Strategies and interventions to support the timber industry: literature review (summary)

The Welsh Government has committed to create a timber based industrial strategy that can develop and sustain the high value production and processing of Welsh wood within the Programme for Government – Update. This commitment was reinforced by recommendations by the Trees and Timber Task Force to develop a Timber Industrial Strategy.

The Timber Industrial Strategy Policy Team commissioned the Climate and Environment Research team in Knowledge and Analytical Services to undertake a literature review of the available evidence on the effective development of a high-value timber industry. In this review, a high-value timber industry relates to high-quality wood being used for high value products, for instance, where products have long-lasting uses or have capacity to be re-used.

The literature review aimed to answer the following five research questions, which were informed by an initial literature search undertaken by Welsh Government Library Services in October 2022.

1. What have other countries done / what kind of delivery models have other countries adopted that have been effective in improving the productivity of woodlands whilst supporting biodiversity, biosecurity, and carbon sequestration?
2. What interventions have governments implemented, throughout the supply chain, in other countries to encourage timber for use in high-value products?
3. How have other countries successfully promoted the use of timber products in the construction industry?
4. How have other countries effectively supported an increased acceptance and implementation of productive forestry practices amongst farmers?
5. What does existing literature indicate are the social benefits of a high-value timber industry, including knock-on social benefits resulting from economic opportunities?

The research questions were grouped into three broad areas which were the basis for three further individual literature searches.

1. International delivery models, examples, and best practice in promoting productive woodlands and encouraging timber for high value products across the supply chain.
2. The acceptance and implementation of productive forestry practices amongst farmers.
3. Social benefits of a high-value timber industry.

The three searches took place between 17 October and 28 November 2023. Searches were limited to evidence sources from and concerning Europe and Canada due to their geographical similarities to Wales. The decision was also taken to include Australia and New Zealand within the literature review due to the prevalence of agricultural land in each country.

When reviewing the findings highlighted in this report, any study limitations should be considered. The main limitations of this literature review were that the search terms used influenced the evidence sources that were returned. There may be further relevant literature published that was not identified as the search terms used did not capture them. Additionally, few evaluations and empirical evidence were identified through this literature review; however, this may have been because of a considerable focus on international strategies and best practice. These strategies set out intended actions to take and the search terms yielded few evaluations of these actions, which may have been due to the strategy only recently being introduced.

Approaches to improve the productivity of woodlands whilst supporting biodiversity, biosecurity and carbon sequestration

Approaches to improve the productivity of woodlands – the potential for harvesting trees for commercial gain - whilst supporting biodiversity, biosecurity and carbon sequestration generally come under the umbrella term of sustainable forest management (SFM). 

The literature identified ways in which SFM has been implemented internationally, including through approaches such as close to nature forestry (CNF) and continuous cover forestry (CCF). Evidence has highlighted that these approaches are used across Europe. CNF / CCF approaches vary but generally involve at least part of the woodland always being retained – this may be through planting different tree species. Literature suggests that this could provide benefits such as increasing tree species diversity which lowers disease risk and lessens the likelihood of supply chain disruption. Less soil disturbance through less felling could also increase woodlands’ net carbon sequestration.

However, evidence has also found that over shorter time periods (2022 to 2050), carbon sequestration potential is greater for faster growing softwood plantations actively managed through thinning and clear felling than other modelled scenarios, including CCF. Over the longer term (2022 to 2100), the difference in carbon sequestration between management scenarios were less pronounced. 

The evidence identified suggests that SFM practices have been promoted internationally through introducing forestry standards that woodland management must adhere to. In the UK, including Wales, the UK Forestry Standard applies to forest management.

As well as introducing standards, the identified literature suggests that certifications for timber products have been introduced based on the view that it will promote trust in products, with some use of timber certified projects in buildings being found. The extent to which this has built trust was less clear in the literature reviewed. 

Grant schemes have also been introduced to support woodlands to undertake sustainable forest management practices. Wales have a range of woodland planning and creation schemes and previously delivered the Timber Business Investment Scheme with European Union funding. 

Strategies and plans from across Europe identify the importance of knowledge sharing and education to support the implementation of sustainable management practices, however the sources identified do not set out how this could be delivered in practice or specific approaches that have proven successful.

Government interventions throughout the supply chain to encourage timber use for high-value products

Much of the evidence identified through this literature review on the timber supply chain focuses on end use, in particular how to promote the use of timber as a construction product.

Governments across Europe and in New Zealand have highlighted the importance of the investment in research to support the timber industry. Suggested areas for promoting research include new technology, forest management and health, the supply chain and timber in construction. In New Zealand, a Timber Design Centre has been created as a clear point of contact for information and advice in timber in construction.

Some countries in Europe, as well as New Zealand, have introduced legislation or updates to building codes which either directly or indirectly support the use of timber in construction. This included introducing requirements for a percentage of timber materials to be used in construction, the introduction of life cycle analyses and the use of timber in specific building types (mid-rise buildings). Most of these changes have happened recently (in the last 3 years) and no evidence was highlighted in the review to determine its effects yet.

Strategies across European countries and New Zealand have identified the importance of education and knowledge sharing around the benefits of using timber as a construction product, largely to industry professionals but also to members of the public. As referenced above, New Zealand have introduced a design centre to do this.

Some governments have introduced requirements for public sector or government buildings to be built using timber or in a way that reduces the carbon footprint. The intention being that governments can lead by example to encourage private construction to use timber, although this literature review did not identify whether this has happened.

Promoting productive forestry practices amongst farmers

Evidence has shown that 90% of land used in Wales is farmland, which suggests that to encourage productive forestry practices across Wales, it will be important to engage farmers.

As in the other two sub-sections, knowledge promotion and sharing was identified within the literature as important. Sources highlight benefits that woodlands can bring to farms both on actively managed agricultural land to shelter livestock and improve water regulation as well as the financial benefits that can come from selling woodland products. There are case studies identified in the literature review which set out examples of how farmers have diversified into woodland management. The review was less able to identify whether this knowledge sharing was successful or what specific methods were effective.

Sources identified highlight the use of financial support for farmers to encourage diversifying into forestry management, however these sources are less clear on whether this financial support would lead to long-term uptake of forestry management for productive forests amongst farmers. In Wales, the Glastir woodland creation and woodland management schemes were identified as examples of financial support for farmers, although these weren’t for productive forestry specifically.

Direct action by governments was identified as a way to encourage farmers to plant trees for commercial purposes, in New Zealand this included advisors who can actively share knowledge with farmers, which has also been a recommended action in England. Legislation was another way that tree planting and management, including for productive forestry, amongst farmers will be encouraged across the UK. The Agriculture (Wales) Act includes Sustainable Land Management objectives which could be supported through the planting of trees.

Social benefits of the use of timber for high-value products

The identified literature suggests that exposed wood in building projects can have both psychological and physiological benefits for people including reduced blood pressure and heart rate and reduced subjective anxiety and fatigue.

Indirectly, another benefit highlighted relates to supporting housing supply. Evidence suggests timber in construction projects can support the housing supply through shorter construction times, allowing for more housing stock to be built in a shorter amount of time. It is suggested that this could support with tackling the housing crisis through faster construction of housing. In Wales, quality standards have been introduced for affordable housing to maximise carbon storage. Timber as a construction product could support this standard through its capacity for carbon storage.

The literature identified a range of evidence on the impact of timber industry growth on jobs. Evidence suggests that the number of jobs in the forestry sector will likely increase over time to support a growing timber and forestry sector. It has been suggested that the nature of roles will change as technology advances but there may also be other opportunities in forest management, trade, communications and marketing. It is less clear from the sources identified whether the increase in certain jobs will lead to an overall net increase or decrease in jobs in the timber and forestry sector.

A number of themes were identified across the five research questions explored in the report. These may be relevant when considering approaches for developing a high-value timber industry in Wales.

The main themes identified

• The use of timber specifically as a product in construction.
• The role of education and knowledge sharing to support understanding of sustainable forest management, design of timber-based buildings and construction, the benefits of timber use in construction and the benefits of planting trees to support diversification of farmer income.
• The use of grants and financial incentives to promote tree planting or sustainable forest management (including among farmers).
• Direct state action through policies and standards to promote sustainable forest management and the use of timber in construction projects.

In terms of the quality and type of evidence identified, the review largely identified government strategies, policies and plans published in the last few years which means observable outcomes are not available yet. The evidence found in this review may have been influenced by the search terms used, as such, different search terms may have yielded different results. 

Wales has an opportunity to ensure monitoring and evaluation is built into the delivery of the timber industrial strategy in Wales to support the overall evidence base on how to effectively support the timber industry.

Report authors: Zach Shirra

Views expressed in this report are those of the researchers and not necessarily those of the Welsh Government.

For further information please contact:
Aimee Krishan
Social Research and Information Division
Knowledge and Analytical Services
Welsh Government
Cathays Park
Cardiff
CF10 3NQ

Email: ClimateAndEnvironmentResearch@gov.wales

Social research number: 7/2025
Digital ISBN 978-1-83715-127-1

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