Research object is the formation of the sectoral policy for forest sector. The purpose of research is to develop the theoretical and methodological foundations and conceptual solutions to policy-making for sustainable development of the forest sector and the instruments for its implementation in Ukraine . Research methods: structural and functional, normative, comparative and statistical analysis, institutional analysis, scenario forecasting, economic and mathematical modeling , economic and statistic analysis, comparisons and analogies, expert evaluation. Scientific novelty . For the first time societal paradigm and the concept of forest policy developed, mechanism of selection and combination of instruments and formation of system from them, attitudes of the forestry professionals towards alternative forest policy approaches studied ; sustainable development policy principles for the forest sector in emerging "green" economy are formulated, the model of decision-making on the feasibility of afforestation depending on the conditions of economic incentives developed, new directions of forest policy proposed, the criteria for state forestry enterprises evaluation. It is improved : theoretical and methodological nature and economic content of forest policy ; conceptual basis for instruments using in the context of sustainable forest management stimulating; epistemological approaches to forest policy and economics , forest management conflicts classification , scientific vision of the of state forest policy instruments functions; scenario analysis for decision-making in the forest resource management. It is further developed : understanding patterns of evolution processes for public policy, the essence of economic paradigm shift for forest policy and forest economics and their development trends, principles of institutional change and the main directions of the legal and regulatory framework improving for forest policy, components of the international forest regime. Practical results : The research results can serve as scientific basis of policy-making problem solving for the forest sector sustainable development and its instrumental support at the level of Ukraine , at the regional level and at the level of the sectoral enterprises . Level of implementation : This study results used for drafting forestry development programs by Regional Administrations of Forestry and Wildlife Management in Volyn, Transcarpathian, Lviv and Rivne regions, and environmental policy programs which includes forest certification and wood products chain verification as instruments developed for wood processing enterprises of forest sector. Also it used in the study process through the study programs and curricula development in the National Forestry University of Ukraine. Field of application: forest policy, forest sector economics, natural resource economics.