Understanding the present challenges in the field2 Through thoughtful, targeted and strategic interventions, governments can effectively address the diversity of challenges faced by the alternative protein sector. 1. Cost competitiveness The alternative protein sector’s capital expenditures (CAPEX) pose a challenge for the continued research and development needed to optimize production processes. Given the deep- tech nature of alternative protein innovation, substantial investment is essential to expand production capabilities and meet the increasing demand.20 Scale-up efforts will require investment in long-operation infrastructure, necessitating institutional investors comfortable with long- term returns.21 Governments can contribute by providing financial support, grants or incentives to alleviate the financial burden on companies to scale up their operations. 2. Regulatory uncertainty The alternative protein sector operates within a dynamic and evolving technological landscape. Yet lessons from countries such as Israel, Singapore and the US indicate that existing regulatory frameworks can effectively accommodate the unique characteristics of these innovations. While proactive engagement from governments is essential in formulating clear regulations to ensure product safety and encourage innovation, there is also a need to learn from the experiences of other nations in this domain. 3. Collaboration with local industries Collaboration is crucial among food-tech start- ups, farmers, food industries and pharmaceuticals as these sectors often possess the requisite expertise in scaling up and large-scale production. Governments can facilitate strategic partnerships, providing a platform for knowledge exchange, technology transfer and collaborative initiatives that use existing know-how within these industries. By encouraging and supporting collaboration, governments contribute to accelerating alternative protein production capabilities, ultimately fortifying the sector’s position in the global market.22 Through adopting a comprehensive approach encompassing financial support, regulatory clarity and industry collaboration, governments can drive the sustainable growth of alternative proteins, positioning them as vital components of the future food landscape.Governments play a pivotal role in supporting and advancing deep-tech sectors such as alternative proteins. Through strategic public investments in research, infrastructure and regulatory frameworks, governments can lay the foundation for private-sector involvement and drive transformative change in the global food systems while benefiting from new economic opportunities. Adi Ben Tov, Associate Director of Policy, The Good Food Institute IsraelGovernments are well positioned to address the current challenges within the global alternative protein sector. Such support will help the entire industry grow and ensure successful integration into the mainstream food market. Creating a Vibrant Food Innovation Ecosystem 9

Protein Diversification 2024