In its Building Blocks newsletter of 16 February 2024, the ESG Real Estate Laboratory (ESGreLab) put the spotlight on timber construction. The report by its sister company ReFinLab presents the pilot phase with which Timber Finance set out to connect timber construction to the carbon market.
Outlet
Building Blocks (ESGreLab)
Published
February 16, 2024
Soft launch in the DACH region
According to the newsletter, an officially recognised concept note was in place for the methodology. The soft launch targeted timber construction projects in Germany, Austria and Switzerland. Timber Finance invited stakeholders to share the information through their networks and developers to get in touch directly. The approach was meant to open up new sources of financing for developers.
The project aims to scale timber construction, ensuring benefits across the entire value chain.
Key details
Timber Finance offered financing contributions for timber construction projects through carbon removal credits. Compensation was 80 euros per cubic metre of timber used, around 25 euros per square metre, with property developers as the beneficiaries. All unfinished building types except single-family homes were eligible, provided the structure contained more than 300 cubic metres of timber.
How Timber Carbon sees it
The pilot phase officially started in August 2024, as summarised in our article on Moneycab. Timber Carbon, launched in 2026 as a spin-off of Timber Finance, quantifies, certifies and monetises the carbon removed in mass timber buildings as carbon removal credits on the voluntary carbon market. Our Build biobased page explains how developers can take part today.
Topics
Source
Building Blocks (ESGreLab)
Weekly LinkedIn newsletter by the ESG Real Estate Laboratory
