• Energy Research

We examine the emerging forest bioeconomy as an integrated, multi-product industrial ecosystem, where the traditional pulp mills allocate the use of side streams to independent biochemical companies manufacturing bioproducts in the vicinity of the pulp mills. Biochemical companies benefit from the proximity by receiving wood-based side streams at lower costs, and at the same time, pulp mills benefit from having a new source of revenue from selling side streams. We focus on the economic interaction between the pulp mill and the biochemical company, and we study the impacts on the use of wood and profits under perfect and imperfect competition. We demonstrate that the new industrial ecosystem uses more wood than traditional pulp mills, but depending on the side stream, it may promote cascading use of wood-based side streams.

Abstract While climate change and biodiversity loss have exposed humanity to major systemic risks, policymakers in more than 40 countries have proposed the transition from a fossil-based to a bio-based economy as a solution to curb the risks. In the boreal region, forests have a prominent role in contributing to bioeconomy development; however, forest-based bioeconomy transition pathways towards sustainability and the required actions have not yet been identified. Participatory backcasting was employed in this study to ‘negotiate’ such pathways among Finnish stakeholders by 2060 in three forest-based value networks: forest biorefineries, fibre-based packaging and wooden multistorey construction. There are many alternative pathways, ranging from incremental to more radical, to a forest-based bioeconomy within a framework of ambitious climate and biodiversity targets. Path dependence can support incremental development on bioeconomy transition pathways, and this should be considered when planning transition towards sustainability. Orchestration of the more radical changes requires actions from legislators, raw material producers, consumers and researchers, because the possibilities for business development vary between different companies and value networks. The envisioned actions between the pathways in and across the networks, such as forest diversification and diverse wood utilisation, can offer co-benefits in climate change mitigation and biodiversity protection.