Forest wood biomass is one of the basic renewable resources used in the bioeconomy as a raw material for industrial products and fuel. The forest also plays an important role in the global carbon cycle. The increasing demand for wood biomass due to the growing population, as well as the required strategies to face climate change, force us to look at the use of forest wood biomass from a different angle. The European Commission has made a decision about the European Green Deal strategy. The new EU Forestry Strategy, as an element of the European Green Deal, promotes the sustainable use of wood-based resources. Therefore, it is important to know what is the sustainable potential of forest wood biomass and how it can be assessed. This study aimed to assess the potential of forest wood biomass in terms of sustainable development in the European Union. Five estimates were applied, the self-sufficiency ratio, imports-dependence ratio, logging residues rate, recovery rate, and the ratio between annual fellings and the net annual increment of forest wood biomass. The findings indicate that the self-sufficiency in primary wood biomass is quite high, and the ratio between annual fellings and net annual increment of wood biomass is sustainable in total in the EU. However, in separate countries, there are opportunities to increase domestic fuelwood potential and reduce fuelwood imports by using logging residues. The basic idea is that the biomass potential of forest wood has more sustainable use opportunities. This study can provide insight for political direction into how to increase self-sufficiency in wood biomass and maintain a balance between harvesting and the increment of wood biomass at the same time. Future research on the potential of forest wood biomass should consider the distribution potential by countries and counties. The principal conclusions of this study are important for the development of a sustainable bioeconomy and the need to sustainably use the potential of forest wood biomass.