“The construction and finance sectors need to work more closely together”

Life cycle, beyond operational energy

Many investors associate sustainable real estate with energy efficiency in operation. Fedrizzi considers this too narrow, which is why some investors base decisions on full life-cycle assessments, driven by rules on embodied carbon in countries such as Denmark, Sweden and France. Richter cites studies showing that sustainable buildings have lower operating costs, fewer vacancies and higher rents. Labels such as GEAK and Minergie, however, focus mainly on operation. According to Fedrizzi, life-cycle concepts only become “bankable” once they are linked to a tradable security.

A mortgage backed by carbon removal credits

On behalf of Timber Finance, ZHAW carried out a feasibility study on a timber construction mortgage that offers interest discounts for installed timber. Investors can count the carbon removal credits towards their carbon balance or sell them on the market. Because private owners have no direct market access, banks could take over the credits in return for a lower mortgage rate and account for them in bulk. The bank representatives surveyed consider such a product marketable but want simple processes and a clear framework. The expected price for timber construction credits is put at around CHF 150 per tonne of CO₂.

Anyone who builds with timber delivers a climate service to society that is not financially rewarded.

How Timber Carbon sees it

How to reward the climate performance of timber buildings is at the heart of our work. 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 Build biobased page explains how developers can get started.