Initiative aims to build a market for the climate performance of timber construction

A marketplace for climate-positive buildings

Until then, investors had focused on CO₂ reduction in hardwood plantation, afforestation and forest protection projects, often in developing countries. With the net zero commitments of industrialised countries, Lignum writes, domestic investment opportunities are now opening up along the entire value chain, from forest to timber property. The Timber Finance Initiative wants to create a marketplace for this and connects the forestry and timber industry with the financial market through new CO₂ measurement methods, financial products, a knowledge hub, training and advisory services. At the time, the association was still being set up and was looking for new members.

We want to enable investment opportunities of around CHF 100 million in the forestry and timber industry by 2030.

Three priorities

The quote comes from Erik Reichmuth, Managing Director of the initiative. First, it is developing carbon removal credits for timber buildings based on international standards, designed to give institutional developers an incentive to use more timber and to reward the forest's contribution. Second, it advises banks, pension funds, investors and family offices on timber investments and supports property investors with competitions, tenders, regional timber sourcing and financing. Third, it is building an index of 30 listed timber companies from Europe and North America.

How Timber Carbon sees it

The article documents the beginnings of the initiative from which Timber Finance emerged. 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. The announced index was launched in February 2022, as the Lignum news item of March 2022 shows.