In a rapidly changing world, the bioeconomy offers a transformative pathway for climate adaptation, nature-positive growth and fiscal resilience. Currently valued at an estimated US$4–5 trillion, the bioeconomy has the potential to expand to US$30 trillion by 2050 – if strategic action is taken now.
Unlocking this potential will require comprehensive policies, targeted investments and global collaboration to scale bioeconomy solutions that can withstand the growing pressures of extreme weather events and biodiversity loss.
This new report, released by NatureFinance and the Inter-American Development Bank, identifies key opportunities for governments, the private sector, development banks and other international financial institutions to scale up strategic investment in bioeconomy solutions—across ecosystems, livelihoods, and infrastructure—to drive a more resilient and inclusive global financial system.
The report also highlights how the 2025 NDC process offers a critical window to embed bioeconomy strategies into national climate plans, ensuring nature is integrated into the green economic transition.
Key Recommendations
Strategic recommendations to scale bioeconomy solutions in a manner that is equitable, quick and adaptive, ensuring their long-term success.
These include:
- Integrate the bioeconomy into green economic transitions. Fiscal incentives—such as tax breaks, concessional loans, and sustainability-linked bonds—can unlock private sector investment in bioeconomy initiatives. Brazil’s Priority Program for Bioeconomy (PPBio) and the Amazon Bioeconomy Fund are proven models attracting capital to the bioeconomy.
- Enhance natural resource management for resilience for high-risk sectors. Adopt a “nature as infrastructure” approach including supporting bioeconomy-dependent infrastructure, promoting urban biodiversity credits for climate adaptation, and integrating nature-based solutions into national climate strategies.
- Deploy innovative solution design processes to accelerate the adoption of bioeconomy solutions. Human-centred design is essential to developing adaptive and resilient bioeconomy solutions. Drawing on the lessons of other innovation ecosystems, especially the digital economy, design solutions around lived experiences for users to ensure rapid adoption and lasting impact.
- Pursue innovative finance solutions to link equitable and resilient bioeconomy development to climate outcomes. Using the “Four I’s” framework—Instruments, Indicators, Interest, and Investors—governments and DFIs can deploy financing tools like sustainability-linked debt, outcome-based bonds, and nature credits to drive equitable, climate-aligned investment.
- Future proof bioeconomy solutions for a world warming beyond 1.5°C. Bioeconomy solutions must not only be deployed at speed but also be designed with agility and adaptability to respond to increasing climate uncertainty. This includes using scenario planning and adaptive KPIs to make bioeconomy financing resilient to volatile climate and economic shifts.
