Decarbonization of portfolios with timber

Dear Sir or Madame

After two years of development, the moment has finally arrived: the Concept Note for timber-based carbon removal credits has been approved by an ICROA Carbon Standard.

This breakthrough enables real estate investors worldwide to receive carbon credits for their climate-positive efforts in building with timber, creating a financial incentive to use sustainable building materials. This marks a significant milestone for the timber and real estate industry.

Timber construction projects are invited to participate in the pilot phase, with submissions accepted until the end of April.

There's also notable news in the finance business segment: since September 2023, Timber Finance is regulated by Swiss Financial Market Supervisory Authority FINMA as a wealth manager. >>> more

Additionally, listed timber equities continued to perform with the Timber Finance Tracker Certificate achieving a return of +3.7% in 2023 (refer to the chart below). The certificate remains a compelling option for investors seeking to decarbonize their portfolios.

We hope you enjoy reading the latest news.

Frank Vasek, Head of Carbon Solutions, Timber Finance

FINANCE SOLUTIONS

Index Performance 2023

Despite the challenging economic situation in Europe and the strength of the Swiss franc, the Timber Finance Carbon & Storage Index (ISIN DE000SL0ECH7) – the world's first index focusing on the CO2 storage capabilities of the entire forest to frame value chain – recorded a performance of 13.84% in 2023. American manufacturers and distributors of wood-based materials were the main performance drivers. Integrated Nordic and American forest owners also contributed to the positive result, with robust log prices in Northern Europe continuing to provide support following the Russian import restrictions. >>> read the analysis

CARBON SOLUTIONS

After receiving approval of the Concept Note, we have launched the Pilot Phase. Property developers can enter their timber construction projects here. This is the world's first carbon project aimed at monetizing the CO2 stored in timber buildings. In addition to receiving access to carbon credits, participants can look forward to gaining valuable experience for future submissions.

You can view further project details in the webinar recording from February 8, 2024, and the accompanying presentation.

EU certification system for carbon storage technologies
Timber Finance aligns with the EU Commission’s decision from February 2024 to develop a certification framework for carbon storage technologies. This decision coincides with the start of our pilot phase, and we are grateful to have been involved in the Commission's discussions as industry experts.

STUDIES & RESEARCH

Timber Construction Mortgage: A Feasibility Study was carried out in cooperation with the ZHAW (Prof. Dr. Thomas Richter). Thanks to valuable feedback from several financial institutions, the concept will be further refined and developed in the coming months.

DeCirra: Timber Finance is an implementation partner of Decarbonization of Cities and Regions with Renewable Gases (DeCirra) and is responsible for the TCCS (Timber Carbon Capture & Storage) and biochar (PyCCS) departments. DeCirra investigates how cities can be decarbonized and how local resources can be optimally used.

>>> Interim Report

Timber Sector Fundamentals: A new business report from our "Sector Fundamentals" series on U.S. Homebuilders has been published. >>> to the report

Company Results: The Q4 2023 company results from the Timber Finance universe have been published with management comments on carbon monetization strategies. >>> to the report

White Paper: Learn how timber investments have evolved from traditional Timberland investments to the timber construction industry and the sustainable returns they can offer.

>>> White paper on modern timber investments

CHART OF THE DAY

Chart: Carbon storage technologies recognized worldwide by science (IPCC), politics and business (McKinsey), with timber construction in first place (source: IPCC)

COMPANY & TEAM

Our Team
The Timber Finance team continues to grow.

>>> Get to know us

Does building with timber save the climate?
Stefan Zöllig, President of Timber Finance, is at the forefront and reports on the pioneering timber construction project «House without heating» in the NZZ-Format on Swiss television SRF.

Investing in the timber industry is a growing trend and sustainable
In the interview with “20 Minuten”, Erik Reichmuth, Managing Director of Timber Finance, explains why timber is an exciting building material and how money can be invested sustainably in the forest and timber industry.

ASSOCIATION & MEMBERS

Timber Finance member portrait: OPENLY
Serial-entrepreneur Andy Keel, whose heart beats for innovation and design, is fully committed to the net-zero mission. With Europe's largest hemp house in Widnau SG, OPENLY has created numerous innovations. You can find out which of these is the most impressive in the short interview.

Members' event: Tour of first residential building with wooden cellar – Thun
Together with Timbase, we are pleased to have invited our members and partners to discover the innovative residential building of the future with a wooden basement and no heating in Thun. >>> more

EN Besichtigung erstes Wohnhaus mit Holzkeller - short-1-1

Annual General Meeting: Our annual association meeting will take place on 15.05.2024 from 4-6 pm. We will inform our members in a separate letter.

Become a member: Find out here about the benefits for our members and apply for membership.

AGENDA

◼️ 13.3.2024 Speech at the 11th Pension Conference Switzerland

"Decarbonization of portfolios and real estate with timber"

◼️ 30.4.2024 Submission deadline: Pilot phase carbon removal credits

◼️ 15.5.2024 Annual Association Meeting Timber Finance Initiative