Unlocking climate, economic and social value through afforestation, sustainable forest management and circular wood use
Wales stands at a crossroads. With climate action more urgent than ever, timber offers a powerful route to decarbonise construction, regenerate rural economies, and deliver long-term public value. Our latest report, Timber and Decarbonising Wales, sets out how forests and wood products can become a cornerstone of a just, circular and prosperous economy.
Overview
This evidence-based report—part of the Timber Industrial Strategy for Wales—shows how a coordinated approach to forestry, processing and circular manufacturing could unlock a ‘triple dividend’:
- Increased carbon storage and emissions reduction
- Growth in rural employment and gross value added (GVA)
- Enhanced biodiversity, wellbeing and resource resilience
This research was funded by Welsh Government.
This report was authored by Tom Henderson, Woodknowledge Wales
Why timber? Why now?
Wales currently imports around 80% of the timber it uses—despite having ideal growing conditions and an expanding timber construction sector. Meanwhile, forests are under-managed, and most harvested timber flows into short-lived products like pallets and fencing.
The report outlines a new vision. By scaling afforestation, investing in engineered timber and wood fibre insulation, and embracing circular design principles, Wales can meet net-zero goals while generating meaningful, place-based benefits.
What the report covers
Mapping the timber value chain
The report assesses how timber moves through the Welsh economy—from seedling to product reuse—and identifies opportunities to retain more value locally.
Circular timber economy
It introduces the principles of ‘hierarchical use’ and ‘cascading use’, showing how smart design and reuse can increase both carbon storage and economic returns.
Engineered timber and reuse innovation
The report highlights the potential of domestic CLT, glulam and wood-fibre insulation manufacturing to strengthen Welsh supply chains and reduce emissions.
Afforestation and forest management
It shows how increasing woodland cover by 5,000 hectares per year could deliver significant carbon savings, support rural employment, and improve ecosystem services.
Aligning with housing needs
The report explores how Welsh-grown timber—especially C16 Sitka spruce—can meet the demand for low-carbon social housing through programmes like Tai ar y Cyd.
Key outcomes by 2050
- Around 15 million tonnes of additional carbon storage through new forests and timber products
- Up to £30 million in added GVA through value-added processing and reuse
- Up to 850 new jobs across forestry, manufacturing, and recycling
- Greater resilience and public value through biodiversity, flood mitigation, and health benefits
A call to action
This is not a prescriptive roadmap, but a shared evidence base to guide future investment, policy and practice. To realise timber’s full potential for Wales, we need to:
- Design forest and wood systems with circularity in mind
- Build confidence in home-grown timber products
- Align forestry, housing, climate and economic strategies
The report shows how timber can build not just homes—but futures.
Download the full report (PDF)
Timber and Decarbonising Wales Report
For further information or media enquiries, please contact info@woodknowledgewales.co.uk
