Environment minister Sigmar Gabriel said the new public procurement regulation would set a clear example against over-exploitation and illegal logging, which was essential to contain the destruction and degradation of forests globally.

The move was generally welcomed by the industry and environmental NGOs. The German Timber Council said the decision sent the right signal about responsible sourcing of wood and rewarded voluntary efforts of those in the E181bn forest, wood and paper sector.

The German Association for the Protection of Forests and Woodlands said it would encourage local government to follow the example in their own procurement policies.

More than two-thirds of all German forests are certified to PEFC and about 700 timber and paper companies have opted for PEFC certification. Germany’s national PEFC scheme was re-endorsed to run until 2010.

A PEFC spokesman said: “A fast-growing number of countries have issues governmental policies. This encouraging trend echoes the resolution of the European Parliament early last year, which recommends PEFC as a means to give consumers assurances concerning sustainable forest management.”