This report addresses the role of forest products in replacing fossil-based and GHG-intensive products. The overarching objective is to provide recommendations to strengthen the contribution of substitution by forest products to sustainable development. To that end, this report firstly provides an overview of the understanding of the bioeconomy and the role of forest products across the world. Secondly, we present examples of conventional and innovative forest products and describe their role in the bioeconomy. Thirdly, we present a review of the quantitative and qualitative understanding of the environmental impacts and benefits of substituting fossil fuel-based or -intensive products with forest-based products, and of the contribution of substitution to SDGs. Fourthly, we outline the current understanding of the future global demand and supply dynamics of forest products and the potential impact that increased substitution may have on these dynamics. Fifthly, we identify gaps in the global forest product value chain. Finally, it provides recommendations and conclusions, respectively.