This new decarbonisation study, Building a Low-Carbon Future for Australia developed by Wood Beca, provides a clear, evidence-based view of how the forest and wood products industry can contribute to a lower-carbon future for Australia.
Taking a whole-of-life approach, the study examines carbon flows across the full value chain, from forests and processing through to construction, use and end-of-life. The findings reinforce the important role the industry already plays, while identifying practical opportunities to go further.
A strong starting point
The report shows the industry is starting from a position of strength.
In 2023, the sector accounted for approximately 0.3% of Australia’s total net emissions, while also storing significant amounts of carbon in forests and wood products.
This dual role sets the industry apart. As trees grow, they absorb carbon from the atmosphere, which continues to be stored in long-lived wood products used across the built environment.
Pathways to net zero and beyond
The report outlines three potential pathways for the industry:
- Baseline: Emissions continue to decline gradually under current conditions
- Beyond Net Zero: Targeted operational changes, such as increased use of biomass energy, accelerate emissions reduction
- Building a Low-Carbon Future: Combines operational improvements with increased use of timber in construction
Under the most ambitious pathway, the industry could reach net zero as early as 2029 and move beyond, removing more carbon from the atmosphere than it emits.
The role of timber in construction
A key finding is the impact of material choice in the built environment. Increasing the use of timber, particularly in residential, commercial and mid-rise construction, can significantly reduce embodied carbon.
The report highlights that:
- Early design decisions have a major influence on carbon outcomes
- Timber and hybrid systems offer practical, scalable solutions
- Existing technologies, including engineered wood products, are ready to be applied at greater scale
This presents a clear opportunity for the industry to support Australia’s growing housing needs while contributing to lower emissions outcomes.
Turning insights into impact
For FWPA, this work is about more than analysis, it’s about action.
The report directly supports FWPA’s role in:
- Growing demand for timber products through evidence-based market development
- Supporting members with practical insights that can be applied across design, manufacturing and construction
- Strengthening the industry’s value proposition in a changing regulatory and market environment
By translating research into real-world application, FWPA is helping ensure members are well-positioned to respond to emerging opportunities.
Supporting industry and community outcomes
Importantly, the findings highlight how industry growth and broader community outcomes can go hand in hand.
Expanding the use of timber can:
- Support the delivery of sustainable housing
- Strengthen regional economies and jobs
- Contribute to Australia’s emissions reduction goals
Looking ahead
The report provides a clear direction for the future – one that builds on the industry’s existing strengths while unlocking new opportunities for growth.
FWPA will continue working with members, government and industry partners to translate these insights into practical outcomes, supporting a more productive, competitive and sustainable forest and wood products sector.
The full report, Building a Low-Carbon Future for Australia, is now available to download.
