The timber industry and timber buildings could become very attractive for the financial market

Finance as the missing link

According to Fedrizzi, listed timber companies are rare and often focus on pulp, whose short-lived products hold little carbon. Zöllig, a timber engineer and co-owner of Timbatec Holzbauingenieure AG, is convinced that advances in timber construction and legislation alone are not enough. Institutional investors such as pension funds are needed for their financial clout. Since neither cantonal nor private banks would take on the task, the two founded Timber Finance. The company supports timber businesses in raising capital, for example through subordinated loans, and launched the Timber Finance Forest-based Construction Basket of 23 timber construction companies with a major cantonal bank.

I am convinced that we could build 80, perhaps even 90 percent of all buildings in Switzerland with domestic timber and contribute a great deal to climate protection with the carbon held in the timber. (Stefan Zöllig)

Carbon removal credits for timber construction

Since 2022, Timber Finance had been developing a carbon methodology for timber construction under the ICROA standard, with recognition expected in the fourth quarter of 2024. In parallel, the methodology was adapted to Swiss conditions, and the first pilot projects were to be certified from 2025. Real estate investors would thus be able to generate carbon removal credits from their core business and sell them or count them towards their own carbon balance. Developers were invited to register their projects for certification.

How Timber Carbon sees it

The article reflects the situation in 2024. 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. Our portfolio shows the buildings involved.