The future of timber investments

What investors are looking for

43 investors took part in the survey. The results are not representative. Still, the trend is clear: listed investments are in highest demand. The sector itself, however, is dominated by SMEs. There is strong interest in new approaches such as carbon removal credits. In ESG-focused strategies, forestry and timber is weighted slightly above average, and its role is even greater in sustainable solutions, as timber is seen as a climate-friendly building material that keeps removed carbon out of the atmosphere for the long term.

The results of both studies point to a fundamental matching problem.

Three hurdles between capital and the sector

A 2026 study finds a considerable financing need in the sector that is often difficult to meet. The authors name three reasons:

• Investors prefer investment types that are a poor fit for the financing needs of mid-sized companies.
• There is a lack of ESG reporting that delivers the metrics investors need.
• Investors know little about the structures of the sector.

They see a need for practical ESG reporting for SMEs, suitable forms of financing and standardised methods for monetising carbon removals that can be integrated into valuation tools.

How Timber Carbon sees it

The last point is where Timber Carbon, launched in 2026 as a spin-off of Timber Finance, comes in. We quantify, certify and monetise the carbon removed in mass timber buildings under a recognised methodology and bring it to the voluntary carbon market as verified carbon removal credits. Learn more on our buy credits page.