As the world races to meet ambitious climate targets set forth in the Paris Agreement, biosolutions are emerging as a critical component in the global effort to reduce greenhouse gas emissions and drive sustainable growth. This is underlined in a report commisioned by the Alliance for Biosolutions, a coalition under the Danish Chamber of Commerce bringing together large companies, SME’s, startup, universities and organisations from across Danish sectors.

The report highlights the immense potential of biologically-based technologies and processes in achieving significant environmental and economic benefits, with Denmark well positioned to lead the way for the rest of the world.

The global potential of biosolutions

Biosolutions, which encompass a wide range of products and processes derived from living organisms, offer versatile applications across various sectors, including agriculture, industry, and transport. According to the report, biosolutions have the potential to reduce global CO2 emissions by approximately 4,300 million tons by 2030, equivalent to 8 percent of current global emissions.

“Biosolutions are composed of biological products that are anchored in biotech, i.e., they utilise living organisms, including enzymes, microorganisms, bacteria cultures, pheromones, etc. for concrete applications and products that are used in other industries’ manufacturing processes and as end products to enable sustainable transformations such as emission reductions.”

The report forecasts that the global market for biosolutions could grow from EUR 240 billion in 2020 to EUR 640 billion by 2030, driven by increasing demand for sustainable alternatives. Danish companies, with their strong international positions in alternative proteins, enzymes, and bioplastics, are well-placed to support this growth. The Danish biosolutions industry not only contributes significantly to the national economy—adding EUR 1.8 billion to GDP in 2020 and supporting approximately 6,800 jobs—but also generates nearly 80 percent of its revenue from exports, highlighting Denmark’s global leadership in this sector.

Benefits and challenges for the biosolution industry

Denmark’s biosolutions sector is anchored in a robust ecosystem of companies and research institutions that foster innovation and collaboration. This unique environment has enabled Danish companies to develop and scale groundbreaking solutions that are now being implemented globally. The report notes that if Danish companies can maintain their market share, global sales could exceed EUR 14 billion by 2030, potentially creating an additional 7,200 jobs in Denmark.

However, the report also emphasizes the need to address regulatory and market barriers that currently hinder the widespread deployment of biosolutions. Outdated product classifications, insufficient CO2 pricing, and long product approval processes are identified as key challenges that must be overcome to fully unlock the potential of these technologies.

The global market for biosolutions is set to expand rapidly in the coming years. By continuing to innovate and address regulatory challenges, both public and private companies investing in biosolution can not only contribute to the global effort to combat climate change but also secure a competitive advantage in the rapidly growing green economy.

The future of biosolutions is bright, and with investments, initiatives and innovative solution providers, these technologies are poised to play a crucial role in shaping a sustainable future for generations to come.