Across global markets, bioenergy customers and regulators recognize circular economy principles— such as the cascading use of wood—as essential to achieving climate goals. Cascading means using wood in the smartest order: first for long-lived products, then for re-use and recycling and only at the end for energy. This principle is central to Canada’s approach to forestry and the wood pellet sector, guiding how resources are managed from forest to final product. It also aligns with the European Union’s Renewable Energy Directive (REDIII), which requires cascading use and safeguards against market distortions.