NSG Czech Republic

The Czech Republic is among the most forested countries in Central Europe, with forests covering nearly 34% of the national territory (2.7 million hectares). These forests constitute the foundation of the Czech forest-based sector, which plays a significant role in the national economy and contributes to the European Union’s broader forest bioeconomy. The sector is structured along a value chain ranging from sustainable forest management to advanced wood processing, pulp and paper industries, and increasingly towards bio-based innovations.

Forests and Forestry

Forests in the Czech Republic are dominated by coniferous species, particularly Norway spruce (Picea abies), which still accounts for about half of the standing volume despite recent disturbances. Beech, oak, and other hardwoods are steadily gaining importance, reflecting ongoing forest conversion programs and climate adaptation strategies. The ownership structure is relatively balanced: the state (through Lesy České republiky and the Ministry of Defence) manages about 60% of forests, while private owners, municipalities, and churches manage the rest. Sustainable forest management practices are strongly institutionalized, with more than 80% of forests certified under PEFC or FSC schemes.

The sector has recently faced unprecedented challenges, particularly the large-scale bark beetle outbreaks exacerbated by drought, which peaked between 2017 and 2021. These disturbances resulted in salvage felling volumes exceeding 30 million m³ annually at the height of the crisis, creating both supply shocks and market imbalances. Nevertheless, Czech forestry has responded with reforestation programs prioritizing species diversification, climate-resilient management, and the integration of ecosystem services into forest policy frameworks.

Wood Processing and the Woodworking Sector

The Czech woodworking sector is a cornerstone of the national bioeconomy, employing around 100,000 people and generating significant added value for regional economies. Primary processing is dominated by sawmilling, with a high share of exports of sawn timber and semi-finished products, particularly to neighboring Germany, Austria, and Poland. The sawmilling industry has expanded in recent years due to the surplus of raw material from salvage logging, although capacity adjustments are ongoing as the timber supply stabilizes.

Secondary processing includes furniture, engineered wood products (e.g., cross-laminated timber, glued laminated timber), and other value-added segments. Czech producers are increasingly integrated into European supply chains for construction materials and interior design products. While still characterized by a large number of small and medium-sized enterprises, the sector has also seen consolidation and modernization, with digitalization and automation gradually improving competitiveness.

Pulp, Paper, and Related Industries

Although not as dominant as in Nordic countries, the Czech pulp and paper industry holds a strategic role in the domestic value chain. The industry processes both domestic roundwood and imported pulp, producing packaging materials, graphic papers, and hygiene products. The sector is highly export-oriented and well integrated into Central European logistics networks. In line with EU circular economy policies, Czech paper mills are increasingly shifting towards recycling and recovered paper use, with recycling rates already above the EU average.

Bioeconomy and Innovation

The Czech Republic is progressively embedding its forest-based sector into the broader European bioeconomy framework. Recent strategies emphasize bio-based materials, renewable energy, and substitution of fossil-based products. Research and innovation activities focus on lignocellulosic biorefineries, bio-based composites, hydrogels, and other advanced biomaterials. Universities and research institutes, often in collaboration with industry and EU partners, are fostering knowledge transfer in fields such as forest operations, circular economy approaches, and Safe-and-Sustainable-by-Design (SSbD) concepts.

Biomass energy also remains important: more than of renewable energy production in the Czech Republic originates from biomass, mainly wood residues from sawmills and forest operations, and biogas. This provides synergies between the energy and material uses of wood, though competition for resources is carefully monitored.

Role within the EU Forest-Based Sector

The Czech Republic’s role in the EU forest-based sector is multifaceted. On the one hand, the country is a major exporter of raw wood and sawn timber, especially during the bark beetle crisis, significantly influencing regional timber markets. On the other hand, it is advancing in the transition from a resource provider to a producer of value-added materials and innovative bio-based products. Its central geographic location and well-developed transport infrastructure make the Czech Republic an important node in Central European forest value chains.

Looking forward, the Czech forest-based sector faces the dual challenge of adapting to climate change while enhancing its contribution to the EU’s Green Deal and bioeconomy objectives. Diversified and resilient forests, modernized processing capacities, circular business models, and innovation in bio-based materials position the country to move beyond crisis management towards a sustainable and competitive future.

Research and innovation in the Czech forest-based sector build on strong cooperation between universities, research institutes, and industry, covering the entire value chain from sustainable forest management to advanced bio-based products. The Czech University of Life Sciences Prague, Mendel University in Brno, the Czech Forestry Institute, and the Forestry and Game Management Research Institute serve as key knowledge hubs, addressing topics such as climate-resilient silviculture, forest operations technologies, digitalisation, and ecosystem service valuation. Industrial actors, including sawmills, engineered wood producers, and pulp and paper companies, collaborate with academia to modernize processes, improve efficiency, and enhance the circular use of wood-based resources. Emerging innovation niches include lignin- and cellulose-based composites, engineered timber for construction, and novel biorefinery concepts.

Research and innovation in the Czech Republic are supported through a multi-layered funding system combining national and European sources. At the national level, the Technology Agency of the Czech Republic (TA ČR) plays a central role by financing applied research projects with strong industry participation, while the Czech Science Foundation (GA ČR) supports fundamental research, including in forestry, ecology, and material sciences. Sector-specific programs are administered by the Ministry of Agriculture and the Ministry of the Environment, targeting sustainable forest management, biodiversity conservation, and bioeconomy development. At the European level, Czech institutions and enterprises are active participants in Horizon Europe, the Circular Bio-based Europe Joint Undertaking (CBE JU), Interreg, and other frameworks, ensuring integration into EU-wide innovation ecosystems. Structural funds, such as OP TAC (Operational Programme Technology and Application for Competitiveness), also provide significant co-financing for research infrastructure and technology transfer.