From Policy to Practice Actionable Recommendations for a Commercial Bioeconomy 2025

Mapping category 2 recommendations across core activities connecting technology to marketFIGURE 4 Category 2 Delivering a market-pull bioeconomy through government-instituted incentives 5 Incentivize early adopters through targeted tax credits 6 Direct incentives for consumers to adopt bioproducts 7 Government supported programmes for large corporations to beta test and scale bio-innnovationsPiloting and scale-upPre- commercializationCommercializationRoutes to market Research and developmentDiscovery and ideationEarly-stage funding and business care Scale productionCustomers and consumers Demand To address these challenges, a comprehensive incentivization strategy should be implemented, combining financial, regulatory, corporate and behavioural incentives. While financial incentives are not practical for all governments, a phased, future- focused approach to financing is recommended – one that gradually balances funding towards bio-innovation from extractive, legacy industries. For example, in 2023 alone, the world’s 60 largest lenders provided approximately $705 billion in financing for fossil fuels.30 The specific recommendations below draw on representative examples of government incentives that have successfully driven commercial adoption and strengthened market demand. Recommendation 5 Incentivize early adopters through targeted tax credits What if targeted tax credits drove the future-proofing of industries with bio-innovation, incentivizing early adopters to lead the way for long-term resilience? While government incentives to drive demand can take various forms, targeted tax credits are a successful strategy that encourage early adoption by offsetting costs and driving down cost premiums. Tax credits can deliver early cost savings for emerging technologies and provide a gateway to broader adoption across industries. Description Corporate tax incentives for early adopters can boost business demand for commercial bio-innovation and help usher in a market-pull era for the bioeconomy. Example China offers various tax incentives, including preferential rates and deductions, to encourage corporations, especially those in biotechnology and other high-tech sectors, to scale innovation and R&D.31Recommendation 5 From Policy to Practice: Actionable Recommendations for a Commercial Bioeconomy 16