Bioeconomy
Scotland's bioeconomy includes the parts of the economy that use renewable biological resources from land, water, and air such as crops, forests, fish, animals, and micro-organisms and the conversion of these resources into products such as food, feed, materials, and energy for economic purposes.
Enabling Scotland’s Circular Bioeconomy – A natural part of the solution
In the 2024 Scottish Government study researching the importance of natural capital to the Scottish economy, it was estimated that nature-dependent sectors in Scotland (excluding non-renewable sectors such as oil and gas) generated approximately £40 billion in economic output, accounting for 14.4% of Scotland's total output, in 2019. The most dependent sectors include agriculture, fishing and aquaculture, forestry and wood products, water and sewage, spirits, wine, beer and malt, and electricity.
Since 2015, Zero Waste Scotland has played a key role in supporting the development of a circular bioeconomy by helping to identify and add value to bio-based waste and by-products by creating interest among producers and off-takers and facilitating connections and support leading to the development and delivery of more sustainable opportunities.
The circular bioeconomy integrates circular economy principles into the bioeconomy to ensure efficient use and management of bio-based renewable resources across the whole value chain. Ensuring that at each stage, from design to production to conversion to utilisation and consumption, materials are considered in as high a value as possible for as long as possible and that nutrients are recycled back into the biosphere at the end of life.
Circular Bioeconomy diagram
Enabling Scotland’s circular bioeconomy
If you're involved in the bioeconomy in Scotland, especially in leadership or strategic roles, this is a prime time to:
- Adopt the Circular Economy principles across all stages of the value chain from design and production to utilisation and valorisation to reduce waste arisings and add value to by-products.
- Engage with government, industry, academia and support agencies for knowledge sharing, funding, support and collaboration opportunities.
- Consider working in partnerships to enable the scale up of opportunities to enhance security of feedstocks and markets as well as enhance funding applications and confidence in new and innovative business models.
- Promote innovative opportunities to gain publicity, recognition and the confidence of funders, supporters and partners.
Economic, Social and Environmental Impact
Scotland’s bioeconomy sector plays an important role in supporting the country’s economy, society, and environment.
Economic
In the 2024 Scottish Government study researching the importance of natural capital to the Scottish economy, it was estimated that nature-dependent sectors in Scotland (excluding non-renewable sectors such as oil and gas) generated approximately £40 billion in economic output, accounting for 14.4% of Scotland's total output, in 2019. The most dependent sectors include agriculture, fishing and aquaculture, forestry and wood products, water and sewage, spirits, wine, beer and malt, and electricity.
Scotland is also investing in biotechnologies and generating tangible impacts. For example, the Industrial Biotechnology Innovation Centre (IBioIC), one of four innovation centres funded by the Scottish Funding Council, plays a key role in fostering Scotland's bioeconomy by connecting academic institutions with industry partners.
Social
The Importance of Natural Capital to the Scottish Economy study published by the Scottish Government in 2024 also estimated that nature-dependent sectors in Scotland such as agriculture, fishing and aquaculture or forestry and wood products (excluding non-renewable sectors) have supported around 261,000 jobs in 2019. Additionally, the Scottish Government allocated up to £100 million through the Green Jobs Fund in 2022 to address skills challenges and opportunities, supporting sectors including the bioeconomy.
Environment
Bioeconomy-based projects, such as peatland restoration, sustainable woodland management, Sustainable Agriculture Practices and the implementation of Bioenergy with Carbon Capture and Storage (BECCS) technologies, contribute to Scotland’s biodiversity preservation and Green House Gas (GHG) emissions reduction.
Supporting a circular bioeconomy in Scotland can further enhance its positive impact on society, the economy, and the environment while helping to address pressing challenges such as climate change and biodiversity loss.