Challenges Faced by The Chemical Industry in Strengthening the Bioeconomy in Brazil

Abstract

Objective: This study aims to discuss the chemical industry's role in developing new bioeconomic systems in Brazil. Theoretical Framework: The bioeconomy provides significant opportunities for Brazil. By exploring the country's biodiversity and environmental resources, bioeconomic systems can drive the development of innovative technologies and high-value products across various sectors. Additionally, the bioeconomy plays a crucial role in generating quality employment and preserving ecosystems. Achieving this optimistic scenario depends on the efforts of the Brazilian chemical industry in research and development (R&D). Method: This research is documental and descriptive. We reviewed several sectoral reports focusing on the obstacles to using renewable inputs from Brazilian biodiversity in the chemical sector's value chains. Results and Discussion: Brazil's bioeconomy systems face limited R&D investments due to structural bottlenecks related to the national tax system, logistical infrastructure, and high energy costs. These issues have reduced the competitiveness of the Brazilian chemical industry. Furthermore, increased imports of Chinese chemical products following the Ukraine War and the subsequent industry idleness can exacerbate these structural constraints and further erode the chemical sector's R&D funds. Research Implications: The structural problems described in this article can delay the development of renewable energy sources and innovative bioproducts. Originality/Value: We show that the chemical industry possesses the technology and scale necessary to integrate into Federal Government programs in the bioeconomy field. However, the sector's structural problems and low R&D investments tend to inhibit the development of new bioeconomic systems. Brazil must overcome these challenges to establish itself as a global bioeconomy powerhouse.