The G20 recently reached a landmark agreement on bioeconomy principles, establishing a global framework that outlines the use of renewable biological resources for sustainable economic growth.

Bioeconomy, or the economy driven by biological resources, such as plants, animals, and microorganisms, plays a crucial role in addressing climate change, conserving biodiversity, and promoting social equity. The newly established principles are expected to guide G20 countries in their development of policies, capital investments, and multinational agreements, ensuring that bioeconomic benefits are widely and equitably shared.

“The importance of this consensus is that it will serve as a reference point for future international agreements and the allocation of capital,” explains Palladium’s Marcio Sztutman. “Looking ahead, whenever G20 member countries direct resources or engage in multilateral trade agreements related to the bioeconomy, they will always look to these principles for guidance.”

The framework not only outlines broad goals for economic development but also emphasises poverty alleviation, food security, and social inclusion, particularly for vulnerable populations.

The principles highlight the significance of biodiversity conservation, recognising it as a source of wealth for economic development. “In terms of biodiversity, the G20 principles underscore its relevance for the bioeconomy, seeing it as a key driver of sustainable economic growth,” Sztutman adds.

This inclusion ensures that the bioeconomy is not just about producing resources but also about preserving the ecosystems that make those resources viable.

Additionally, indigenous communities—who often possess crucial knowledge used to develop bio-based products—are specifically mentioned. “It’s common for indigenous knowledge to be exploited without fair compensation, but these principles help safeguard against that, ensuring fair distribution of benefits.”

The consensus also encourages the development of local bioeconomies that can participate in global supply chains, particularly in developing nations. By integrating these regions into larger economic systems, the G20 principles help ensure that the bioeconomy doesn’t disproportionately benefit wealthier nations.

“Speeding up bioeconomy development will ensure that developing nations are not left behind. Their territories, rich in biological resources, could become central to global supply chains, allowing them to benefit economically,” notes Sztutman.

Leading from the Global South

Brazil’s leadership in this G20 initiative is also worth noting.

As a leader in aligning the Global South’s interests with global bioeconomy priorities, Brazil has fostered South-South collaboration, bringing the unique perspectives of developing countries to the forefront of international policy. This leadership has highlighted the importance of biodiversity in economic development and has furthered the conversation on sustainable, equitable growth. Sztutman notes that had another country been leading the G20 this year, chances are they wouldn’t have brought these principles to the table.

The broad nature of the G20 principles allows for their flexible application across different sectors and geographies. “These principles are both comprehensive and concise, making them adaptable and easily implementable across various nations and industries.”

Looking ahead, the bioeconomy principles are expected to play a central role in shaping discussions at upcoming international conventions like Biodiversity COP16, being held in Colombia, where bioeconomies and climate change will be at the forefront. “The principles contribute to the ongoing discussion about how to generate wealth from biodiversity. COP16, which will address biodiversity conservation and economic development, will likely build on these principles,” says Sztutman.

Moreover, the agreement signals to global markets the kind of economic development the G20 wants to see in the future.

With the rise of regulated carbon markets, which allow industries to trade carbon credits as part of emissions reduction efforts, these principles could help direct capital flows toward bioeconomy initiatives. “As the bioeconomy continues to evolve, these principles will guide capital investments and could be instrumental in future agreements. The G20 has laid the groundwork for bioeconomy growth that is both sustainable and inclusive.”

The G20’s bioeconomy principles represent a forward-thinking, globally significant framework that ensures equitable, sustainable development. By addressing poverty alleviation, biodiversity conservation, and indigenous rights, these principles set the stage for future international policies and investments that will benefit both developing and developed nations.