Adjustments in the third quarter of 2025: Timber Finance Carbon Capture & Storage Index

A historic gap with equity markets

From the end of March to the end of September 2025, the index lost 4.95 percent, after minus 13.5 percent in the previous period. Over one year, the companies in the index lost 19.37 percent, while the MSCI All Country World gained 16.87 percent. Reichmuth points to building permits close to historic lows, new US tariffs and highly volatile lumber prices. For the Canadian companies in the index, combined duty rates rise from 14.54 percent to between 26.5 and 47.65 percent.

In the rebalancing, Cham Swiss Properties was added with a weight of 2.86 percent following the merger of Ina Invest and Cham Group. Ponsse left the index because it did not meet the liquidity criteria. Against the trend, construction and mass timber gained 12.6 percent on average.

Despite the current weakness of listed timber construction companies, the long-term growth drivers of the timber industry remain in place.

Regulation as a tailwind

According to the article, the US is short of 4.7 million homes and the EU of 9.6 million. At the same time, several countries regulate the carbon footprint of new buildings, and the EU buildings directive will require a life-cycle carbon assessment for all new buildings from 2030. In Switzerland, the MuKEn 2025 model regulations introduce limits on embodied energy from 2026. ETS II and the EU carbon border adjustment also make steel and cement more expensive.

How Timber Carbon sees it

Reichmuth refers to the EU CRCF framework, which recognises the carbon removals achieved with timber-based building products. Timber Carbon, launched in 2026 as a spin-off of Timber Finance, now brings these removals to the voluntary carbon market as carbon removal credits. Our technology page explains how it works.