Forests Under Pressure: The Need for Circularity
Forests cover 4.14 billion hectares of the Earth’s land, storing 714 gigatons of carbon and supporting 80% of terrestrial biodiversity. Yet deforestation destroys 11 million hectares annually. The World Bank projects demand for forest products will rise by 400% by 2050 as industries shift away from fossil-based materials. However, 2023 data reveals over 90% of materials entering the global economy remain virgin. This linear model is unsustainable. If we fail to change how fiber is used and reused, forests will deplete faster than they can recover.
The Forest Stewardship Council’s Circularity Hub
The Forest Stewardship Council (FSC) is evolving its certification system to address this crisis. Launched in 2023, the Circularity Hub is led by Loa Dalgaard Worm, a veteran with 18+ years at FSC. She previously directed FSC Denmark, growing membership from 12 to 140 organizations and raising consumer awareness from near zero to 65% among Danish consumers.
Updating 30-Year-Old Standards
FSC’s current chain-of-custody standard covers 70,000 companies globally. The Circularity Hub is adding circular business models—take-back, repair, and leasing—to this standard, with implementation expected by the end of 2026. They are also developing a framework to certify agricultural leftovers (wheat straw, rice husks, coffee chaff) as alternative fibers for pulp products, reducing pressure on forests.
A Royalty System for Forest Owners
Loa Dalgaard Worm’s boldest proposal is a royalty system that pays forest owners a small fee each time their fiber is reused or recycled. Currently, owners are paid only when trees are harvested, with no ongoing reward for protecting ecosystems, biodiversity, or communities. Companies buying recycled fiber would pay for verified origin data to meet ESG and regulatory requirements, such as the EU Deforestation Regulation (EUDR). FSC already operates FSC Trace, a blockchain-based traceability platform, and partners with Agroisolab on isotope testing that identifies fiber origin within 15 kilometers. They also work with Pixalytics to improve earth observation capabilities. Loa hopes to pilot the royalty system within two years and present it for debate at FSC’s General Assembly by 2029.
Technology and Transparency: Enabling Circularity
Data Infrastructure
FSC is building on existing data tools. These isotope testing methods are already used by large companies and authorities for law enforcement (e.g., the U.S. Lacey Act, Australian ban, EUDR). The challenge is creating a fine global grid of reference samples for isotope mapping. For solid wood products, tracking is straightforward; for mixed pulp products, a probabilistic mass balance system may be needed.
Global South Inclusion
Indigenous communities already safeguard 80% of remaining biodiversity despite being only 10% of the population. FSC’s system must avoid creating extra burdens for small, community-run forests. Strategies include automating data collection via existing auditors, making tools mobile-first, and using smartphones as access points. The goal is to ensure royalty payments reward the stewardship already practiced by these communities.
Will Markets Move Fast Enough?
Loa emphasizes that we once knew how to reuse and repair—our grandparents did. FSC’s circularity work aims to rebuild those systems at scale. Geopolitical pressures are pushing fiber sourcing toward local and regional supply chains, reinforcing the need for closed-loop models. The question remains whether institutions and markets will adopt these innovations quickly enough to protect forests. The ambition is clear: FSC’s Circularity Hub plans to have circular business models in place within a year, and pilots or implementations of all initiatives within five years. For more, visit FSC’s website or email the Circularity Hub team.
Editor’s Note: This article is based on the Sustainability In Your Ear podcast episode originally aired March 2, 2026.