Forests cover a third of the planet’s land and store immense carbon, yet deforestation and a surge in demand for wood fiber threaten their future. The Forest Stewardship Council, led by Loa Dalgaard Worm, is pioneering a circular economy approach to keep forests healthy and fiber in continuous use.
- Forests cover 4.14 billion hectares and store 714 gigatons of carbon
- FSC updating certification for circular business models and alternative fibers
- Proposed royalty system rewards continuous reuse of forest fibers
What happened
Forests are a critical natural resource, supporting vast biodiversity and storing huge amounts of carbon. However, 11 million hectares are lost annually to deforestation, and demand for forest-based materials is projected to increase fourfold by 2050 as industries shift from fossil-based products to wood fiber. The Forest Stewardship Council, an established guardian of sustainable forest management, is actively transforming its certification framework to better align with circular economy principles.
Loa Dalgaard Worm, who leads FSC’s Circularity Hub launched in 2023, is developing new standards that include business models like take-back, repair, and leasing. FSC is also creating certification for agricultural residues such as wheat straw and coffee husks to reduce pressure on forests. An innovative royalty system is being designed to pay forest owners ongoing compensation when fiber is repeatedly reused or recycled, a departure from the current one-time payment model.
Why it feels good
This approach restores balance by encouraging sustainable use of natural resources while supporting forest owners and communities. By promoting circularity and alternative fibers, the initiative helps reduce deforestation and landfill waste. It also honors traditional skills like repair and reuse, blending old wisdom with modern innovation.
Technology supports this vision: FSC’s blockchain-based traceability platform and methods like isotope testing ensure transparent sourcing. These tools respond to shifting regulatory demands, such as the EU Deforestation Regulation, while building trust in forest products. The plan to pilot the royalty system within two years offers hope for timely progress towards a truly circular bio-based economy.
What to enjoy or watch next
Follow the Forest Stewardship Council’s efforts to roll out circular standards and expanded certification models, which could reshape how we source and value forest fibers worldwide. Keep an eye on upcoming pilot tests of the royalty system, slated for discussion at the 2029 FSC General Assembly, as this could redefine incentives for forest stewardship.
Learn more and stay connected with the FSC Circularity Hub by visiting fsc.org/circularity or reaching out via circularity@fsc.org. For those interested in sustainability podcasts, the original conversation with Loa Dalgaard Worm aired on 'Sustainability In Your Ear' in early 2026, offering deeper insight into this important transition.