Timber construction as an investment opportunity

Timber as an investment alternative

The PACTA climate test lists steel and cement among the six emission-intensive sectors. Both belong to the construction industry, which is responsible for almost 40 percent of global CO₂ emissions. Timber has a far better carbon balance as a building material. According to the 2023 guide “Moderne Holzinvestments” by Timber Finance, ZHAW and the Liechtenstein Bankers Association, timber stocks have historically shown an equal or better risk-return profile than steel or cement stocks. Structural timber removes CO₂ from the atmosphere in the forest, keeps it in the load-bearing structure and replaces emission-intensive components. Fedrizzi also notes that timber stocks are still fairly valued because of the slump in construction.

Direct investments and carbon removal credits

Alongside listed stocks, the article points to direct investments in the Swiss timber chain, such as the capital increase then under way at Holzvermarktung Graubünden AG. Fedrizzi estimates the investment volume of the Swiss forestry and timber sector at around CHF 1 billion by 2030, to bring around one million additional cubic metres of timber a year from under-managed forests into buildings. This is to be based on carbon removal credits, which were due to come to market after the pilot phase in 2025. Developers can then generate credits from their core business. The sector is also considering a timber construction mortgage.

A new asset for the real estate sector and one more reason to build in timber.

How Timber Carbon sees it

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 portfolio shows the buildings involved.