Forest-based bioeconomy and bio-based chemical production in the European Union: Policy issues, institutions, actors, and instruments in a changing forest policy subsystem

The chemical industry is one of the largest consumers of fossil raw materials in the European Union (EU). Phasing out the use of fossil carbon both for energetic and material use (decarbonization/defossilization) requires the introduction of alternative processes and systems of production and consumption. One strategy that brings forward the defossilization of the chemistry sector is the use of biomass (bio-based carbon) as a raw material to produce bio-based chemical products. Our analysis focuses on the intersection of the forest-based bioeconomy, bio-based chemical production, and consumer preferences. It points out how the sustainability transition of the chemical industry changes the forest-based bioeconomy policy subsystem in the EU. Drawing on the Political Process inherent Dynamics Approach (PIDA), we apply a mixed-methods research design that integrates three scientific perspectives in an interdisciplinary approach. We illustrate how shifts in forestry, the chemical industry, and consumer preferences change the forest-based bioeconomy policy subsystem. Numerous strategies and goals referring to international agreements have been introduced by the EU in recent years and new actors from the chemical industry are entering the policy subsystem. Yet, new instruments are needed and developed for the regulation of the carbon cycle and negative emissions. The study provides directions for research on the defossilization of the chemical industry through the use of forest biomass and points out potential conflicts and trade-offs in production, consumption, and regulation. • Calls for the use of forest biomass to defossilize the chemical industry have implications for forest policy • First study on changes in the forest-based bioeconomy policy subsystem due to transformation of the chemical industry • The entry of new actors from the chemical industrymay lead to policy conflicts with traditional forest policy actors • New processes for the production and consumption of bio-based chemicals are needed