconomy sectors, including research
• Support the participation of operators in the EU’s joint bioeconomy networks and projects;

Responsibility: Ministry of Economic Affairs and Employment, Ministry of Agriculture and Forestry

Actors: ELY Centres, regions, vocational institutions, higher education institutions, research institutes