Frequently Asked Questions
about Carbon Removal Credits
Top 5 Questions about Carbon Removals
All building projects between strategic planning and the start of implementation are eligible to participate.*.
The following are excluded:
- Single-family homes (SFH) and agricultural buildings
- 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
*A new regulation will apply starting January 1, 2026.
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 Potential: Depends on market factors (e.g. demand for carbon credits, quality and origin of the timber). As a conservative estimate, around CHF 20 per cubic metre of timber (or CHF 31 per cubic metre installed) is assumed. High-quality carbon credits can fetch significantly higher prices depending on the market – between USD 200 and 1,000 or more per tonne 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 Assessment: Before or during the construction phase, the project is assessed for eligibility (timber volume ≥ 300 m³, verified sustainable timber sourcing, compliance with additional criteria).
- Data Collection: During construction, the actual volume of timber used, its origin, and further project data are collected by Timber Finance and uploaded to our cloud platform.
- Verification: An independent third-party verifier, accredited under the ICROA Standard, validates the project.
- Certification: After successful verification, the project is registered under the ICROA Standard and carbon credits are issued.
- Marketing: The certificates can be used by the project developer for their own climate targets (insetting) or sold to climate investors via Timber Finance and its partners (offsetting).
Further Questions
The use of timber in construction stores carbon and reduces carbon emissions by replacing reinforced concrete and other carbon-intensive materials. Carbon certification makes this positive climate impact measurable and tradable. For developers, this opens up additional revenue potential and improves the profitability of timber construction projects compared to conventional solid construction.
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 building owner can either sell the credits with the help of Timber Finance (offsetting) or keep them (insetting). In the case of a sale, the right to carbon accounting is transferred and revenues are generated. If retained, the credits can be accounted for independently or sold at a later date.
- 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 actual additional emission reduction or carbon storage is certified. For this purpose, a so-called reference development (baseline) is deducted. As a result, one tonne of carbon stored in timber may translate into only 0.5 to 0.7 tonnes of tradable 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. There is the option to use the carbon credits for such verifications.
- Additional initiatives (e.g. the association Senke CH Holz): Through standardized registration (e.g. Verra), it is ensured that each tonne is only counted once and that already financed tCO2 from upstream projects are excluded.
Additionality means that the carbon reduction or storage is solely attributable to the project and would not have occurred otherwise. In addition to a cost analysis and a common practice analysis, timber structures are compared to a common-practice alternative (concrete/steel) in timber construction. The difference is recognized as a carbon reduction. For the storage component, it is assessed whether the timber would otherwise have led to faster carbon release.
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 issued once, following building verification.
- Carbon Removal Credits are issued in stages over a defined period (maximum 21 years). If the building is dismantled early, no further credits are issued. In addition, a buffer deduction is applied to minimize risk. The building owner has no administrative burden and is not responsible for monitoring over the 21-year period — Timber Finance handles this entirely.
This is based on a reference development and the verification periods defined by the Verra Standard. Timber remains in the building for decades. The staged issuance reduces the risk of carbon being released before the full storage benefit has been delivered. Depending on the methodology or standard, other timeframes (e.g. 50–60 years) may also apply.
No. We consider the life cycle stages up to construction (A1 to A5). However, it is important that during deconstruction or renovation in 60 to 100 years, high-quality reuse, recycling, or energy recovery with carbon capture is possible in order to avoid releasing the stored emissions.
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 credits are traded and sold by Timber Finance and its partner. If the building owner wishes to retain the carbon credits for their own use (insetting), this is possible.
Once the minimum timber volume (300 m³) is secured and the project-specific documentation is in place, submission is possible. Depending on the carbon credit price and market conditions, the participation fee can be refinanced within the first year.
- Lifespan: Standards often assume 50–60 years, but many multi-story timber buildings remain in use for 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.
Contact us
If you have further questions or would like to submit a project, please contact:
carbonsolutions@timberfinance.ch
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.




