National forestry currently faces a „sustainability dilemma” as, within one area, it has to serve ecological, economic and social interests that in part contradict each other. This article outlines these conflicts of interest between biodiversity, climate protection, and economic efficiency. It closely examines the forest acts of the „Bund” and the „Länder” to identify potential measures for improvement. In particular, it emphasizes the importance of the correct application of European Union law (e.g., the Habitats Directive and the Strategic Environmental Assessment Directive). Finally, the paper presents concrete propositions to improve forestry sector planning and a more sustainable approach to forest land compensation.