Forestry is critically important in South Africa for two reasons: the production and processing of forestry resources has untapped potential for development in addressing the job creation crises and on the other hand forestry is a key leverage point for the global climate change challenge. In particular, entrepreneurs can develop next-generation opportunities to address these challenges in novel way. However, South African forestry graduates lack the 21st century key competences needed to think systematically, act entrepreneurially and to be experts of climate-smart forestry. Problem-based-learning (PBL) is a powerful research-based methodology that Aalto and HAMK have extensively used in international development efforts. PBL integrates the complexity of real-world problems into curricula implementation, and this helps students to create problem solving and critical thinking skills upon which the entrepreneur decision making rests. FOREST21 will capacitate HEIs in student-centered learning, in network-based learning ecosystem building and in practices of climate-smart forestry. FOREST21 undertakes PBL- and climate-smart forestry trainings and the methodology is piloted for contextualization through students’ field works. Each HEI will take a specific role: Aalto, INN and HAMK facilitate methodology, climate-smart forestry and institutional capacity building and INN leads the quality process. All South African forestry HEIs participate FOREST21 with their expertise and defined objectives and together develop PBL-FOREST21 Teacher Manual and establish PBL-FOREST21 Network for peer support and further development of the curricula and methods. All HEIs participate in the student field challenges. The results are disseminated throughout South Africa with facilitation of Associate Partners.