In the EU, forests account for about 38 percent of the total land surface. Finland (71-percent of total land area) and Sweden (67 percent) are the most heavily-forested countries, followed by Slovenia, Estonia and Latvia.
However, extreme weather events and the increasing demand for forest services and products, driven by wood-based bioenergy and international trade, has accelerated tree-cover loss in the last decade.
The new strategy recognises the importance of forests in the fight against climate change - but also their role in the renewable energy mix of the EU - of which wood-based bioenergy is the main source.
However, for the first time, the commission has warned that increasing harvesting for long-lived wood products is unlikely to compensate for the reduction of the net carbon sink associated, urging member states to pay attention to "this risk".
And - although many EU policies have an impact on forests in the EU and beyond - forestry policy is still primarily a national competence.
The proposal says that the bio-economy should be "boosted within sustainable boundaries" in a way that minimises its impact on biodiversity.
Under the updated renewable energy directive, the commission has also strengthened its "sustainability criteria" used to determine whether a form of forest biomass can be considered renewable.
For example, primary and old-growth forests (both highly-biodiverse forests) would be completely protected against burning biomass. But they only represent around three percent of EU forested land.
Additionally, the proposal reinforced the so-called "cascade principle" - in a bid to reduce the use of quality roundwood (timber which is left as small logs) for energy production.
Under this principle, wood should be used as much as possible for long-lived materials and products - such as buildings and furniture.
The strategy also emphasises the need to set out incentives to reward forest-owners for biodiversity-friendly management practices - with a "closer-to-nature" voluntary certification scheme.