Taking a bird’s eye view of EU wood-based policy
Untangling policy, institutional, and actor frameworks affecting the wood-based sectors
Europe’s forests and wood-based industries are at a crossroads. They are expected to provide renewable materials for a circular bioeconomy, act as carbon sinks in the fight against climate change and protect biodiversity-rich ecosystems. However, a new report by the European Forest Institute (EFI) reveals that the policies shaping these expectations are far from simple.
The report, which was co-authored by Filip Aggestam, Gerhard Weiss, Jerbelle Elomina and Helga Pülzl, provides a much-needed overview of the fragmented policy landscape affecting the wood-based sectors.
Why wood matters?
Wood is more than just a raw material. It can replace fossil-intensive products such as steel, plastics, and concrete, it can store carbon throughout its lifecycle (in buildings and furniture), and it is key to innovations in textiles, bioplastics, and advanced materials. In short, wood is central to Europe’s transition to a bioeconomy.
However, this role is not without controversy. Policies promoting biodiversity conservation can restrict timber availability, and there is disagreement over whether carbon should be stored in forests or harvested and locked into wood products as part of climate strategies. These trade-offs are at the heart of the EU’s green ambitions.
A fragmented policy landscape
Unlike agriculture or fisheries, there is no single EU wood policy. Competence lies primarily with EU Member States, while the EU influences the sector indirectly through policies relating to climate, biodiversity, trade, energy and industry. This patchwork leads to overlaps, contradictions and gaps.
The report highlights the following example:
- Overlapping regulations: From the EU Timber Regulation to the new Deforestation-Free Products Regulation, wood-based industries face an increasing compliance burden.
- Divergent impacts: A sawmill, a paper mill, and a bioplastics producer are affected by EU wood-based policies in very different ways.
- Unclear priorities: Should forests primarily serve as carbon sinks, biodiversity havens or industrial supply chains? Current EU strategies fail to reconcile these objectives.
Towards policy coherence
In order to make progress, it is argued that greater cross-sectoral coordination and a shared definition of “wood-based policy” at the EU level is needed. Key recommendations include:
- Recognising the role of harvested wood products in climate policy.
- Strengthening governance mechanisms to align industrial, environmental and trade objectives.
- improving monitoring systems to assess policy impacts and adapt flexibly to emerging challenges.
Why this matters now
The EU’s Green Deal, Biodiversity Strategy and Forest Strategy have set ambitious goals for 2030 and beyond. However, without a more integrated approach, wood could become the subject of competing policies rather than a driver of sustainable solutions.
This report makes clear that sustainable wood use touches on many areas, including construction, energy, trade, innovation, and social policy. Understanding the full picture is essential for policymakers, industries and civil society alike.
Read the full report here
Annex (list of EU documents relevant to wood policy): Download here
About The Author
Filip Aggestam
I am Filip, a researcher, procrastinator, and no pasta, living and working in Geneva, with a particular passion for forests and forest policy.