This book states developments in the bioenergy market and related policies. Recent bioenergy developments, often induced by policies, lead to a greater connection between energy and agricultural markets and influenced relative food and feed prices and land-use changes. An analytical framework is explained that places bioenergy within the bioeconomy. The impacts of supply push and demand pull polices are discussed, and the reasons for policy interventions are explained. The effectiveness of policy intervention is likely to increase if they are directly linked to a target such as the reduction of emissions or the stimulation of economic growth. Because the bioeconomy is an immature or infant industry, policies that temporarily encourage its development might be analyzed. Technological change and full biomass utilization for food, feed, energy, materials and chemicals may lead to a competitive bio-economy sector. Regulation can possibly deal with indirect effects of bioenergy such as social (land grabbing) and environmental effects (land, water, biodiversity). Given the importance of private sector investments in the development of biotechnologies, excessive regulation might create a disincentive to innovation.