Wood plays a vital role in the EU's transition to a climate-neutral and circular economy. However, the climate mitigation potential of wood products depends on their final uses - something that has historically been difficult to track. 

A new ForestPaths study by researchers from EFI, and VITO addresses this gap through a material flow analysis of wood use across all 27 EU member states in 2021. The study follows flows from forest harvest to end-of-life, and tracks both the quantity and sources of wood across the supply chain. 

Results show that 594 million cubic meters in solid wood equivalents were directed to end-uses - 53% to material uses and 47% to energy. The study also differentiates between specific types of wood-based energy end-uses rather than grouping them into a single category. Of the biomass used for energy, 43% originates from primary sources (fuelwood). The remainder is derived mostly from secondary and post-use wood streams. 

Paper and board account for 24% of wood end-uses, followed by construction at 15%. The researchers argue there is potential to increase the share of long-lived uses such as construction, especially given its high carbon storage potential through long product lifespans and material substitution. Wood-based textiles and chemicals - considered promising bioeconomy markets - currently account for only about 1% of material uses, limiting their overall impact on the EU forest sector level. 

Circularity and cascading practices already exist in the EU wood sector, mainly through business-to-business exchanges of by-products, recovered post-consumer wood, and energy generation. These can be strengthened through improved waste management and greater use of recovered wood and residues in higher-value, longer-lived applications. 

These findings provide an important scientific basis for EU policy. Understanding what wood is used for is essential for strategies aimed at enhancing circularity and climate benefits across the European forest-based sector. 

Read the full study here.