This analytic paper (Green paper) is aimed to help in reformation of the management of forest industry. The publication outlines the main problems in forest industry in Ukraine, legislative gaps in this area that limit the development of the branch of economy and preservation of forest ecosystems with necessary conditions for biodiversity and ecological balance maintenance. The document provides environmental and economic arguments for necessity of changes, as well as highlights the possible solution options and positions of stakeholders. In our research, we studied the foreign experience of the leading countries of the world and based our vision on changes in the industry based on the ideas and best practices of forest management in the United States of America and European countries.