The independent study, commissioned by 21 leading wood processors and woodland management companies, found that demand for wood may outstrip supply from 2007 – if all the potential plans of the wood processing and wood energy sectors come to fruition.

This, it concluded, could result in a missed oportunity to tackle climate change and secure greater investment and new jobs in Scotland and northern England.

A total of 60 companies and individuals supplied confidential information on their supply and demand for coniferous roundwood and sawmill co-products.

The study also saw input from the Forestry Commission, ConFof and the Wood Panel Industry Federation.

Alan Bloomfield, head of the study steering group, acknowledged the challenge of matching future supply and demand. But, he believes the forecast identifies important opportunities for the commercial production and use of wood in Scotland and northern England.

ConFor chief executive David Crichton said it was vital that the opportunity to mitigate climate change was not lost.

“It is clear that wood from Scotland and northern England’s sustainably managed forests can help combat global warming by locking up carbon. Wood is also being used to generate renewable energy, which is recognised as an important component of the government’s strategy to mitigate climate change,” he said.

Forestry Commission director-general Tim Rollinson said it was important to have an overview of the wood supply and demand position to “help guide strategic investment decisions and the development of forestry policy”.