Frequently Asked Questions
about Carbon Removal Credits
Top 5 Questions about Carbon Removals
All construction projects between the strategic planning phase and the start of implementation are eligible to participate.
The following are excluded:
- Single-family homes (SFH)
- Buildings with less than 300 m³ of timber used in the load-bearing structure
- Construction projects where the origin of the timber cannot be clearly verified
If your project meets the stated criteria, you can send a declaration of participation along with a completed data sheet to carbonsolutions@timberfinance.ch. You will receive feedback within approximately 30 days on whether your project will be included in the portfolio.
The one-time participation fee is CHF 4,000 for project development and data collection. The additional effort required from the project owner is usually minimal, as the necessary data is typically already available through planning or construction management (e.g., from the timber engineer).
- Revenue amount: It depends on market factors such as the demand for Carbon Removal Credits, and the quality and origin of the timber. As a conservative estimate, around CHF 25 per solid cubic meter (or CHF 80 per m³ of installed timber) can be expected. High-quality Carbon Removal Credits can fetch significantly higher prices depending on market conditions—ranging from USD 200 to 1,000 or more per ton of CO₂.
- Revenue distribution: Typically, the majority of the revenue goes to the project owner. A portion (30%) is allocated to Timber Finance as the project facilitator to cover costs for verification, certification, sales, and administration. A smaller share is returned to the forest and its managers to incentivize sustainable forestry practices.
- Project review: Before or during the construction phase, the project is assessed for eligibility (timber volume ≥ 300 m³, verifiable sustainable timber sourcing).
- Data collection: After the building is completed, the actual volume of timber used, the origin of the wood, and other project data are recorded.
- Verification: An independent third-party organization confirms the data.
- Certificate issuance: Based on the verified data, the Carbon Removal Credits are generated.
- Marketing: The Carbon Removal Credits can either be used directly by the project owner (insetting) or sold to climate investors (offsetting).
- Project review: Before or during the construction phase, the project is assessed for eligibility (timber volume ≥ 300 m³, verifiable sustainable timber sourcing).
- Data collection: After the building is completed, the actual volume of timber used, the origin of the wood, and other project data are recorded.
- Verification: An independent third-party organization confirms the data.
- Certificate issuance: Based on the verified data, the Carbon Removal Credits are generated.
- Marketing: The Carbon Removal Credits can either be used directly by the project owner (insetting) or sold to climate investors (offsetting).
Further Questions
Building with timber stores CO₂ and reduces emissions by replacing carbon-intensive materials like concrete and steel. Through carbon removal certification, this positive climate impact becomes measurable and tradable. For project owners, it creates additional revenue opportunities and improves the profitability of timber construction compared to traditional building methods.
Carbon removal credits represent the amount of CO₂ stored in the timber and/or avoided through the use of timber construction. These credits are generated using an ICROA-recognized methodology and sold on the voluntary carbon market. Buyers include companies, institutions, and individuals (“climate investors”) looking to offset or reduce their unavoidable emissions. Carbon removal credits, in particular, are in high demand.
The project participant and main point of contact is usually the project owner (or their representative). The project owner is also the beneficiary of the carbon removal credits and decides whether to use them internally or sell them.
The timber must come from sustainably managed forests and be clearly traceable. FSC or PEFC certifications, as well as Swiss wood, can help simplify proof of origin. Imported timber is permitted if it meets the methodology’s requirements. Regional wood often commands higher carbon credit prices.
No. The project owner can either sell the credits (offsetting) or keep them (insetting). Selling the credits transfers the right to claim the CO₂ benefit to the buyer and generates revenue. Keeping the credits allows the owner to account for the climate impact themselves or sell them at a later time.
- Pre-assessment: The project is reviewed and evaluated.
- Detailed data collection: Next, 3D models, material lists, timber origin certificates, and other documents are requested to carry out further life cycle assessment (LCA) calculations.
- Certification process: After construction is completed and the project is verified, it moves into the certification phase (see certification steps above).
High quality standards require that only the truly additional carbon storage or emission reduction is certified. To determine this, a baseline scenario—what would have happened without the timber construction—is subtracted. As a result, one ton of CO₂ stored in timber may translate into only 0.6 to 0.7 tons of tradable carbon removal credits.
- National greenhouse gas inventories: Clear project registration ensures that the same amount of CO₂ is not counted twice.
- Labels (Minergie, SNBS, LEED): Building labels assess sustainability criteria but do not generate tradable carbon credits. Therefore, double “sellability” is excluded.
- Other initiatives (e.g., Senke CH Holz Association): Standardized registration systems (such as Verra/VCS) ensure that each ton of CO₂ is only counted once.
Additionality means that the CO₂ savings or storage only occur because of the project and would not have happened without it. In timber construction, the timber structure is compared to a standard construction method (concrete/steel). The difference is recognized as an emission reduction. For the storage component, it is examined whether the timber would have otherwise released CO₂ more quickly (e.g., if it had been used as firewood).
Currently, no. In the long term, it may be possible to have such notes recorded. This is being examined.
The new owners must be informed about any existing credits. In principle, the credits remain with the building unless they have already been sold or retired. The holder of the credits can sell them, use them themselves, or retire them.
- Emission reduction credits (avoidance) are usually issued directly upon the completion of the building.
- Carbon Removals (storage) are issued in stages over a set period (e.g., 21 years). In the case of premature demolition, no further credits are issued. Additionally, a safety discount is applied to minimize the risk.
This is based on a linear permanence function. Wood remains in the building for decades. The staggered issuance reduces the risk of CO₂ being released before the full storage effect is realized. Depending on the methodology or standard, other periods (e.g., 50–60 years) may also be applied.
No. However, it is important that during deconstruction or renovation, high-quality reuse (reUse/recycling) or energy recovery with CO₂ capture is possible to prevent the stored emissions from being released.
Currently, the methodology is tailored to timber construction. For other bio-based materials, it would need to be assessed whether their CO₂ storage is long-term, quantifiable, and verifiable. Expansion to other materials may be possible in the future.
The Carbon Removal Credits are sold through partners, ensuring that the property developer and the forest owner receive their rightful shares.
As soon as the minimum timber volume (300 m³) is reliably reached and the project-specific requirements are met, you can submit it. Depending on the price of the Carbon Removal Credits and market conditions, the participation fees could even be refinanced in the first few years.
- Lifespan: LCA calculations often assume 50–60 years, but many multi-story wooden buildings last 80–100 years or longer.
- Deconstruction: If buildings are demolished earlier, future Carbon Removals are forfeited. Certificates already allocated are not retroactively affected.
- Reuse/Recycling: The goal is to preserve the existing structure for as long as possible and later apply a high-quality reuse concept.
A membership isn’t mandatory but can offer benefits (e.g., expanded consulting, networking opportunities, exclusive offers). Additionally, members can integrate the Carbon Removal Credits certification into their own proposals or projects.
Yes. Initially, you can keep the certificates yourself (insetting) and sell them fully or partially at a later point. The achievable proceeds depend on market conditions.
News:
Our project portfolio is now online!
We are continuously accepting new timber construction projects. Certify your project here.
Become a member?
To apply for membership, please complete the membership form and send it to us signed by e-mail or post. Details of the membership categories can be found in the Association Statutes in Appendix 1 on page 8.