Timber Finance, in collaboration with the Zurich University of Applied Sciences as its research partner, has published the White Paper “Investing in the Modern Forest and Timber Construction Industry”, a research paper analyzing both sustainability and financial characteristics of the timber value chain and the timber investment landscape with a focus on the built environment and the construction sector. The study was co-funded by Built by Nature and the Migros Pioneers Fund and supported by the Liechtenstein Bankers Association.

The white paper reviews and builds on the academic literature addressing the climate benefits provided by timber, especially carbon sequestration, carbon storage and product substitution effects. The economic, financial and sustainability characteristics of different timber-related investment product categories are analyzed in order to provide a structured framework for different timber investments.

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The webinar will bring together leading experts from academia, the timber industry, and financial markets. They will present the White Paper’s key findings on sustainability, value creation, investment profiles and financial products and create a framework for systematic and climate relevant investments in the timber sector. The active exchange about the role of timber in the decarbonization of the construction and finance sectors, will enhance participants’ ability to make informed investment decisions.

Program & Inscription

The timber construction megatrend opens up attractive investment opportunities for investors. Timber Finance is developing new financial instruments and products which enable investors access to diversified investments along the entire forest-to-frame timber construction value chain.

With the Tracker Certificate on the Timber Finance Forest-based Construction Basket, investors can - for the first time - invest in a basket of 20 leading listed companies from the forest and timber industry.

The tracker is listed on the SIX Swiss Exchange (symbol TIMBRZ, Valor 123576365), orders for investors domiciled in Switzerland are accepted by any bank. 

The tracker certificate is based on the Timber Finance Carbon Capture & Storage Index, which was developed as the world's first Timber Index with a clear focus on the long-term storage of CO2 in durable wood products used in construction (ISIN DE000SL0ECH7). The chart below shows the good performance of the index.

Timber construction: a recognized negative emission technology 

The EU and UN are in the process of developing industrial CO2 storage (carbon removal) methodologies. A distinction is made between nature-based and industrial CO2 storage solutions. In addition to Direct Air Capture, bioenergy and biochar, wood products are also officially recognized as "wood-based construction". Timber Finance contributes to expert panels and public consultations. The chart below (IPCC 2018) shows the costs and potentials of the different CO2 storage solutions:

Timber Finance is at the forefront as a leading CO2 methodology developer for timber buildings and working with partners to gain recognition for the climate performance of timber construction in combination with sustainable forest management. In addition to developing an ICROA methodology, Timber Finance supports the UN by participating in public consultations and workshops to recognize timber construction as a carbon removal. 

Current developments in carbon markets are very dynamic. New climate standards for carbon storage solutions are being launched regularly.  Last year, prices reached up to CHF 200 per metric ton of CO2 equivalent. Most carbon storage certificates are sold out until 2030.

In the coming months, Timber Finance plans to launch the pilot phase for the certification of the first timber construction and forest projects. Builders are invited to participate in the pilot phase with their timber construction projects here.

Timber Sector Fundamentals Series: a new report on Secondary Timber Products (#3) has been published, covering listed companies involved in the manufacturing and distribution of specialty lumber and engineered wood products. This series of reports provides an overview of the listed timber sector based on the different positioning of companies along the timber value chain. Previous reports: Primary Timber Products (#2) and Timberland REITs (#1).

Equity Research: a new equity research report has been published, covering the Canadian timber company Western Forest Products. Previously, research on the German wood fiber insulation specialist STEICO had been published.

Market Updates: companies reported their 2Q 2023 results in July and August and our quarterly update provides you with an overview of the results and other insights. The macroeconomic update published in July also provides an overview of the macroeconomic environment in which timber companies are currently operating in.