Carbon solutions

Timber construction - the scalable carbon removal technology

We give the forestry and timber construction industry access to the carbon markets (carbon removal credits).

Timber construction is rapidly gaining in importance in the context of the climate debate and is becoming increasingly important both in Switzerland as well as by the EU Commission and the UNFCCC recognized as a carbon removal solution. Developments on the carbon markets open up the possibility for timber construction and forest managers to be compensated and monetized for their climate performance – building with timber and managing the forest in a climate-relevant way. For the first time, climate investors have the opportunity to invest in the climate impact of the carbon stored in durable timber construction (Timber Construction Carbon Removals).  

Since 2022, we have been developing the world’s first methodology for timber construction according to an internationally recognized ICROA standard. Recognition is expected in Q4 2024. At the same time, the internationally applicable methodology will be adapted to regional conditions from Q1 2024. To this end, the first pilot projects are being launched and certified in various regions.

Our services:

News:

How do property developers and forest managers benefit from carbon removal projects?

>>> Recording

Tenders for the pilot phase are open until April 30, 2024

>>> Participate

By certifying their timber buildings (supporting structure), property developers receive proceeds from carbon removal credits and emission reduction credits or can offset the carbon against their own carbon footprint (insetting). Forest managers receive the credits proceeds for sustainable, climate-relevant forest management.

The need and demand for carbon removal solutions and their credits (carbon removal credits) will rise to $30 trillion worldwide by 2030. Timber Finance offers climate and carbon investors the opportunity to invest in high-quality ICROA timber construction carbon removal credits and, from 2025, in the first Timber Construction Carbon Removal Fund and to develop new business models.

Timber Finance supports the scientific development of the carbon market in connection with timber construction and sustainable forest management in research groups.

Approach & classification

Timber construction as a negative emission technology

Many industries have long benefited from income from the sale of carbon removal credits. Since 2022, the main winners Negative emission technologies (NET) or carbon removal technologies are becoming increasingly important. These are solutions that remove carbon from the atmosphere and store it long-term in materials or soil. Since 2022, timber construction has been recognized internationally and in Switzerland as a carbon removal solution.

The construction industry is responsible for25 % of Swiss carbon emissions and will release over 150 million tons of carbon through new buildings by 2030. Timber construction can contribute to the decarbonization of the construction industry by storing the carbon absorbed in the forest and bound in the supporting structure for a long time and at the same time replacing emission-intensive materials such as concrete and steel.

This not only benefits the carbon footprint of the construction sector; the higher demand for timber also leads to a different type of timber use, namely from non-use or incineration to long-term cascading use. This creates additional value for forest managers and preserves the multifunctionality and resilience of forests.

Compared to other solutions, timber construction storage certificates are also inexpensive, scalable and quick to implement.

In order to achieve net-zero by 2050, carbon removal credits are indispensable, as residual emissions cannot be reduced with traditional carbon avoidance strategies.

Image: Traditional carbon avoidance projects reduce or offset emissions through climate-enhanced technology compared to business-as-usual activity. Carbon removal credits are purchased to offset emissions that have already been generated. This does not reduce the amount of carbon contained in the atmosphere. Carbon removal technology are also known as negative emission technologies (NET) and store the carbon removed from the atmosphere in the long term.

The high demand for carbon removal solutions is shedding new light on forests and timber construction. Traditionally, carbon removal has been attributed to the forest. This perspective is changing as forests are increasingly exposed to drought, storms and forest fires due to climate change. Forests thus become sources of emissions and can no longer guarantee long-term carbon removal. Timber from forests must therefore be transferred to long-term utilization cycles with securely stored carbon.

Temporary carbon removal in the forest

Permanent carbon removal in timber construction

The methodology

The world’s first carbon removal methodology for timber construction under an “International Carbon Reduction and Offset Alliance” (ICROA) standard.

Since 2022, Timber Finance has been working to combine timber construction with sustainable forest management by the development of a methodology, as carbon removal technology for the carbon markets. The global concept was developed together with an international, 15-member working group and recognized by the ICROA quality standard in December 2023.

1_Tonne

Join us on our journey!

Get the latest information from Timber Finance.

Latest news

Important Legal Notice

Important Legal Notice

The official website of The Timber Finance Management AG (hereinafter referred to as TFM) contains, among other things, information and opinions on investment instruments, products and services (hereinafter referred to collectively as financial products). You can therefore only visit the website if you carefully read and subsequently accept the following important legal information for financial products. With your consent and your access to the website, you declare that you have understood and expressly agree to the legal information. TFM may involve third parties in the operation of the website. The following content also applies mutatis mutandis to information that customers receive, for example in the form of subscribed newsletters. The information as well as the rules of use can be updated at any time. The changes are binding. By the further use of the website and our services we proceed from your knowledge and your agreement.

Local legal restrictions

The website contains information and opinions on financial products (e.g. investment funds) which may be subject to different registration requirements in other countries. It is not directed at natural or legal persons for whom the use of or access to the TFM website would be contrary to the legal system of their country due to the nationality or domicile/registered office of the person concerned or for other reasons. This applies in particular to citizens and/or residents of Great Britain, Japan and the USA.

No recommendation or offer

The published contents constitute neither a recommendation nor an offer to purchase, hold or sell the financial products mentioned or to engage in other transactions or legal transactions. They are for personal use and information purposes only and may be changed at any time without prior notice by TFM, as may these legal notices for financial products. The contents provided in the section on financial products are not recommendations for your investment and other decisions and have no advisory character. Before investing in a financial product, the investor must have carefully read the current legal documents and all other documents that may be required by local legal and regulatory regulations (e.g. prospectus and annual and semi-annual report of an investment fund). It is particularly important to study the legal and risk information contained therein in detail. Before making an investment decision, it is also advisable to consult a specialist.

No warranty

TFM takes the greatest possible care in compiling the contents of its financial products. TFM and its contractual partners do not assume any guarantee or liability vis-a-vis third parties with regard to the correctness, up-to-dateness and completeness of the published content. In particular, TFM is under no obligation to update the content or remove obsolete content. TFM also assumes no responsibility and gives no guarantee that the functions of the website with content on the financial products will not be interrupted or error-free, that errors will be rectified or that the website or the respective server is free of viruses or other harmful components and programs. Furthermore, there may be links on the TFM website that lead to third-party websites. These links are completely beyond the control of TFM. TFM therefore accepts no responsibility whatsoever for the accuracy, completeness and legality of the content of such websites or for any offers and services contained therein. The Internet is an open network accessible to everyone and is therefore not considered a safe environment. TFM therefore accepts no liability whatsoever for the security of data transmitted via the Internet.