To achieve the objectives of the Paris Climate Agreement, a significant reduction in carbon dioxide emissions is needed, as well as increased removals by carbon sinks. In this context, we argue that Climate-Smart Forestry is a necessary, but still missing component in national strategies for implementing actions under the Paris Agreement. Climate-Smart Forestry is needed to (a) increase the total forest area and avoid deforestation, (b) connect mitigation with adaption measures to enhance the resilience of global forest resources, and (c) use wood for products that store carbon and substitute emission-intensive fossil and non-renewable products and materials. Successful Climate-Smart Forestry has important policy implications on finding the right balance between short and long-term goals, as well as between the need for wood production, the protection of biodiversity and the provision of other important ecosystem services. CSF thus can provide important co-benefits that are increasingly being recognized as essential for sustainable well-being.