With the 2027/2028 biennial budget, the existing Forest Fund will be further developed and transferred into a new Resilience Fund for Forests and Water. This realignment marks an important step in Austrian forest policy: moving away from short-term crisis measures towards a long-term strategy for adapting forests to climate change. Sustainable bioeconomy — particularly wood-based bioeconomy — has been considered a dedicated priority from the outset and is firmly anchored in the legislation. The corresponding draft law, the Budget Accompanying Act 2026–2028, is currently under review. The information presented here is based on the current draft and may still change during the further parliamentary process.
From Crisis Instrument to Long-Term Transformation
The Forest Fund was established in 2020 as a crisis response instrument. It was introduced against the backdrop of severe damage caused by bark beetle infestations, storms and periods of drought, as well as additional economic disruptions during the COVID-19 pandemic. Its objective was to stabilise the forestry sector quickly and mitigate acute damage. With a total volume of around EUR 430 million, the Forest Fund comprised a broad package of measures — ranging from reforestation and forest protection to research and the promotion of wood use.
With the current further development, this approach is being structurally expanded. The focus is shifting towards long-term forest conversion, strengthening the resilience of forest ecosystems and the targeted further development of value creation based on the raw material wood.
Four Clear Objectives Set Out in Law
The legal text underpinning the Resilience Fund, the Budget Accompanying Act 2026–2028, defines four objectives of equal importance:
- accelerated adaptation to the impacts of climate change, as well as the restoration and strengthening of resilient ecosystems;
- the development of vital, species-rich and climate-resilient forests;
- the strengthening and expansion of the material use of wood in line with the bioeconomy — as an active contribution to climate protection while also safeguarding value creation and jobs in Austria’s regions; and
- the strengthening and expansion of the material use of wood in line with the bioeconomy — as an active contribution to climate protection while also safeguarding value creation and jobs in Austria’s regions; and
Wood-based and forest-based bioeconomy is therefore not an add-on, but one of the four central pillars of the new fund.
New Strategic Orientation of the Resilience Fund
The Resilience Fund will continue key measures of the Forest Fund, but will bundle them more strongly and align them more clearly with climate adaptation and sustainable use. For the forest sector, a total of around EUR 54 million will be available in 2027 and 2028. The focus will be on measures that make forests more resilient in the long term while also safeguarding their ecological, economic and social functions.
Key Funding Areas
The main funding instruments will continue to build on the established measures of the Forest Fund, but will be more strategically focused:
- • Reforestation and forest conversion — Funding will support reforestation after damage events as well as the transition to site-adapted, climate-resilient mixed forests.
- • Development of climate-resilient forests — Silvicultural and adaptation measures will support the conversion of existing stands towards more stable forest structures.
- • Forest protection measures — Measures against harmful organisms, particularly bark beetles, will remain a central component of funding.
- • Forest fire prevention — Given increasing risks, forest fire prevention is becoming increasingly important.
- • Biodiversity and ecosystem stability — The targeted promotion of species-rich and resilient forest ecosystems will be continued.
- • Bioeconomy — The material use of wood and the further development of the wood-based bioeconomy will be promoted as a dedicated priority. This combines active climate protection with regional value creation and helps secure jobs in rural areas.
Focusing and Prioritising Funding
Compared with the Forest Fund, the Resilience Fund will apply a significantly stronger focus in the allocation of funding:
- • concentration on measures with a high impact on climate adaptation and sustainable use;
- • targeted prioritisation instead of broad-based distribution of funding;
- • stronger competition for available funds.
This development must also be seen in the context of tighter budgetary constraints and is consistent with the general trend towards a more impact-oriented funding policy.
The Role of the Bioeconomy
Sustainable bioeconomy is firmly anchored in the Resilience Fund. The legislation explicitly identifies the strengthening and expansion of the material use of wood as one of the four objectives: as an active contribution to climate protection and, at the same time, as a driver of value creation and employment in the regions.
Through the corresponding measure, sustainable bioeconomy is to be specifically advanced in line with the European and Austrian bioeconomy strategies. Dedicated funding has been secured for this area within the Resilience Fund. The Resilience Fund therefore provides a reliable framework for the wood-based bioeconomy, enabling the joint further development of climate-resilient forests and future-oriented material use of wood.
Positioning in the Broader Context
The Resilience Fund forms part of a broader transformation process. It:
- • ensures the practical implementation of adaptation measures in forests;
- • strengthens material value creation from wood in line with the bioeconomy;
- • complements innovation-oriented programmes in research and technology; and
- • links up with the long-term objectives of the European and Austrian bioeconomy strategies.
This shifts the role of forest funding. While the Forest Fund was primarily aimed at crisis management, the Resilience Fund is becoming an instrument for structural transformation, the sustainable stabilisation of forests and the further development of regional, wood-based value creation.
Conclusion
The further development of the Forest Fund into the Resilience Fund represents a clear paradigm shift in Austrian forest policy: from a short-term crisis instrument to a strategic instrument for long-term climate adaptation and sustainable value creation. In the future, the focus will no longer be merely on compensation for damage and stabilisation, but above all on actively transforming forests into climate-resilient, robust and species-rich ecosystems — with sustainable bioeconomy as an integral component of this future-oriented strategy.