Friday, November 28, 2025
Europe is at a critical crossroads. The demand for wood across various sectors is expected to rise sharply by 2040, creating a significant challenge for the continent’s green transition. A recent study by the European Panel Federation (EPF), titled Strategic Wood Availability: The Growing Gap Between Strategic Need and Ecological Reality, highlights the pressing issue. The report warns that Europe could face a severe shortage of wood, threatening both industrial supply chains and the EU’s climate goals.
This shortage is especially evident in Southern Europe, where wood availability is projected to fall below industrial needs within this decade. Even under conservative growth scenarios, Europe could experience a deficit of 117 to 190 million m³ of solid wood by 2040. This shortfall is a serious concern for industries that rely heavily on wood as a raw material, as well as for meeting Europe’s ambitious climate targets.
The situation is further exacerbated by the growing pressure on the cascade principle, a key aspect of wood utilisation. Large volumes of wood suitable for long-life applications—such as construction panels and furniture—are currently being diverted to energy generation. This undermines the circular economy, as the potential for long-term carbon storage in these materials is lost. In essence, Europe is using wood in ways that reduce its environmental value, rather than preserving it for high-value material uses.
A strategic approach is needed to safeguard Europe’s wood resources. Companies like Sonae Arauco are advocating for a solution that prioritises wood’s highest economic and environmental value. This approach promotes a more sustainable utilisation of wood, focusing on the following priorities:
By adhering to this order of priorities, the wood sector can play a pivotal role in achieving the EU’s climate objectives. This strategy also reinforces the principles of circular economy and decarbonisation, as outlined in the European Clean Industrial Deal.
The transposition of the Renewable Energy Directive (RED III) marks a decisive moment for the future of Europe’s wood resources. While the EU is committed to renewable energy, the current use of wood for bioenergy remains a point of contention. Burning woody biomass for energy is problematic for several reasons.
First, biomass combustion emits as much CO₂ as fossil fuels, and in some cases, even more. Secondly, regrowing forests to reabsorb these emissions takes decades, if not centuries. A study by the Environmental Paper Network further highlights that biomass has become less competitive compared to other renewable energy sources, such as wind and solar power.
Using wood for bioenergy, especially in industrial settings, is not a sustainable path forward. Therefore, the wood sector is calling for a strategic shift in how this valuable resource is utilised. There is a growing consensus that preserving wood for high-value applications, such as construction and furniture manufacturing, is essential for the long-term health of Europe’s forests and industries.
For industries reliant on wood, it is crucial to maximise the lifespan of wood-based products. One way to achieve this is through the production of wood-based panels using recycled wood and industrial by-products. By doing so, pressure on primary wood resources is reduced, while creating a more sustainable product that supports the circular economy.
Europe’s commitment to sustainable bioeconomy and climate action requires a rethinking of how wood is used. The current trajectory of increasing wood demand, combined with potential shortages, underscores the need for careful planning and policy implementation. Companies in the wood industry must lead the way by adopting practices that prioritise wood for long-term uses that provide the greatest environmental and economic benefits.
By adopting a circular approach to wood usage, Europe can ensure that this valuable resource is used efficiently, reducing waste and minimising its carbon footprint. The cascade principle must be upheld, with wood being preserved for high-value applications rather than being diverted to energy generation. In this context, Sonae Arauco remains committed to advocating for policies that align with ecological realities and contribute to the EU’s decarbonisation agenda.
The decisions being made today will shape the future of Europe’s wood sector. The next decade will be pivotal for ensuring that wood remains a sustainable and valuable resource for industry, climate action, and future generations.
The growing wood shortage in Europe represents a major challenge for industries and climate goals alike. The need for strategic wood utilisation is more urgent than ever. By focusing on circular economy principles and prioritising high-value uses, Europe can safeguard its wood resources for future generations while meeting its environmental commitments. With clear policies and responsible management, Europe can continue to harness wood’s full potential for sustainability and decarbonisation.
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Tags: bioeconomy, circular economy, green transition, Wood availability, wood scarcity, wood-based panels, woodworking and processing
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