
Timber construction is set to grow, but how will that growth be financed? In the Finanzblog of Schweizer Holzrevue (issue 12/2024), Prof. Dr. Thomas Richter, head of the Real Estate Management & Finance unit at ZHAW, explains why ZHAW is surveying the Swiss forestry and timber industry on this question. Thomas Fedrizzi of Timber Finance adds a practical example.
Outlet
Schweizer Holzrevue
Published
December 2, 2024
Embodied carbon moves into focus
In Switzerland, the building sector causes around a quarter of greenhouse gas emissions, and emissions from construction matter more and more. Timber binds CO₂ as it grows, is available domestically and takes less energy to process than steel or concrete. Timber buildings also keep CO₂ out of the atmosphere throughout their life, which according to Richter opens up the carbon market as well as the financial market. For enough capital to flow into the sector, however, the financial industry needs to see it as a growth sector that contributes to sustainability, which is often not yet the case.
The signs point to growth and investment.
A survey and a practical example
With support from the Federal Office for the Environment under the Wood Action Plan, ZHAW is surveying the sector's financing situation to identify obstacles and develop solutions. As an example of an investment opportunity, Fedrizzi cites the capital increase then under way at Holzvermarktung Graubünden AG. Backed by more than 25 municipalities and forest districts in Graubünden, the company supplies over 50,000 cubic metres of timber a year and was opening its shareholder base to new investors for the first time.
How Timber Carbon sees it
The survey results have since been published, and we summarise them in Timber is on trend: but who is financing the growth?. 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.
Topics
Source
Schweizer Holzrevue
Swiss trade magazine for the timber industry


