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FAO, Bauhaus Earth report highlights wood’s role in cutting construction emissions

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FAO, Bauhaus Earth report highlights wood’s role in cutting construction emissions June 29, 2026 | 12:41 pm CDT googletag.cmd.push(function() { // Start by defining breakpoints for this ad. var mapping = googletag.sizeMapping() .addSize([768, 0], [320, 50]) .addSize([480, 0], [320, 50])…

FAO, Bauhaus Earth report highlights wood’s role in cutting construction emissions June 29, 2026 | 12:41 pm CDT

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Woodworking Industry News

FAO, Bauhaus Earth report highlights wood’s role in cutting construction emissions

Dakota Smith

June 29, 2026 | 12:41 pm CDT

LONDON, Greater use of sustainably sourced wood could help reposition the construction sector from a major greenhouse gas emitter to a driver of climate change mitigation, according to a new report from the Food and Agriculture Organization of the United Nations (FAO) and Bauhaus Earth.

The findings come at a time when the built environment accounts for 37 percent of global energy and process-related emissions. With the global urban population set to double by 2050, a substantial part of the world’s future housing still needs to be built, mostly in Asia and Africa.

Launched during London Climate Action Week 2026, Wood products in the bioeconomy: scenario-based assessment of the potential for engineered wood products in climate change mitigation examines the potential use of wood in construction to reshape demand across the forest sector.

The report underscores that unlocking the climate benefits of wood in the construction sector will depend on strategies to ensure that rising demand supports climate goals without putting additional pressure on forests.  

“Using engineered wood products in construction can significantly support climate mitigation but success will depend on coordinated policies that address regional imbalances, climate risks and governance,” said Zhimin Wu, FAO Assistant Director-General and Director of the Forestry Division.

Rising demand to reshape markets

The report finds that an increase in urban adoption of engineered wood products in construction beyond current trends could increase the annual demand by 50 million m3 globally per year and potentially by as much as 250 million m3, depending on the rate of adoption.

This potential increase could deliver significant climate benefits. The study suggests that with a boost in urban adoption to 20 percent of new residential buildings built with engineered wood products, global emissions could be reduced by 236 MtCO2-eq per year for the period 2025 to 2070, compared to business-as-usual scenarios. About two thirds of this would be delivered from the storage of carbon in engineered wood products, with the remaining benefit resulting from the substitution of wood for more carbon-intensive materials.

The study also highlights the scale of regional impacts. Under the same 20 percent boost scenario, Asia would require an additional 40 million m3 coniferous sawnwood, almost a 30 percent increase from current production levels, while Africa would require nearly 20 million m3, representing an increase of 165 percent.  

The report stresses that realizing the climate benefits of engineered wood products will depend on how forests are managed and how wood resources are used.

Furthermore, the study assesses possible impacts of climate change on forest productivity and competitiveness, as they are also expected to affect future supply. The study identified the potential for North America to shift from being a net exporter to a net importer of industrial roundwood, while Europe could become a stronger exporter.

Climate benefits depend on sustainable management  

Currently, approximately half of global industrial roundwood is supplied by naturally regenerating forests, with planted forests accounting for the rest, the study explains. Planted forests will need to play an increasingly important role in meeting rising demand, but the extent to which they can meet future demand depends on factors such as national policies, sustainable forest management practices and competition for land.

At the same time, around half of all wood removals globally is still used as low-cost fuel, and a gradual shift away from traditional woodfuel use could increase the availability of roundwood for engineered wood products, the report notes.

To maximize the benefits of engineered wood product use as part of a transition to a global bioeconomy, the report recommends early adoption of a series of strategies. These include embedding wood-based solutions in construction, energy and industrial value chains, using and recycling wood products efficiently, and managing trade flows between regions with internationally coordinated governance.

At the same time, the report highlights the importance of sustainability standards and strong governance frameworks to ensure forest conservation and restoration, and protecting naturally regenerating forests.

The report concludes that coordinated action is needed to guide the transition to a forest-based bioeconomy and to ensure that growing demand for wood products supports both climate and sustainability goals.

The report was prepared in the context of the Global Forest Resources Assessment with the assistance of the European Union.       

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About the author

Dakota Smith

| Assistant Editor

Dakota is an assistant editor at Woodworking Network, avidly exploring the woodworking industry.

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