Overexploitation of natural resources have caused serious environmental issues, including climate change, biodiversity loss, habitat degradation, and soil and water pollution. The Pan-European criteria and indicators for sustainable forest management offer a tool to monitor progress and report on the sustainability of forest resources at sub-national, national, and regional levels. This paper examines the institutional aspects and possibilities of application of these criteria and indicators in the forestry sector of the Federation of Bosnia and Herzegovina (FBiH), aiming to improve forestry conditions and develop a coherent forest policy. A survey of 360 forestry experts from FBiH revealed that the majority support the positive impact of implementing the Pan-European criteria and indicators in the forestry sector. It was determined that the Ministry of Agriculture, Water Management, and Forestry of FBiH should be responsible for developing and collecting data related to these criteria and indicators. However, the primary barriers to implementation include a lack of financial resources, expertise, and commitment. While the public forest administration is formally prepared to apply these criteria, its current capacities are inadequate for effective implementation. Strengthening the capacity of the public forest administration is crucial to ensure the application of the Pan-European criteria and indicators for sustainable forest management. This would enable consistent and systematic monitoring and improvement of forest resource conditions and the overall state of the forestry sector in FBiH.

The sustainable forest management concept contains the essence of the sustainable development paradigm - meeting the current needs of society without compromising the needs of future generations. The strategic commitment of the Faculty of Forestry University of Sarajevo is aimed at quality education of forestry experts, conducting innovative research and the most intensive cooperation with the economy. The methodological approach in this paper is based on a critical analysis of the scope of the educational-research process at the Faculty of Forestry University of Sarajevo, and the potentials of sustainable forest management in BiH, to determine to what extent higher education and research on environmental, sociological and economic aspects of forest management can affect positive changes in BiH society. Apart from identifying the benefits of forest ecosystems in the context of contributing to sustainable development, the research on the attitudes of teaching staff related to the contribution of the educational-research process to general goals of sustainable development from the 2030 Agenda was conducted. The results of this paper show that the concept of sustainable forest management, as it is realized in educational-research process at the Faculty of Forestry University of Sarajevo, has significant potential to contribute to sustainable development in BiH. This contribution is reflected in biodiversity conservation, mitigation of climate change, carbon storage, prevention of natural disasters, impact on the stability of water and soil, energy supply from renewable sources, continuous economic growth, socially responsible production and consumption, job security, development of rural and urban areas as well as maintaining and improving the psychophysical health of the population. Based on the obtained results, it can be concluded that sustainable forest management, grounded on scientific postulates, understanding of diversity of forest ecosystem services and dynamics in society's requirements towards forests, multidisciplinary and cross-sectoral cooperation, can be an important factor of sustainable development in BiH.

In order to define functional model of governing of forest resources in F B-H, as well as efficient and effective organizational model of the forest enterprises, qualitative research has been conducted for the purposes of this paper. Through direct interviewing of all key forest policy decision makers in F B-H, opinions and attitudes about these questions were collected. Based on analysis of interest groups importance as well as influence and involvement in the process of creation of the functional forest governing model in F B-H functional governing model has been proposed with clear emphasis of advantages concerning present model. Principles of sustainable governing and management of forest resources, assurance of participative approach in the process of decision making and transparency were basis for definition of functional governing model for management of forest resources. For provision of optimal model of organization of forest sector in F B-H, it has been crucial to define ecological, sociological, economical and other criteria, that user of forest resources should respect. The optimal number of organizational units, which manage forest resource on the territory of F B-H, depends from the achievement of the established criteria and real capacities for establishment of the enterprise. This would lead to further decentralization in management of forest resources in F B-H; that would have its positive effects.

UDK 630*6/.9(497.6) This paper deals with the forestry production cost analyses realised in Federation of B&H. The results of research point out on high differences of production costs between individual forest enterprises, caused by various ways of cost calculation, as well as by various production conditions. Therefore, the data obtained from enterprises are not comparable in whole, and as such, the data could not be used as the bases for calculation of an objective forestry production cost. To effect the activity based costing (e.g. activity of silviculture or forest utilization) is of particular importance. The used methodology is based on traditional costing, which is appropriate only for calculating direct costs, and not adequate to determine overhead (indirect) costs. Regarding these costing methods for calculating costs in forest enterprises, their performed forest activities are not appropriately valued. Today, as overhead costs are of considerable importance, the demand for more accurate costing methods has increased in the field of forest management. ABC (Activity Based Costing) method is a new dimension of cost analysis to record costs for each forest activities, towards objective forest management cost production determined. At the same time, it reveals the necessary costs for each activity, assures the proper layout of overhead costs to the forest activities. On the base of the defined forest activities for realization of forest management goals, as well as forest production capacities, we could understand the forest enterprises ability to achieve the goals and also to pay rent for using forest resources.