Adjustments in the third quarter of 2026: rebalancing of the Timber Finance Carbon Capture & Storage Index

Timber stocks lag behind equity markets

Between the end of March and the end of September 2026, the index lost 1.31 percent in US dollars, falling from 1,912.04 to around 1,886.93 points. Over the same period, the S&P 500 rose by around 20.6 percent and the EURO STOXX 50 by around 13.1 percent. Reichmuth points to weak construction activity, volatile lumber prices, higher energy and transport costs and the ongoing trade dispute between the US and Canada.

Performance varied widely within the sector. Interfor gained 40.86 percent and BlueLinx 31.28 percent, while Mercer International lost 78.14 percent. By sector, primary products rose by 20.2 percent, whereas construction and mass timber fell by 20.4 percent.

Despite the difficult short-term conditions, the structural drivers of the timber industry remain intact.

What the rebalancing changes

On 1 October 2026, Acadian Timber and UBM Development were removed from the index because their daily trading volume was below 100,000 US dollars. Secondary products remain the largest segment at 42.5 percent. The US share rises from 37.4 to 40 percent, while Canada's falls from 25.8 to 22.5 percent. The next regular adjustment follows at the end of March 2027.

How Timber Carbon sees it

Reichmuth sees decarbonisation and the growing recognition of the carbon removed with timber as long-term drivers. The index is run by Timber Finance, from which Timber Carbon was spun off in 2026. Timber Carbon works at the level of the individual building: we quantify, certify and monetise the carbon removed in mass timber buildings and bring it to the voluntary carbon market as carbon removal credits. Our technology page explains how it works.