Moving towards a bio economy is one of the key policy strategies of the EU. Its vision is of a knowledge-based Europe turning to green growth via innovation, which presents opportunities for the agricultural and forest-based sectors. Sustainable production of renewable resources will be needed, with the conversion of these resources and waste streams into value added products, such as food, feed, bio-based products and bioenergy. Even though we currently lack a transparent and common understanding of the definition of a bio economy, we require improved tools and assessment methodologies to ensure that this intensified use of renewable biological resources is done sustainably.