This study aimed to investigate how Industrial Symbiosis (IS) built around thermoelectric power plants (TPPs) located in forest-based clusters in the southern plateau region of the state of Santa Catarina, Brazil, can stimulate the adoption of circular economy (CE) practices. Data were collected to identify the presence of forest-based clusters and the purchase and sale of logs, processed wood, and forest residues from companies within the clusters, and to investigate CE practices using the ReSOLVE framework adopted in two TPPs, which used residues and black liquor as fuel. The results indicate that the nature of the forest-based activities enhances the formation of clusters, especially when TPPs use forest residues for energy production with IS intensified in this process. Brazil has 140 TTPs that use forest biomass with the capacity to generate 5.5 million wK. Three clusters were identified in the study region with purchase and sale, respectively, of logs (78.6 and 100%), processed wood (75 and 66.7%), and wood residues (45.5 and 83.3%) within the region. The case studies indicated the strong occurrence of CE practices in the cases analyzed that contribute to four of the Sustainable Development Goals (SDG) proposed by the United Nations (7, 8, 9, and 12).