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The methodology
Engineered Wood for Decarbonizing Construction
Relevance for Climate Targets
To reach net zero by 2050, carbon storage technologies are essential. Traditional mitigation strategies alone cannot eliminate the remaining residual emissions. That’s why negative emission technologies (NETs), which actively remove carbon from the atmosphere and store it long-term are gaining importance. Since 2022, timber construction has been recognized internationally and in Switzerland as a valid carbon storage solution.
Image: Carbon Removal Credits
To achieve net zero by 2050, we need a combination of emission reductions and carbon removals.
Carbon Removals play an essential role by compensating for residual emissions and storing carbon long-term.
The following model illustrates the path of declining emissions and increasing negative emissions through 2100:
Source: IPCC 6th Assessment Report, Working Group III – Mitigation of Climate Change, Chapter 12
IPCC-recognized carbon removal technologies. Based on Swiss Clean Tech (2024), aligned with the IPCC taxonomy (2023).
The Potential of Timber Construction
The construction industry is responsible for up to 40% of global carbon emissions and is expected to release even more carbon in the coming decades. Timber is the most efficient building material for carbon storage. In timber construction, carbon stored in forests is locked into the building structure, replacing carbon-intensive materials such as concrete and steel.
Despite its potential, only around 1% of all urban, multi-story buildings worldwide are currently built with timber, mainly due to cost barriers and a lack of incentives. New instruments are needed to unlock this potential and establish timber construction as an effective climate solution.
As forests lose carbon storage capacity due to climate change, drought, and wildfires, timber construction enables the transfer of temporary forest carbon storage into long-term storage in the built environment.
This growing demand for timber is also reshaping forest management: away from non-use or combustion toward long-term cascading use. This creates additional value-added opportunities for forest owners while preserving forest multifunctionality and resilience.
Temporary Carbon Storage in Forests
Permanent Carbon Storage in Timber in Construction
The Methodology for Engineered Wood for Decarbonizing Construction
The world’s first ICROA-compliant VCS methodology for timber construction enables precise quantification of carbon storage and certification as Carbon Removal Credits.
Since 2022, we have been developing this approach together with partners and pilot projects.
Official recognition is expected in Q3 2025. In parallel, the methodology is being adapted to regional frameworks.
It ensures that only verifiably stored and permanently sequestered carbon is credited – fully transparent, independently verified, and in line with the highest climate standards. In the future, it will also comply with the EU Carbon Removals Standard.
The methodology meets all requirements for credible carbon certificates — from quantification to permanence and sustainability.
Anforderungen unter ICROA
Emissionsreduktion: Basis konventionelles Gebäude mit Stahlbeton und Stahl
Kohlenstoffentfernung: Basis mit regionsspezifischer Verfallsfunktion für Holzprodukte (HWP)
3-Stufen-Prozess: 1) Entspricht das Projekt den aktuellen Bauvorschriften 2) Nachweis einer Investitionsbarriere 3) Keine Business-as-usual-Projekte.
Kohlenstoffspeicherpotential des Gebäudes gegen 100-Jahres-Basis berechnet: Zertifizierung nur der langlebigsten Elemente (tragende Struktur). Fokus auf Elemente, die zurückgewonnen und wiederverwendet werden können.
Ausschluss von Doppelzählungen: Anwendung einer Verfallsfunktion für Holzprodukte
Verschiedene Co-Benefits entsprechend der SDGs: Kreislaufwirtschaftsmodelle, Smart Cities, geringerer Energieverbrauch, Nutzung von Forstprodukten, Unterstützung nachhaltiger Waldwirtschaft, ...
Source: Timber Finance graphic, based on ICROA requirements.
For Developers
Certify your building project and benefit from additional revenue streams.
For Forest Owners
Enhance your forest’s climate performance and earn additional income.
