BIC identifies policy tools needed to create lead markets for bio-based products

BIC's report on policy recommendations to create lead markets for bio-based products identifies four policy tools:

•  Binding content targets and quotas come out with the strongest overall rating, offering predictable demand signals and high investment leverage, though they take time to design and implement

• Fiscal measures such as reduced VAT can help narrow the "green premium" quickly but offer a weaker demand signal on their own

• EPR eco-modulation builds on existing, well-established infrastructure

• Green Public Procurement can leverage the EU's roughly 14% GDP share of public spending to demonstrate viability in sectors like construction

The report also sets out the enabling conditions common standards, sustainability criteria, dedicated bio-based NACE codes, credible verification methods, and certification schemes, which are needed to make any of these measures work in practice, alongside the financing and biomass availability conditions covered in BIC's earlier work.