Forests have multiple functions. They are exploited as fuel, construction material and for industrial purposes, and parts of forests are designated for conservation of biological diversity. In addition, forests are particularly important as carbon sinks. According to the FAO (Food and Agriculture Organisation of the United Nations), the amount of carbon stored in forest biomass alone is about 283 gigatonnes (Gt). Together with deadwood, litter and soil, forests store roughly 50 % more carbon than the amount of carbon in the atmosphere.

The pulp and paper industry is one of the biggest industries to utilise forest resources. Increasing paper consumption, lack of forest resources, competition of alternative uses of wood and external environmental pressures are forcing the industry to find alternatives for the current use of wood. Evidently, pulp and paper based on non-wood raw materials are the next big step in the pulp and paper industry.

The recent increase in the demand for biofuels has been increasing deforestation. For example, rainforests in Southeast Asia have been cleared and oil palm plantations have been established instead. Palm oil is a raw material in the current production of first-generation biofuels.

The world's forest cover is estimated to be about 38 million square kilometres. More than half (52%) is situated in tropical areas. Forests have been severely depleted in many areas of the world. Especially in tropical areas, deforestation is proceeding rapidly. During the last fifteen years more than 10 million hectares of the world's forests have vanished annually. The area is equivalent to one-third of the area of Finland, almost half of the area of the United Kingdom or more than the whole area of Greece. Primary forests, i.e. forests with no visible signs of present human activities, are being lost or modified at the rate of 6,000 square kilometres per year through deforestation or logging. The current deforestation rate is slowing down, but it is still continuing at an alarming rate.

Africa and South America have suffered the largest loss of forests in the past few years. The deforestation rate in South America has increased more than 15 % from the rate in the 1990s. The Asian and African countries already suffer severely from the lack of wood resources. For example, the forest area per capita in China, India, and Egypt is 0.2, 0.1 and 0.001 ha, respectively. In addition, many European countries, such as the United Kingdom (0.05 ha), Germany (0.15 ha) and France (0.25 ha), have insufficient forest resources.