Written evidence submitted by CBMNet (CGE0003)

Executive Summary

• A strong and vibrant UK Industrial Biotechnology (IB) sector will be essential in delivering the Industrial Strategy Clean Growth Grand Challenge and lowering carbon emissions
• UK IB has strengths, but a national IB strategy incorporating supportive long-term policies, investment incentives, developing infrastructure and people, within a robust risk-aware regulatory framework is required to expand the sector as a key component of a more sustainable UK economy
• A “National Industrial Biotechnology Strategy (Growing the UK Industrial Biotechnology Base)” will promote the UK as a world leader in IB and the adoption of IB approaches by wealth creating industries

Evidence

1. About Crossing Biological Membranes Network (CBMNet)

CBMNet is a government-funded Research Council Network in Industrial Biotechnology and Bioenergy (NIBB) with over 1,000 academic and industry members. Its purpose is to facilitate academic-industry knowledge exchange and promote UK Industrial Biotechnology activities.

2. Industrial Biotechnology (IB)

IB is the use of biological resources for manufacturing and processing chemicals, materials and energy. A common theme is the use of renewable feedstocks and the power of biological transformations to sustainably manufacture ‘greener’ chemicals and novel products, such as therapeutics, bioplastics and biofuels.

3. Why IB should be at the heart of mainstream UK economic policy

Conventional manufacturing utilizes non-renewable materials in high energy demanding processes, generating greenhouse gas emissions and potentially hazardous/polluting waste. Transition to low carbon, sustainable manufacturing is essential to support future economic growth. IB underpins the new manufacturing processes that are required to deliver the Clean Growth Grand Challenge of the Government’s Industrial Strategy. IB processes can utilize agricultural, food and municipal wastes to deliver clean manufacturing and fuels with lower greenhouse gas emissions. IB can make a major contribution to making many of the 17 sustainable development goals proposed by the United Nations (2030 Agenda) a reality, e.g. in Affordable and clean energy; Decent work and economic growth; Industrial innovation and communities; Responsible consumption and production; Climate action[1],[2],[3]. It is estimated that, globally, 2.5 billion tonnes of carbon dioxide per annum could be saved by developing IB products[4]. At a national level, to future-proof the UK economy, IB processes will be needed to generate cleaner, sustainable ‘drop-in’ replacements for petrochemicals, entirely new materials, such as bio-derived industrial composites, cleaner transport fuels and degradable plastics. Against this background CBMNet, working with partner NIBB, commissioned a report on the current state of UK IB and its future prospects (Developing a Strategy for Industrial Biotechnology and Bioenergy in the UK, 2017[5]). The report set out eight recommendations and these were taken forward in collaboration with major IB stakeholders to put forward an implementation plan (Growing the UK Industrial Biotechnology Base, 2018[6]) launched at a Ministerial Breakfast at the House of Commons.

4. Why the Government should support a National IB Strategy to deliver the Clean Growth Grand Challenge

As was noted by the Committee on Climate Change, in many cases the policies to deliver on emission reduction are not in place and Government funding and policies are needed to ensure the relevant technologies are deployed. The National IB Strategy (Growing the UK Industrial Biotechnology Base) is a plan to build upon existing UK IB strengths. It is estimated that IB contributes £3.7 billion in revenue and £1.2 in UK GVA and provides 14,000 high-skilled, high-salaried jobs. We have a world-leading science and engineering base that is well-placed to deliver innovation and disruptive technologies. However, the breadth of IB applications often results in IB being overlooked in making policy and investment decisions. IB strength is predominantly found in nations with well-established bioeconomy and IB strategies. Although the UK is well-placed to be at the forefront of global IB, it is generally accepted that we could and should do better. Globally, IB is an expanding, high-technology sector that will be essential in delivering the Clean Growth Grand Challenge alongside the creation of high-quality jobs.

5. Our recommendations

We argue that IB will be an essential mainstream component of successful clean, sustainable, high-skilled economies of the future and the UK cannot afford to be left behind. To maintain and enhance UK IB competitiveness the Growing the UK Industrial Biotechnology Base report sets out a coherent national strategy to:

1. Create high-skilled, high-reward jobs
2. Lower greenhouse gas emissions
3. Utilize waste and reduce reliance on fossil fuels
4. Grow the Agri-food sector
5. Enhance pharmaceutical manufacturing
6. Future-proof the UK chemicals industry
7. Create new materials and fuels

Aspects highlighted in bold directly impact on Clean Growth Emissions reduction targets. Investment in and expansion of these aspects of IB will be crucial in delivering the UK Government’s Industrial Strategy Clean Growth Grand Challenge.

In the case of IB the Government should not take a ‘technology neutral’ approach but work with the sector to:

1. Agree a long-term consensus policy landscape that recognizes properly regulated IB as a ‘force for good’ in delivering the Clean Growth Grand Challenge. This will provide certainty and clarity for the IB sector encouraging long-term investment.
2. Create robust regulatory frameworks that support risk-aware innovation. To deliver the Clean Growth Grand Challenge and meet emissions targets, novel IB technologies will be needed requiring legislation in the use and safety of new IB materials, chemicals and fuels. Regulation could be used to advantage IB products, e.g. bio-preferred procurement.
3. Develop and implement policies that create a financial environment that recognizes the role of IB in delivering the Clean Growth Grand Challenge. These could include tax incentives to increase private investment, tax incentives perhaps modelled on those used for film and media sector, a Government sustainable (bio-preferred) procurement policy, UK Research and Innovation (UKRI) initiatives to support academic-industry knowledge exchange and research across the IB supply chain to move early-stage innovation up the Technology Readiness Levels.
4. Invest in regional infrastructure to support SMEs. This could include financial support for SMEs to access existing infrastructure, such as scale-up facilities, and building regional clusters of expertise and infrastructure for modular manufacturing.

October 2018