From forests to skyscrapers: timber use and value are getting higher

At a side event co-organized by the ITTO during the 21st session of the United Nations Forum on Forests, ITTO Executive Director Sheam Satkuru stressed the need to deliver a clear message that legal and sustainable harvesting is not deforestation. © Soomin Lee/ITTO

From tropical forests to urban skylines, sustainable timber is increasingly being recognized not merely as a commodity, but as a strategic climate solution, an economic engine and a cornerstone of the circular bioeconomy.

At a side event during the 21st session of the United Nations Forum on Forests (UNFF21), leaders from governments, international organizations and industry gathered at the UN Headquarters to explore how sustainable timber value chains can connect responsible forest management with high-value products such as engineered wood and modern timber architecture.

Organized by the International Tropical Timber Organization (ITTO), the Korea Forest Service (KFS), the Food and Agriculture Organization of the United Nations (FAO) and the UN Forum on Forests (UNFF), the event, Empowering Sustainable Timber Value Chains: Bridging Market Intelligence and High-Value Utilization, highlighted how sustainably managed forests can support livelihoods, strengthen rural economies and supply low-carbon materials for the future.

ITTO Executive Director Sheam Satkuru moderated the event and opened with a message that “sustainably managed forests and wood products are essential for achieving global climate goals” and stressed the need to deliver a clear message that legal and sustainable harvesting is not deforestation, but a natural and regenerative practice when underpinned by sustainable forest management.

Opening the discussion, representatives of all the co-organizers stressed that global timber value chains must become more transparent, predictable and innovation-driven to unlock their full environmental and economic potential. From legality verification systems and market intelligence platforms to high-value engineered wood products and timber skyscrapers, participants showcased how countries are reshaping timber’s role in sustainable development.

Guatemala: forests, jobs and governance

Mario René Salazar Arana of Guatemala’s National Forest Institute (INAB) showed how sustainable forestry can drive both conservation and economic growth.

Guatemala’s forestry sector contributes significantly to national GDP, supports more than 450,000 jobs and has reduced forest loss rates while strengthening governance through sustainable trade and anti-illegal logging initiatives. He emphasized that strong forest–industry–market integration can aid producer countries in meeting international trade requirements while improving public understanding of sustainable harvesting.

ITTO: transparency and legal supply chains

Mohammed Nurudeen Iddrisu of ITTO highlighted tools that improve market confidence and transparency, including timber tracking technologies, legality verification systems and the Global Timber Index (GTI).

ITTO’s Legal and Sustainable Supply Chains (LSSC) programme supports countries in promoting sustainable wood use, strengthening domestic markets and improving business collaboration. Examples included Guatemala’s CUBIFOR app for calculating log volume and Panama’s timber-tracking systems that meet geo-location requirements of recent timber trade regulations, including the European Union Deforestation Regulation (EUDR).

Malaysia and engineered wood products

Malaysia’s Emelia Gunggu highlighted the country’s transition from conventional timber and wood product exports toward verified, legal and sustainably sourced engineered wood products (EWP), reflecting a broader move up the value chain.

By focusing on innovation and high-value manufacturing, Malaysia is positioning timber not only as a raw material but as a modern construction solution capable of meeting sustainability demands while increasing competitiveness.

Sweden: building upward with wood

Björn Merkell of the Swedish Forest Agency offered a compelling example of how policy reform can transform wood utilization.

He noted that outdated fire regulations once stalled timber construction innovation for over a century, but performance-based reforms opened the door to modern tall timber buildings. Sweden’s experience demonstrates how regulatory modernization, combined with sustainable forest management, can expand rural value chains into cities while creating long-term carbon storage in buildings.

“Wood is a real climate solution, but only when it is rooted in sustainable forest management”, Mr Merkell said.

Republic of Korea: from reforestation to wood-based innovation

Sungjin Lee of the Korea Forest Service traced the Republic of Korea’s remarkable transformation from degraded landscapes in the 1970s to thriving forests today through 50 years of sustained reforestation.

The country now faces a new challenge: managing aging forests while shifting public perception around timber harvesting. Lee emphasized that sustainable harvesting is essential for forest health and carbon cycle renewal.

Changing perceptions, transforming markets

Across all presentations, one theme stood out: the timber sector must overcome outdated narratives that equate all harvesting with deforestation.

By combining sustainable forest management, transparent trade systems and high-value wood utilization, countries can transform timber from an undervalued commodity into a valuable, renewable and climate-smart material. 

From forests to skyscrapers, speakers agreed that the future of sustainable development depends on building stronger connections between forests, markets and innovation.