As a part of climate and renewable energy policies, national targets are being set for minimum shares of renewable fuels of total traffic fuel consumption. The EU is planning to introduce sustainability requirements including minimum targets for greenhouse gas (GHG) reduction to be achieved by liquid traffic biofuels. Forest residues have been gaining interest in being used as a feedstock for liquid biofuels. There are only a few comprehensive studies on GHG emissions available, therefore Metsäteho Oy undertook a case study of the feedstock supply chain of GHG emissions in forest chip production. Feedstock supply chain is only a part of the entire ”stump-to-wheel” production chain of liquid traffic biofuel. Nevertheless, forest residues already look promising as a feedstock for biomass-to-liquid traffic fuel in terms of GHG reduction and energy efficiency.