Public investments would address some of the industrial obstacles to growing the alternative proteins sector in the EU. The option would contribute to financing scaling up in the alternative protein sector. This would include support to infrastructure for producing alternative proteins (as well as other food products[1]) at scale. That includes biorefineries (for algae, microbial fermentation, cultured meat and insects) as well as landing facilities for processing of seaweed. The latter are particularly relevant for small operators. This can correspond to both building new infrastructure and retrofitting existing, suitable infrastructure (e.g. dairy, chemical or petrochemical infrastructure for microbial fermentation). The costs involved may sometimes be very large.[2] They would be partially covered by either co-financing (subsidies) or loan guarantees.

The option would activate existing tools for EU and Member State financial support to industry, such as the Important Projects of Common European Interest (IPCEI) scheme. It is also coherent with the Capital Markets Union 2020 Action Plan, which incorporates a number of measures to support access to finance.

Member States and the European Commission would play a key role in implementing the option, which may be developed in a coordinated manner through dedicated, sector-specific initiatives (such as the EU Algae Initiative – see option 4). It is practically feasible. Politically, some Member States would likely oppose subsidies going to some sectors, in particular cultured meat. However, projects enabling pooling contributions from a group of Member States would not require all Member States to participate.

Advantages

• High relevance to microbial fermentation, algae and cultured meat sectors
• Accelerates the maturation of the alternative protein sector in the EU
• Does not require new legislation

Disadvantages

• Could establish infrastructures having high environmental impact unless criteria were set to restrict funding for certain technologies

Outcomes

It supports the development of physical infrastructure suitable for the sector’s needs.

Beneficiaries

It provides direct support to alternative protein companies to finance scaling up.