With the right backing bio-based technologies, like the conversion of food waste into fuel, could reduce the world’s reliance on fossil fuels, lowering greenhouse gas emissions and helping countries combat climate change, finds a new report from the United Nations (UN).
The Climate Technology Progress Report 2025: Advancing Biobased Technologies in the Bioeconomy finds technological innovation is making a suite of so-called biobased technologies more practical to employ. At the same time, a growing number of countries are developing policies to leverage these solutions in a range of fields, from construction to energy generation.
“Bio-based technologies are an important part of the climate solutions portfolio,” said Anne Olhoff, Acting Director of the United Nations Environment Programme’s (UNEP’s) Copenhagen Climate Centre. “If used carefully, they can support decarbonization and create opportunities for sustainable growth and rural development.”
The term bio-based technology refers to a series of innovations that use renewable biological resources, like agricultural residues, food waste and algae, to generate products and produce energy. Those technologies are reshaping industries, with the global bioeconomy – a term that covers all bio-based technologies – valued at US$4–5 trillion. The sector is projected to reach up to US$30 trillion by 2050. The report showcases the potential of bioeconomy to accelerate the transition to a low-carbon and sustainable future.
It was produced by the UNEP Copenhagen Climate Centre, in collaboration with the UN Climate Technology Centre and Network and the UN Framework on Convention on Climate Change Technology Executive Committee. The report serves as a roadmap for policymakers seeking to accelerate adoption of bio-based technologies in an effort to counter climate change.
Technologies that convert biomass, like agricultural residues, wood, food waste, and animal manure, into energy, fuels and advanced materials are gaining traction across multiple sectors. Mature solutions, such as anaerobic digestion, a biological process in which microorganisms break down organic matter resulting in biogas and fertilizers, is already delivering measurable environmental benefits. Meanwhile emerging technologies like bio-based liquid fuels, produced from things like wood chips, crop residues and algae, need more investment and infrastructure to scale.
The report also noted the potential of a technology known as bioenergy with carbon capture and storage. It involves capturing the carbon that comes from burning biomass and permanently storing it underground, a process that removes greenhouse gas emissions. The technology and others like it are important for countering the climate crisis, the report found. Yet deployment remains far below what is needed to meet Paris Agreement targets. Scaling up these solutions will require more financing, among other things, the report said. At the same time, the report also highlights the need to ensure that the integration of biobased technologies into climate strategies is consistent with broader biodiversity, development and sustainability goals.
Nature-based carbon removal approaches are also gaining attention. They include afforestation, the process of planting trees, agroforestry, the practice of mixing trees with farmland, and soil carbon enhancement, which includes adding compost to soil. These innovations, the report said, bolster biodiversity while also improving livelihoods and food security. The report emphasizes that integrating these into national climate strategies is vital for lasting impact.
While many technologies are technically mature, broader adoption depends on sustainable land-use planning, long-term policy support, and inclusive governance frameworks.
In materials and construction, innovations such as hempcrete, a sustainable building material made from the woody core of the hemp plant, and biochar-infused concrete, a carbon-rich substance produced from biomass, are showing strong potential for carbon storage. Scaling these materials, the report notes, will require circular design principles, effective recovery systems and alignment with regenerative land-use practices.
Bioenergy remains a central component of the bioeconomy. Waste-based biogas offers major climate and socio-economic co-benefits, while advanced biofuels — including fuels that come from algae — show long-term promise but remain costly and technically immature.
Financial innovation is key to expanding bio-based technologies, the report finds The report calls for the scaling up of financing mechanisms, including venture capital and green finance. Persistent barriers include high upfront costs and market uncertainty, especially in developing regions. Strengthening blended finance, linking climate funds to small enterprises, and ensuring regulatory clarity are identified as critical steps.
The report underscores the importance of inclusive governance, policy coherence, and alignment with national socio-economic priorities. Phasing out fossil fuel subsidies, supporting just transitions, and ensuring that Indigenous Peoples benefit from the bioeconomy are emphasized as key to equitable outcomes.
