The transition towards bio-based materials in Europe is increasingly shaped by an evolving EU policy landscape. For the wood-based industry, this transition is not limited to the use of renewable raw materials, but extends to all components involved in production processes, including adhesives. As regulations expand to cover environmental performance, safety and circularity, the development of alternative solutions is becoming closely tied to EU policy frameworks. 

In this context, innovation does not take place in isolation. Technological development is influenced by policy priorities, while at the same time, emerging solutions challenge existing regulatory approaches and contribute to their evolution. This interaction is particularly visible in the shift towards bio-based and circular materials. 

Diagram showing EU policy frameworks shaping wood-based industries, including EU Bioeconomy Strategy, Circular Economy Action Plan, REACH & Safe and Sustainable by Design, and Green Deal & Industrial Strategy, all connected to Wood-Based Industries.

Diagram showing EU policy frameworks shaping wood-based industries, including EU Bioeconomy Strategy, Circular Economy Action Plan, REACH & Safe and Sustainable by Design, and Green Deal & Industrial Strategy, all connected to Wood-Based Industries

These policy areas collectively shape the conditions under which materials are developed, assessed and brought to market. 

The EU Bioeconomy Strategy

The EU Bioeconomy Strategy provides the overarching framework for the sustainable use of biological resources in Europe. It promotes the transition from fossil-based materials to bio-based alternatives across industrial sectors, while emphasising the need to respect environmental boundaries and ensure long-term resource availability. 

The bioeconomy already represents a significant part of the EU economy, with an estimated €2.7 trillion in turnover and around 17–18 million jobs across sectors such as agriculture, forestry, bio-based industries and bioenergy. Within this context, wood-based industries are often considered a mature segment of the bioeconomy. 

Stacked bar chart showing value added in billions of Euros from 2013 to 2023 for various bio-based industries, with a dashed line indicating the percentage of GDP.

Figure 1 Overview of the EU bioeconomy Source: Lasarte-López, J., M’barek, R. (2025).  

However, policy priorities are shifting from volume to value and improved lifecycle performance. This includes addressing components that remain dependent on fossil resources, such as conventional adhesive systems used in panel production. As a result, innovation is expected to deliver solutions that are not only bio-based, but also aligned with lifecycle sustainability criteria and circularity objectives. 

Circular economy objectives and material performance

The Circular Economy Action Plan reinforces these expectations by focusing on how materials are designed, used and managed at end of life.

A cross-section of logs with a recycling symbol made of green leaves in the center of one log. (Shutterstock)

The construction sector alone accounts for around 50% of raw material consumption and over 35% of total waste generation in the EU, making it a priority area for circularity improvements. Furniture and interior applications, which rely heavily on particleboard and MDF, are closely linked to these material flows. 

While wood-based panels are often considered recyclable, the type and composition of adhesives can significantly influence recycling processes. Adhesives may affect fibre separation, introduce contaminants, or limit reuse options. 

Policy developments therefore increasingly focus on: 

  • Reducing substances that hinder recycling
  • Improving material recovery rates  
  • Ensuring safe use and end-of-life treatment

This shifts the role of adhesives from a purely functional component to a determining factor in circular performance. Materials must be designed with end-of-life considerations in mind, which directly influences adhesive formulation methods.

Chemical Regulations and Safety Requirements

The REACH Regulation remains a central instrument governing the use of substances in industrial applications. It requires manufacturers to assess risks and ensure safe use throughout the lifecycle of chemicals. 

In parallel, emission standards for wood-based panels have become increasingly strict. For example, formaldehyde emissions in wood-based panels have traditionally been regulated under E1 class limits (≤ 0.124 mg/m³), while the recent EU regulation coming into force in August 2026 introduces stricter thresholds for all products. The new limit for wood containing products will be reduced to ≤ 0.062 mg/m³. 

Building on this regulatory landscape, the European Commission has introduced the Safe and Sustainable by Design (SSbD) concept. This framework extends beyond compliance by requiring that materials are designed to: 

  • Minimise hazard and exposure
  • Reduce environmental impact across the lifecycle
  • Support circular use and reuse
  • Address social and economic dimensions

For adhesive systems, this represents a shift from incremental improvement to integrated design, where safety and sustainability are considered alongside performance from the outset. 

In practice, this approach is reflected in SUSBOARD where SSbD principles are applied  to the development of bio-based adhesive systems for wood-based panels. 

Diagram illustrating the process of creating SUSBOARD, from agricultural raw materials and sugar activation to fermentation and board production, culminating in a living room setting with SUSBOARD furniture.

SUSBOARD integrates SSbD considerations throughout its development cycle, including life cycle assessment (LCA), social LCA, life cycle costing (LCC), and emissions monitoring as well as workplace measurements. From laboratory formulation to industrial-scale validation in particleboard (PB) and MDF production, the project demonstrates how safety and sustainability can be embedded directly into material innovation, while maintaining performance and scalability.

 

A two-way relationship between innovation and regulation 

While regulatory frameworks define requirements that new materials must meet, they also need to evolve in response to innovation and technological progress. 

In the case of wood-based panels, existing standards and testing methods have been developed around conventional adhesive systems. As bio-based alternatives emerge, there may be a need to adapt performance benchmarks, certification schemes and testing protocols to reflect new material properties. 

At the same time, increasing policy emphasis on LCA and circularity introduces additional data requirements. Innovation must generate robust evidence on environmental and social impacts, while also identifying areas where regulatory approaches may require adjustment. 

Ensuring alignment between these two is essential. Hence, if regulation evolves too slowly, it may limit the uptake of new solutions. If it evolves too quickly without sufficient technical validation, it may create uncertainty for industry. 

In this context, initiatives such as SUSBOARD contribute to the broader policy landscape by exploring how bio-based adhesive systems can meet evolving requirements on safety, emissions and circularity, while remaining compatible with industrial production processes. The results generated through such projects can inform future standards, support regulatory adaptation and reduce uncertainty for stakeholders across the value chain.

Conclusion

EU policy frameworks are playing an increasingly central role in shaping material development within wood-based industries. From bioeconomy strategies to chemicals regulation and circular economy objectives, these policies define both the direction and the conditions under which innovation takes place. 

At the same time, the emergence of new solutions highlights the need for regulations to remain responsive and adaptable. Innovation must comply with existing requirements, but regulatory frameworks must also evolve to reflect technological progress and enable uptake. 

For wood-based panels, adhesives represent a key interface where these dynamics converge. Their development illustrates how technical performance, environmental considerations and regulatory expectations are increasingly interconnected. 

The extent to which these elements can be aligned will determine how effectively the sector contributes to Europe’s broader objectives on sustainability, circularity and climate neutrality, and how quickly innovative solutions can reach the market.