Timber constructions in the EU policy framework

Timber constructions are supported by a number of EU environmental policies.

The new EU Forest Strategy to 2030 states that wooden products play an important role in transforming the construction sector from a major source of greenhouse gas emissions into a carbon sink. In line with the principles of the life cycle and the circular economy, construction companies should reflect all the benefits of timber constructions in their risk premiums and business models.

The “Renovation Wave” strategy states that in order to minimize the environmental footprint of buildings, it will be essential, among other things, to ensure “efficient use of resources and a circular economy, combined with transforming part of the construction sector into a carbon sink, for example by promoting green infrastructure and the use of organic building materials capable of storing carbon, such as wood.”

Similarly, one of the thematic axes of the EU initiative New European Bauhaus (NEB) is “the need for long-term thinking within the life cycle of the industrial ecosystem,” whereby “renewed and renewable materials should be better recognised by all relevant sectors and should become part of design paradigms. The use of sustainably produced and sourced natural-based building materials, such as wood, bamboo, straw, cork or stone, should be increased.”

The updated EU legislative framework in connection with the European Green Deal (in particular the EU Taxonomy, the Corporate Sustainability Reporting Directive, and the Energy Performance of Buildings Directive) indirectly supports greater use of timber structures and timber buildings, primarily through the introduction of new requirements for measuring and subsequently reducing the carbon footprint of buildings (GWP) throughout their entire life cycle, including CO₂ emissions embedded in construction materials.

In November 2024, the EU Council also definitively approved a regulation establishing the first EU-wide voluntary framework for the certification of carbon removal activities. One of the eligible activities is the capture and storage of carbon in long-lived products for at least 35 years (with wooden construction products given as an example). In its delegated acts, the European Commission will subsequently set out certification methodologies, with priority, in the case of long-lived products, given to developing a certification methodology for wooden and other natural-based construction products. One possible use of certification will be revenues from the sale of carbon removal credits by construction companies or property owners who invest in the long-term use of sustainable building materials (including wood) that remove and store carbon.

What does this mean for you as a future homeowner?

European legislation sends a clear signal to all of us — architects, developers, and future residents alike: the future of construction is wooden, renewable, and carbon-conscious. For you as an investor, this translates into new opportunities. Whether it’s more accessible certifications, subsidy programs, or even the possibility of earning carbon credits for choosing long-lasting wooden structures, every step toward a passive timber home is today also a step in line with Europe’s vision of healthy, sustainable, and responsible living. At ZEO Homes, we are already building today the way others will build tomorrow.

Raw material policy for wood

The document “Raw Material Policy for Wood” was prepared by the Standing Working Group on Raw Material Policy for Wood under the Government Council for Energy and Raw Material Strategy of the Czech Republic, in cooperation with the Ministry of Agriculture (MoA), the Ministry of Industry and Trade (MIT), and the Ministry of the Environment (MoE). Wood is a strategic raw material for the Czech Republic, and it is essential to ensure its sustainable management while promoting its use and innovative potential.

Current situation and outlook

• Analysis of wood resources: The total stock of timber in the Czech Republic is 862.8 million m³, of which 70.6% is coniferous and 29.4% deciduous wood.
• Harvest outlook: A decline in timber harvesting is expected due to the bark beetle calamity, along with a gradual decrease in the harvesting of coniferous wood until 2053.
• Processing industry: The wood-processing industry consists mainly of sawmilling, wooden product manufacturing, the paper industry, and the furniture industry. The largest wood consumption is in sawmilling and pulp production.
• Use of wood in construction: The share of timber buildings in the Czech Republic is relatively low compared to some European countries, but it shows a growing trend.
• Biomass: In 2022, 5,243.7 thousand tonnes of biomass were used for energy purposes, mainly from forest harvesting residues and by-products of wood processing.

SWOT analysis

• Strengths: Ecological and sustainable renewability of wood, long-standing tradition of forestry and woodworking in the Czech Republic, and the potential of wood in the circular economy.
• Weaknesses: Low added value in wood processing, high volume of raw wood exports, insufficient use of modern technologies, and limited support for wood use in public procurement.
• Opportunities: Increasing the use of wood in construction, developing new wood-based technologies, and supporting the recycling of wood waste.
• Threats: Climate change, shortage of qualified workforce, high competition on the European market, and growing administrative burden.

Suggestions

• Long-term vision: Wood is a strategic commodity, managed sustainably, ensuring a sufficient resource base and efficient domestic processing with high added value.
• Priority objectives: 
  • Ensure a long-term sustainable supply of available wood. 
  • Promote the use of wood as a renewable raw material. 
  • Increase the production of wood-based products with higher added value.

Measures for implementation

• Development of financial support for forestry and afforestation.
• Adjustment of standards to increase the use of wood in construction.
• Promotion of wood and wooden products.
• Support for wood waste recycling.
• Active participation in the European platform for wood policy.

Conclusion

The implementation of the Raw Material Policy for Wood is a joint task of the Ministry of Agriculture, the Ministry of Industry and Trade, and the Ministry of the Environment. The Standing Working Group will monitor, evaluate, and propose concrete measures to the Government of the Czech Republic. The priorities are sustainable forest management, increasing the use of wood in society, and supporting innovation in the wood industry.

What does the Czech raw material policy mean for your future home?

For anyone considering a home built from natural materials, it is encouraging to see that the Czech Republic recognises wood as a strategic raw material. The new Raw Material Policy confirms what we at ZEO Homes have long believed, that wood is not only environmentally responsible, but also culturally and economically meaningful. Supporting its processing with higher added value, investing in new technologies, and adopting modern construction standards all create better conditions for building passive wooden homes. It is a path that benefits both the landscape and each of us who wishes to live in harmony with nature and with ourselves.

Wood as a path to the future

Czech and European legislation points in a clear direction: wood and other natural materials are becoming the foundation of healthier, more sustainable, and more responsible construction. For future homeowners, this means not only the opportunity to invest in housing with long-term value but also the chance to become part of a positive change that benefits society as a whole.

Stay tuned for the next part of this series, we’ll explore sustainable construction in the Czech Republic, including concrete trends and examples that are already transforming the way we build and live.