Decarbonisation of buildings possible through timber construction
The Zurich-based PropTech start-up Timber Finance enables building owners and investors in the building sector to monetise their climate performance in timber construction through CO₂ storage certificates for the first time. This innovation contributes to decarbonisation and is recognised by international organisations.
The building sector is responsible for 37% of CO₂ emissions worldwide. The use of structural timber not only replaces CO₂-intensive building materials such as steel or concrete, but can also permanently store carbon. Timber construction projects therefore have a double climate impact. Since 2022, timber construction has been recognised as a carbon sink by international organisations such as the UNFCCC and the EU. Timber Finance developed a methodology for the first time that makes it possible to certify the CO₂ storage value of such projects and make it tradable.
Switzerland as a pioneer in timber engineering
In a pilot phase, Timber Finance is adapting this international methodology to Swiss conditions. Around 20 innovative timber construction projects and several forest districts are taking part in order to monetise their CO₂ storage services. The aim is to incentivise building owners and forest managers to focus more on sustainable timber construction and climate-friendly forest management.
CO₂ storage certificates: tradable and value-enhancing
The CO₂ storage certificates offer builders and investors new opportunities to monetise their climate performance. They can either be traded on the CO₂ market (offsetting) or used directly to reduce their own CO₂ footprint (insetting). Timber Finance, supported by the Migros Pioneer Fund, has thus created a valuable instrument for decarbonising the building sector.
Showcase project for sustainable construction
One outstanding example is the Pünt new-build project in the municipality of Egg in the canton of Zurich. By using certified wood, 1,462 tonnes of CO₂ are saved in the supporting structure, and a further 508 tonnes of CO₂ emissions are avoided. This project shows how timber construction combines economic and climate-friendly benefits as a sustainable construction method.
Sustainable forest management for climate protection
Swiss forest districts are also part of the pilot phase and manage around 15,000 hectares of forest in a climate-friendly way. The aim is to maximise CO₂ absorption and use the wood in such a way that the carbon remains sequestered in the long term. This makes a decisive contribution to climate protection and opens up new financial prospects for the forestry industry.
Timber construction as the key to CO₂ reduction in the building sector
The introduction of CO₂ storage certificates makes timber construction an important instrument for decarbonisation. Switzerland is leading the way here with innovative projects and demonstrating how climate-friendly construction can be combined with economic benefits.