The circular economy model is based on several priority areas, including biomass and bio-based products. Focusing on them and their use should certainly take their cascading into account use, including how energy from waste from the wood industry is managed. Biomass is one of the most frequently used renewable energy sources in Poland, and in the European Union it satisfies 6% of primary energy. The CE (Circular Economy) model assumes that the reuse, processing and regeneration of a product requires less resources and energy, and is more economical than conventional material recycling, as low quality raw materials. The current model of waste management must take energy recovery into account, without which it is impossible to close the balance sheet of management of many groups of waste. This is also important from the economic point of view. Chemical energy, which is contained in a large part of waste, can be used for energy purposes, including the production of electricity and heat. Reducing the use of raw materials is the most effective environmental approach to solving the waste problem. However, this requires reducing the extraction and consumption of materials, challenging existing production and consumption patterns. In the circular economy model there is a huge difference in approach to recycling leading to new products that create transport and production, new jobs and possible GDP (Gross Domestic Product) growth. The aim of the study is to analyze the use of waste from the wood industry and to present possible solutions for its cascade use, taking the currently implemented circular economy model (CE) into account.