Timber construction as a negative emissions technology

The United Nations recognises timber construction

Over the next 20 years, up to 60 percent of the global building stock will have to be refurbished or rebuilt, while construction accounts for around 40 percent of CO₂ emissions. Governments in Switzerland, Europe and the Americas are supporting timber construction through regulatory change, and technical innovation makes timber skyscrapers and motorway bridges possible. In July 2022, the United Nations officially recognised «Timber in Construction» as a carbon removal approach for the first time under the UNFCCC. Timber from sustainably managed forests used in buildings therefore has a double climate value: the forest removes CO₂ from the atmosphere, and the timber replaces emission-intensive materials.

Scaling timber construction takes more than credits, however.

Credits and investment

Since 2021, the Timber Finance Initiative had been developing the methodological basis for tradeable carbon credits for timber buildings. The authors expected a market launch in 2023 and a voluntary carbon market worth around 30 billion US dollars by 2030. In Switzerland alone, around 1 million cubic metres of additional timber could be used in construction every year without reducing forest area, adding a climate potential of 1 million tonnes of CO₂ removed per year. At the same time, the timber industry would have to modernise and needs billions in investment, for example through timber funds, timber construction mortgages or specialised real estate funds.

How Timber Carbon sees it

The article describes the starting point of today's methodology. The pilot phase began in February 2024, as the Lignum news item shows. 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 Technology page explains the current standard.