Wood is an extremely versatile and important material that, as a renewable resource, is used in numerous sectors. It plays a key role in construction, furniture production, packaging, and energy generation. A major advantage of wood is its environmentally friendly footprint: It stores CO2 and, through its recycling, contributes to the reduction of greenhouse gases. Waste wood can be divided into various categories, from untreated and easily recycled wood to heavily contaminated, pollutant-laden wood that is subject to special disposal processes. Wood recycling is a key method for conserving natural resources and minimizing waste. Waste wood can be used to manufacture new products such as particleboard or other wood-based materials. Wood that can no longer be recycled can be used to generate energy in biomass power plants, thereby making a sustainable contribution to energy generation and simultaneously supporting the circular economy. This ensures optimal utilization of wood at every stage of its life cycle.