Australian Forest & wood products industry could reach net zero by 2029

Forest & Wood Products Australia (FWPA) has released a comprehensive industry-wide carbon study showing Australia’s forest and wood products industry is well positioned to support the nation’s transition to a low-carbon economy.

The study outlines credible pathways for the forest and wood products industry to reach net zero as early as 2029, as well as a pathway to go beyond net zero well before 2050, supporting Australia’s climate goals.

Undertaken by Wood Beca, the study was supported by Forest & Wood Products Australia (FWPA), Australian Forest Products Association (AFPA), and Engineered Wood Products Association of Australasia (EWPAA) with funding from the Department of Agriculture, Fisheries and Forestry (DAFF).

The research finds the industry is already close to net zero and, under its most ambitious pathway, could begin removing more carbon from the atmosphere than it emits by 2029, reaching approximately –3 MtCO₂e per year by 2050.

What distinguishes the industry is its whole-of-life carbon profile. Managed forests actively sequester carbon, while harvested wood products lock that carbon into long-lived buildings, packaging and timber products – creating a continuous cycle of capture, storage and regrowth.

The study evaluates three future pathways:

• Baseline, reflecting current trends
• Beyond Net Zero, accelerating emissions reductions through cleaner energy and biomass use
• Building a Low-Carbon Future, combining emissions reductions with increased timber use across residential and commercial construction

Under the Building a Low–Carbon Future pathway, higher uptake of timber in construction significantly increases long-term carbon storage while supporting housing supply and regional employment.

Key findings include:

• The industry currently represents just 0.3 per cent of national net emissions
• Australian production forests and wood products in use and landfill store hundreds of millions of tonnes of carbon
• Increased timber construction delivers both emissions reductions and carbon removals without reliance on external offsets
• Greater use of biomass for energy could halve fossil fuel use in processing facilities by 2050

FWPA Chief Executive Officer, Andrew Leighton, said “forests act as nature’s carbon bank and Australia is one of the few countries where industry can store more carbon than it emits. By growing more timber fibre, using more timber in construction, and switching from fossil fuels to bioenergy, our industry can become a major carbon removal engine, while also helping to build the skills and labour needed for the net zero economy and provide sustainable homes for Australian families,” he said.

Mr Leighton said the study highlights a rare opportunity for Australia to harness the power of renewable, locally produced materials while meeting pressing national priorities.

The report recommends targeted support to accelerate progress, including incentives for biomass adoption, investment in innovation and advanced processing technologies, and measures to scale mass timber construction.

“This is a pivotal opportunity for the forest and wood products sector. With collaboration across industry and supportive frameworks, we can unlock the full climate and economic potential of forestry and wood products. The time to build a low-carbon future is now,” Mr Leighton said.

As demand grows for lower carbon buildings and materials, the study confirms that expanding the use of responsibly sourced timber offers a practical, scalable pathway to net zero and beyond for Australia.

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Source & image credit: FWPA