Timber is on trend: but who is financing the growth?

Growth yes, financing uncertain

47 percent of the companies surveyed see good or very good growth prospects for the next five years. At the same time, around 40 percent expect a financing bottleneck over the same period. According to the survey, the sector still finances itself conventionally, largely through debt. Instruments such as green loans, sustainable loans or green mortgages, which companies with proven sustainability performance could benefit from, are hardly used.

Financing the sector's growth is therefore not secured.

Sustainability that stays invisible

Richter sees a possible explanation in reporting. The financial sector relies heavily on sustainability reports and certifications, but the largely SME-based timber sector rarely reports on sustainability or uses certificates. Investors and financial institutions therefore know too little about its performance. The article announces a follow-up survey of investors and lenders. It was produced with support from the Federal Office for the Environment under the Wood Action Plan.

How Timber Carbon sees it

The announced investor survey has since been published, and we summarise its results in An investor perspective on the forestry and timber sector. Verified carbon removals make part of the sustainability of timber buildings visible to investors. Timber Carbon, launched in 2026 as a spin-off of Timber Finance, brings them to the voluntary carbon market as carbon removal credits.