Fostering a Sustainable Bioeconomy: The Role of International Cooperation on Trade

This briefing note by the Forum on Trade, Environment, & the SDGs (TESS) examines the intersection of international trade and the sustainable bioeconomy. It provides a typology of trade-related policy instruments—including price-based measures, economic incentives, and regulatory requirements—that governments can use to promote nature-positive economic growth. The document emphasizes the need for international cooperation, particularly through the G20, to align these policies, avoid trade frictions, and support low- and middle-income countries in their transition to a sustainable bioeconomy.

• The global bioeconomy is viewed as a critical element for transitioning to a low-carbon, nature-positive economy, with a current estimated value of $4–5 trillion and the potential to grow to $30 trillion by 2050.
• Biodiversity-based trade is a significant component of global commerce, representing 17.2% of total trade ($3.68 trillion) and 7% of global GDP in 2023. The United States, China, and Germany were the top three exporters of these products in 2023.
• Governments can utilize price and market-based measures to foster a sustainable bioeconomy, such as internal taxes on non-compliant goods, border carbon adjustments to prevent carbon leakage, or providing preferential market access (e.g., reduced tariffs) for certified sustainable products.
• Removing environmentally harmful subsidies is a key economic lever; for instance, eliminating fossil fuel subsidies could reduce greenhouse gas emissions by up to 10% by 2030. Similarly, repurposing agricultural subsidies toward green innovations could reduce agricultural emissions by over 40% and yield a net benefit of over $2 trillion over 20 years.
• Regulatory measures include mandatory requirements like the European Union Deforestation Regulation and South Korea’s Act on the Sustainable Use of Timbers, as well as over 350 voluntary sustainability standards (VSS). While VSS help firms meet goals, they can create barriers for smallholders in developing countries due to high certification costs and a lack of accredited auditors.
• International cooperation is essential to prevent a 'patchwork' of conflicting initiatives and to address the concerns of low- and middle-income countries, who may lack the finance and technology to meet strict mandatory requirements imposed by wealthier nations.
• The G20 is identified as a unique venue to catalyze dialogue and operationalize the 'ten voluntary and non-binding High-Level Principles on Bioeconomy' established in September 2024. Proposed next steps for the G20 include fostering transparency through standardized reporting and encouraging voluntary commitments to reduce harmful subsidies.

APA

Birkbeck, C. D., & Bellmann, C. (2025). Fostering a Sustainable Bioeconomy: The Role of International Cooperation on Trade. Forum on Trade, Environment, & the SDGs. https://lyrical-cormorant.files.svdcdn.com/production/assets/images/Publications/TESS-Briefing-Note-Growing-the-Bioeconomy-Through-Trade-and-International-Cooperation.pdf?dm=1758014309

Chicago

Birkbeck, Carolyn Deere, and Christophe Bellmann. Fostering a Sustainable Bioeconomy: The Role of International Cooperation on Trade. Forum on Trade, Environment, & the SDGs, 2025. https://lyrical-cormorant.files.svdcdn.com/production/assets/images/Publications/TESS-Briefing-Note-Growing-the-Bioeconomy-Through-Trade-and-International-Cooperation.pdf?dm=1758014309.

Wikipedia

{{cite report |last1=Birkbeck |first1=Carolyn Deere |last2=Bellmann |first2=Christophe |title=Fostering a Sustainable Bioeconomy: The Role of International Cooperation on Trade |publisher=Forum on Trade, Environment, & the SDGs |date=July 2025 |url=https://lyrical-cormorant.files.svdcdn.com/production/assets/images/Publications/TESS-Briefing-Note-Growing-the-Bioeconomy-Through-Trade-and-International-Cooperation.pdf?dm=1758014309 |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{birkbeck2025fostering, author = {Birkbeck, Carolyn Deere and Bellmann, Christophe}, title = {{Fostering a Sustainable Bioeconomy: The Role of International Cooperation on Trade}}, institution = {Forum on Trade, Environment, \& the SDGs}, year = {2025}, month = jul, url = {https://lyrical-cormorant.files.svdcdn.com/production/assets/images/Publications/TESS-Briefing-Note-Growing-the-Bioeconomy-Through-Trade-and-International-Cooperation.pdf?dm=1758014309}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }