Reconnecting forest-to-wood value chains: A framework for action
Forests provide far more than their timber. They regulate water flows, cool the atmosphere, store carbon, support biodiversity, and sustain livelihoods. But these benefits are weakened when forest management (or a lack thereof) and wood value chains (e.g., the journey from forest to final product) operate in isolation, which is unfortunately the case in most countries today. Fragmentation weakens climate and biodiversity outcomes, reduces efficiency, and ultimately, makes it harder for forest stewards to invest in long-term resilience.
Climate KIC’s new report, Reconnecting Forest-to-Wood Value Chains: A Framework for Action, sets out a practical path to reintegrate these systems through nine interconnected steps. By aligning the full forest-to-wood continuum – from standing tree to final product – it promotes coherent decision-making, stronger local economies, and greater climate impact.
Seeing forests and wood as one system
A connected approach begins with a systems perspective. Beyond being a source of raw material, forests are dynamic, living systems that function best when managed in harmony with the value chains they support.
This is especially important in the context of the carbon cycle. The Framework presents three key functions that trace how carbon flows through the forest-wood system:
1. Sink: Carbon absorbed and stored in forests through sustainable growth and harvest.
2. Storage: Carbon retained in long-lived wood products like buildings and furniture.
3. Substitution: Emissions avoided by using wood instead of more carbon-intensive materials or fossil fuels.
Understanding these interdependent functions reveals where, and how, the system can be optimised. However, insight alone is not enough, and change requires action across multiple scales.
Figure 1: System Diagram – A simplified view of the interconnections between forest-to-wood value chain functions. Yellow outlined boxes and circles are overarching strategic goals, yellow boxes are key strategic actions, and grey boxes are supportive implementation steps.
Turning insight into action: A nine-step process
The Framework outlines nine interconnected steps to guide transformation. This is not a rigid checklist, but a set of interactive actions to support adaptive, locally driven change:
- Gather motivated stakeholders
Convene forest owners, land managers, processors, policymakers, designers, investors, and local communities to build shared purpose and long-term trust. - Establish the forest-to-wood value chain baseline
Map forest types, ownership structures, governance frameworks, market dynamics, and existing value chains to identify challenges and opportunities. - Analyse the system and set goals
Identify leverage points, feedback loops, constraints, and then set initial goals that can evolve as shared understanding deepens. - Identify and evaluate solutions
Examine existing and emerging initiatives, and add them to a system’s map to generate possible action. - Identify challenge owners and structure governance
Assign leadership, clarify roles, and ensure enabling governance and funding are in place. - Develop a portfolio of actions
Create an action plan that is flexible, interlinked, and responsive to feedback and local needs. - Implement the portfolio of actions
Secure investment, policy support and engage key actors before starting delivery – scaling efforts progressively while building momentum. - Monitor, evaluate, and learn (MEL)
Assess environmental, social, and economic benefits. Return to the baseline and observe system responses – adapting management as climate conditions shift. - Consolidate, adapt and iterate
Not an endpoint, but the start of a new cycle. Reflect on progress, identify what can change and where new momentum can begin.
Maximising value and climate impact
One practical area where systems thinking is urgently needed is in how harvested wood is used. Today, only 10–15 per cent of harvested wood in Europe ends up in timber or wood panels. Much more could be directed into long-lived, high-value products – maximising both carbon storage and substitution.
Strategic opportunities include:
- Expanding use of hardwoods in construction and design
- Repurposing wood by-products into insulation or engineered panels
- Reusing and remanufacturing wood at end-of-life
- Reducing fuelwood demand through more efficient heating and cooking systems
These practices not only deliver better environmental outcomes, but also enhance economic value for foresters and local communities.
Image: Cross-laminated timber classroom in Berlin showcasing the potential for long-term carbon storage through the use of wood in construction. © George McLoughlin.
From fragmentation to regeneration
Reconnecting forests and wood is a mindset shift – from extraction to stewardship, from linear processes to circular systems, and from sustainability to regeneration.
A Regenerative Forest Economy envisions industries and regions where economic activity does not merely reduce harm but actively contributes to the health, resilience, and vitality of forests and the communities that depend on them.
A shared responsibility
This transition requires collaboration and leadership across sectors. Whether you shape land policy, design buildings, manage forests, or invest in infrastructure – your decisions affect the whole system.
This Framework provides the tools. What’s needed now is committed, coordinated action – especially at the local level – to make forests and wood value chains powerful levers for regeneration.