Using the Life Cycle Assessment (LCA) approach, environmental benefits in terms of CO2 stored in chestnut wood in Italy have been calculated. Using one of the methodologies proposed under the LCA umbrella, a physical and formal balance sheet of CO2 has been built. Chestnut forests (Castanea sativa Mill.) are one of the most critical forest types in Europe. They cover an area of 800,000 hectares in Italy, most of which are managed as coppices. Chestnut wood’s high-quality physical-chemical and mechanical characteristics and medium-long durability explains its widespread uses. In this case study a section of a public forest in Central Italy (Lazio Region) has been considered. In the section, during the rotation, two types of intervention were carried out: thinning at 19 years of age, and final cutting at the age of 32. A production of 416 and 93 m3ha−1 for final cutting and thinning, respectively, was recorded. The global amount of 507 m3 is the functional unit, which has stored 547,875 kgCO2. The combination of forest management and sawmill processing produces semi-finished chestnut timber products for 125 m3, which have a physical storage of 135,210 kgCO2. Using the formal balance sheet of CO2, total emissions from processing were recorded for a total of 27,766 kgCO2. At the exit of sawmill, products stored 107,444 kgCO2, which is the amount of Net-Carbon Dioxide Surplus (Net-CDS). Transportation from sawmill to market reduces the sequestered CO2 by 0.77 kgCO2/km. The Net-CDS represents a competitive advantage in the timber market. If tree species have the same physical, chemical, mechanical and price parameters, the timber consumer would prefer to buy wood with the highest Net-CDS.