Germany's role in biosolutions IPCEIs can be decisive for Europe

For years, Europe has talked about biotechnology as a strategic technology. The real test is whether Europe is willing to build the industrial capacity needed to compete.

That is why the Important Projects of Common European Interest (IPCEI) on Biotechnologies matters.

Since 2023, Germany, Estonia and Finland have been working to develop this European initiative to help bridge one of the biggest challenges facing the sector: scaling. Eight Member States are now running or preparing national funding calls, beginning with the Netherlands in May 2026, to support projects that can move biotechnological innovation from the lab to industrial production.

Scaling is critical to Europe's competitiveness

Scaling is not a technical detail. It is the key to rebuilding production capacity and reducing strategic dependencies that Europe has gradually lost over the past two decades.

While Europe excels in science and innovation, much of the world's large-scale fermentation capacity has been built elsewhere, particularly in China, which has developed extensive industrial biotechnology infrastructure close to agricultural feedstock sources. The result is growing dependence on external production capacity for a range of bio-based products and ingredients.

This challenge has increasingly moved up the political agenda.

Germany's Biotechnology Roadmap, launched as part of the country's High-Tech Agenda earlier this year, identified the IPCEI as an important instrument for industrial scale-up and commercialization.

Germany has also played a central role in developing the initiative and was expected to lead the bio-based chemicals pillar.

Why Germany's participation matters

If Germany ultimately decides not to account for the IPCEI contribution in its forthcoming national budget, the implications could extend well beyond a single national funding decision.

Germany represents Europe's largest chemical market and one of its most important locations for industrial-scale processing. Its participation provides not only funding, but also critical market pull, infrastructure, industrial expertise and confidence for investors and project partners across Europe.

For many stakeholders, the issue is therefore larger than the future of a single programme.

How can Europe strengthen its industrial sovereignty, reduce strategic supply chain dependencies and build competitive biotechnology value chains if one of its key industrial anchors steps back from the continent's flagship biotechnology initiative?

A crucial moment for Europe's biotechnology ambitions

As Pernille Rype Elley, Director of the European Biosolutions Coalition, notes:

"The global race in biotechnology is accelerating. This is not the moment for Europe to scale back its ambitions. Germany's engagement in the collaborative IPCEI on Biotechnologies represents a unique opportunity to build Europe's industrial capacity, advance bio-based solutions, attract investment and reduce dependence on fossil resources, in line with Germany's own Biotechnology Roadmap under the national High-Tech Agenda. Strong participation from major Member States is essential if Europe wants to remain competitive and secure its place in the industries of the future."

Europe has already identified biotechnology as a strategic technology. Now policymakers must ensure that Europe's scale-up ambitions are matched by long-term commitment, predictable investment frameworks and strong participation from Member States.

Otherwise, the next generation of biotechnology breakthroughs may once again be developed in Europe, but deployed elsewhere.