The European Forest Sector Outlook Study presents long term trends for supply and demand of forest products (roundwood, sawnwood, panels, pulp, paper, non-wood products) and services and outlook to 2020, in western and eastern Europe and four major CIS countries, including Russia. It reviews trends for the forest resource, trade, markets and recycling. It stresses the future shift in the balance of the sector to the east, and the importance of cross-sectoral issues, notably consequences for the forest sector of energy, environment and trade policies, which are examined in some detail. The study is based on a major collaborative effort by experts in the countries covered by the study, under the auspices of the UNECE Timber Committee and the FAO European Forestry Commission. The study identifies a number of major policy issues and proposes some policy recommendations, as a basis for future debate.