Protein Diversification 2024

6. Early adoption of innovation Governments can drive society to become first movers in building a solid innovation ecosystem. They can encourage investment in holistic solutions that provide the right conditions for innovation to occur, while also tackling the challenges of improving production systems and increasing customer acceptance, highlighting the importance of building on the full value chain and gaining insights at every step of the way when adopting new food-tech solutions. 7. Leveraging and enabling private investments When combined with private-sector investment, public investment has stimulated new markets, jobs and solutions. Privately funded research is valuable, but not sufficient; while private funding typically emphasizes applied science and commercialization to yield swift returns for a small group of shareholders, public investments support long-term basic research, often resulting in unforeseen breakthroughs over extended time frames.14 Throughout history, from radar and information technology to clean energy and vaccines, the collaborative endeavours of public and private R&D have consistently demonstrated synergistic effects on scientific advancement, societal progress and economic growth. In addition, governments can actively de-risk15 new food-tech innovation, including in alternative proteins, for private investments. By making crucial resources and infrastructure accessible, governments provide the necessary foundation for businesses to thrive in this emerging sector. This involvement not only encourages greater private investments but also contributes to the sustainability and scalability of alternative protein ventures. 8. Fostering academia–industry collaborations Implementing science, technology and innovation policies becomes integral to a government’s overall strategy. Such policies contribute to a more inclusive, comprehensive and cohesive approach to R&D, ensuring that companies, consumers and the government can access the latest technologies at the lowest possible cost. This, in turn, accelerates the development and adoption of alternative protein technologies, positioning nations at the forefront of food systems transformation. Driven by the motivations above, governments around the world are beginning to pay heed. But if the world is to reach its global climate, biodiversity, food security and public health goals, much higher levels of investment are needed to accelerate protein transitions at the scale and pace required. According to the Good Food Institute’s 2022 State of Global Policy report,16 public support for the alternative protein ecosystem has likely surpassed $1 billion. Governments are increasing their financial, policy and regulatory support for alternative proteins but have yet to approach the annual support required to realize alternative proteins’ benefits to the economy, climate and global food systems. To unlock the full potential of alternative proteins, it is estimated that $10 billion per year is needed in global public spending17 on R&D and commercialization. As an investment, alternative proteins have already attracted billions in private funding (for cultivated, plant-based and fermentation-based meat). But this is not nearly enough. For cultivated meat specifically, less than $3 billion in capital has been invested, spread across just over 100 companies. That is not even the cost of one battery factory for electric vehicles and is a tiny fraction of the $1.7 trillion invested in clean energy in 2023.18 Currently, cultivated meat technologies are at a nascent stage of development but have the potential to scale and attract investment similar to other clean- tech investments. The investment needed to advance food tech is substantial, posing a challenge for many countries with limited financial resources. Recognizing the varying capacities of nations and the different roles each country can have in the alternative protein value chain, strategic partnerships become imperative to ensure shared investments, expertise and technological advances. Collaborative efforts can bridge financial gaps and support inclusive growth, promoting a global landscape in which all nations can actively participate in shaping a sustainable and resilient future through alternative proteins. Global forums such as the Food Innovation Hub19 could significantly address common anticipated challenges, such as ensuring consumer acceptance and creating a level playing field alongside the traditional meat industry. Governments need to consider investing in open-access research and creating private- sector incentives to realize the full economic and societal benefits of plant-based and cultivated meat and make these options accessible to all. Specifically, governments should consider funding science, creating scientific innovation centres and incentivizing private-sector R&D, manufacturing and infrastructure expansion focused on alternative meat production. Investment tax credits, loan guarantees and other forms of financial support, as well as demonstration projects, have stimulated explosive growth in the renewable energy and electric vehicle (EV) sectors and can stimulate similar progress for alternative protein infrastructure. Federally supported innovation, in the form of increased investment in alternative protein R&D, can have a multiplier effect, leading to a more resilient food supply, more choices for consumers, climate- forward and agricultural job creation, nature-positive protein production and a stronger global bioeconomy. Less than $3 billion in capital has been invested in cultivated meat – not even the cost of one battery factory for electric vehicles. Creating a Vibrant Food Innovation Ecosystem 8