As we strive towards ambitious net-zero targets, decarbonizing investments is becoming increasingly important. The forest and timber sector is at the forefront of this effort, as it is the only established industry capable of not only capturing CO₂, but also storing it long-term. This unique capability makes the forestry and timber industry a crucial player in sustainable finance, gaining increasing importance in the construction and financial sector.
In April, we celebrated the first anniversary of the "Timber Finance Forest-Based Construction Basket." This innovative investment product focuses on the carbon stored in durable wood products and invests in publicly traded companies from Europe and North America that are involved in the carbon-storing timber construction value chain.
Learn more about the performance of our tracker certificate and the successful launch of the pilot phase for timber construction carbon removal credits. Discover the latest developments and new members of the Timber Finance Initiative, and find out what Frank Vasek envisions for the future of the economy.
Erik Reichmuth, Managing Director, Timber Finance
FINANCE SOLUTIONS
Timber Finance Forest-Based Construction Basket
Since its launch, the tracker has achieved a solid one-year performance.
Start of the pilot phase for carbon removal credits in timber construction
The pilot phase has successfully launched with 20 selected innovative timber construction projects and half a dozen Swiss forestry districts. Carbon removal credits add additional value to construction projects, with part of the proceeds flowing into forestry districts for sustainable, climate-relevant forest management.
Developers are continuously invited to submit their timber construction projects from the DACH region for the upcoming phase of the carbon project. >>> All about the project
Timber construction project Naturhüs
The real estate project Naturhüs, featuring 10 spacious apartments in the economically booming region of Upper Valais, is a standout in sustainable construction as a solid timber building. It is constructed using locally sourced and processed wood, which stores 900 tons of CO2 and can be regrown in Swiss forests in just 77 minutes. Additionally, 95% of the materials can be recycled, in line with the principles of the circular economy. The project combines traditional Valais wood craftsmanship with modern technologies. The approved project is now entering the investor market.
As part of the pilot project, forestry districts from across Switzerland are participating in climate-optimized management of 15,000 hectares of forest areas. The goal is to enhance carbon absorption and the ecosystem services provided by the forests. The annual timber harvest potential is to be optimally managed so that the timber is prioritized for construction, allowing the stored carbon to be bound long-term, thus making a significant contribution to climate protection. >>> Learn more
STUDIES & RESEARCH
Quarterly results: Here you will find a summary of the quarterly results of companies from the Timber Investment Universe, including highlights from the management's presentation of the results and analysts' interpretation.
Construction activity update: Learn more about current construction activity, short-term challenges, and long-term potentials in key construction markets in the USA, Germany, the UK, and Ireland.
In addition to the "Timber Finance Forest-Based Construction Basket," there are a few other "Timber" financial products on the market. However, most of these are primarily invested in the short-lived forest products, such as paper and packaging, rather than carbon-storing durable wood products.
COMPANY & TEAM
Frank Vasek bei 3,2,1 Zukunft!
Currently, around 40% of global carbon emissions originate from the construction industry, primarily due to the use of carbon intensive materials such as concrete and steel. A bio-based and renewable alternative is timber. For this to become more prevalent, sustainable forestry and a healthy timber industry are essential, which in turn require capital.
Discover what Frank Vasek, Head of Carbon Solutions, envisions for the economy of tomorrow in the video.
In our latest member profile, we talk with Rainer Strauch, Managing Director of CREE Buildings. Learn about what inspired Mr. Strauch to pursue sustainable construction, how CREE is revolutionizing the construction industry, and the role of digitalization in this process. Get inspired by an outstanding project in Berlin and discover the challenges faced by the industry.
We are pleased to welcome DM BAU and MVPR as new members of the Timber Finance Initiative.
DMBAU AG is a renowned company in the field of building construction and general contracting, based in Oberriet SG. With their expertise in executing complex construction projects and their commitment to sustainable building, DMBAU will enrich our network and contribute to the promotion of innovative construction projects.
MVPR Performance Real Estate Inc. from Canada is a leading company in sustainable architecture and project development. With their extensive expertise in planning and implementing sustainable projects, MVPR expands our network to Canada.
Become a member :
Learn about the benefits for our members and apply for your membershiphere.
Annual general meeting 2024:
It was our pleasure to hold the 2nd Annual General Meeting of the Timber Finance Initiative on May 15th. >>> Learn more
