Brussels, 23 March 2021
Primary Food Processors (PFP) welcomed the improvements made to the revised draft delegated act on climate related objectives under the EU Taxonomy framework while highlighting the need for further adjustments to fully recognise the contribution of primary food processors and bioeconomy value chains to Europe’s climate neutrality objectives.
The organisation reacted to the revised draft delegated act scheduled for discussion by the Member States’ Expert Group on Sustainable Finance and stressed the importance of ensuring that sustainable finance rules remain aligned with broader European Green Deal objectives.
PFP represents industries that process agricultural raw materials such as cereals, sugar beet, oilseeds, cocoa beans and starch crops into food ingredients and a wide range of bio based products used throughout the European economy.
According to the organisation, primary food processors contribute significantly to resource efficiency by valorising all components of agricultural raw materials and producing a broad range of renewable products for food, feed, pharmaceutical, cosmetic, industrial and bio based applications.
The association highlighted that these industries play a key role in replacing fossil based materials with renewable alternatives and therefore contribute directly to decarbonisation, circular economy objectives and the development of a sustainable European bioeconomy.
While welcoming several improvements introduced in the revised draft, PFP expressed concerns regarding provisions that could limit the use of renewable agricultural raw materials in certain bio based applications. The organisation warned that restrictive wording could discourage future investment, reduce innovation and create uncertainty for bioeconomy value chains.
PFP argued that excluding specific bioeconomy outlets from the positive taxonomy framework risks undermining policy coherence and could contradict broader EU climate and sustainability objectives.
The organisation nevertheless welcomed the removal of certain restrictive terminology for industrial applications, broader alignment with Renewable Energy Directive sustainability criteria and greater recognition of greenhouse gas reduction objectives within the revised text.
The association stressed that sustainable finance frameworks should encourage investment in innovation, renewable raw materials and industrial transformation rather than creating barriers for sectors that contribute directly to climate neutrality objectives.
PFP concluded that primary food processors should remain fully integrated within Europe’s sustainable finance and climate transition framework and should be recognised as part of the solution to achieving the European Union’s environmental and climate goals.
PFP members process approximately 220 million tonnes of agricultural raw materials annually and employ more than 120,000 people across the European Union.
