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Wood in the bioeconomy transition: Navigating opportunities and challenges

As wood gains ground in construction, textiles and energy, the bioeconomy promises a cleaner future — but only if rising demand does not come at the expense of forests, rights and ecosystems.
A worker sands a wooden product in a workshop in Yogyakarta, Indonesia.
Wood processing adds value to forest resources and is central to the bioeconomy transition. Photo by Aris Sanjaya / CIFOR-ICRAF

[Editor’s note: This article reflects the personal views of the author]

As we navigate the necessary shift from a fossil-based economy, ​the ​bioeconomy ​stands out as a promising​​ pathway towards sustainability. Within this transition, wood ​is emerging​ as a ​foundational resource: a renewable​, versatile, carbon-storing​ and capable of transforming sectors from construction to textiles​. 

Nature’s ​perfect building material 

​​From where ​​w​e ​stand, wood is no longer just timber — it’s a modern material driving innovation across multiple industries. In construction, engineered wood products such as mass timber and cross-laminated timber offer low-carbon alternatives to steel and concrete. These alternatives not only reduce emissions significantly but also improve thermal efficiency. Buildings made of wood are reaching new heights, both literally and in ambition.

In materials science, breakthroughs in advanced composites, pulp-based textiles, nanocellulose, lignin derivatives and even wooden components for satellites are expanding what wood can do and where it can go. In biochemicals and bioenergy, wood is serving as a key feedstock for renewable fuels and green chemicals, helping displace fossil-based inputs. The potential is vast, and it is no longer theoretical.

The cellulosic textile market ​is ​projected to double from ​USD ​​​35.2 billion​ in 2020​ to ​USD​​ 70.1 billion by 2030. ​Likewise, woody biomass energy markets could ​jump​​ from ​USD ​​​55.3 billion to​ nearly​ ​USD​​ 9​9​​ billion​. ​These are not minor shifts. ​​They point to a fundamental ​reconfiguration of the material economy as industries increasingly recognize the versatility and environmental benefits of wood.

The climate case is just as striking. Using one ton of wood in construction can prevent around 2.2 tons of CO₂ emissions compared to Portland cement. Cross-laminated timber emits just 100 kg of CO₂ per cubic meter, while steel and concrete emit 2,800 kg and 410 kg, respectively.

The scale of future demand

​​​But with opportunity comes urgency. If wood is to anchor the bioeconomy transition, we must ask: Where will all this wood come from? ​​

In 2020, global wood consumption stood around 4.2 billion cubic met​r​e​s​​​, ​divided​​​ between industrial uses and bioenergy. The Global North consumes significantly more industrial roundwood per capita than the Global South, while the South ​relies heavily on wood for household energy, often ​in systems ​with low​​ efficiency. 

The Global North primarily uses industrial roundwood for sawn wood, panels and paper. In contrast, about 85 percent of wood use in the Global South is for household energy, often in inefficient systems operating at only 10 to 20 percent energy efficiency.

A stack of fuelwood is stored under a simple shelter in Kenya.
Stored fuelwood in Kenya. Photo by Anthony Ochieng / CIFOR-ICRAF
A person places pieces of wood into a household cookstove in the Democratic Republic of the Congo.
Wood is used for cooking in a household setting in the Democratic Republic of the Congo. Photo by Axel Fassio / CIFOR-ICRAF

Looking ahead to 2050, a ‘business-as-usual’ scenario projects an increase in ​global ​demand​ to about 4.9 billion cubic met​r​e​s, primarily driven by population growth in the Global South​​. ​However, when we add the projected expansion of the bioeconomy, this puts significant pressure on supply systems. ​​E​stimate​s​ ​suggest ​an additional demand of 1.5 to 2.5 billion cubic meters per year ​will be needed ​by 2050, driven largely by ​new demand for ​construction​ materials, bioenergy, biochemicals​ and textiles. ​Altogether, total demand — under business-as-usual plus bioeconomy growth—could surpass 7 billion cubic meters by mid-century.​​

Meeting this ​rising ​demand​ will​ require​​ a multi-pronged approach, ​extending​​ beyond the ​forests already designated for timber harvesting and tapping into a broader range of sustainable options.​​ Potential avenues include improving yields sustainably in existing production forests, expanding forest plantations (potentially 120-150 million hectares needed), harnessing the potential of agroforestry systems, boosting efficiency, particularly in bioenergy use, and restoring degraded lands for wood production.

Yet each ​of these options ​comes with challenges. Land competition, especially with food production, biodiversity conservation, water resource management and, critically, the land rights of Indigenous Peoples and local communities, all need careful attention. Furthermore, we must mitigate the environmental risks associated with intensified wood harvesting, including deforestation, soil degradation, water pollution and ensuring genuine carbon benefits. 

Coffee agroforestry farm in Yangambi, DRC.
Coffee agroforestry farm in Yangambi, DRC. Photo by Axel Fassio / CIFOR-ICRAF

A ​c​​all for ​sustainable and ​e​​​quitable ​s​​olutions 

​​A wood-based bioeconomy will require robust policy frameworks and a strong commitment to sustainability. That means mandatory certification schemes and enhanced forest monitoring, halting deforestation and protecting primary forests, integrating forest carbon into pricing mechanisms, strengthening governance and harmonizing sustainability standards internationally, ensuring legal recognition of community rights and fair benefit-sharing, and investing in efficiency and reduced waste across value chains.

The transition to a bioeconomy offers immense opportunities, with wood as a cornerstone. Yet, we have a profound responsibility to manage this transition wisely. We need more forests and trees, managed sustainably and equitably. We also have a moral obligation to remain optimistic and to actively shape a future in which forestry and landscapes enhance both the environment and human well-being.