Timber Carbon launches platform to monetise carbon storage in real estate

Based in Zurich, the company has announced the launch of an infrastructure platform that uses artificial intelligence (AI) to monitor, certify and monetise the long-term storage of carbon dioxide in buildings constructed with bio-based materials, primarily timber.

The central innovation lies in converting stored carbon into a tradable asset, potentially creating an additional revenue stream for developers, investors and property owners.

From Construction Material to Carbon Market

Timber sourced from sustainably managed forests stores carbon absorbed from the atmosphere as trees grow. When used in long-lasting buildings, a proportion of this carbon remains locked away for decades.

Until now, however, this environmental benefit has been difficult to translate into a direct financial return for real estate investors.

Timber Carbon aims to address this gap through a digital infrastructure that records and monitors the amount of carbon stored in construction materials, with the objective of enabling its certification and commercialisation in carbon dioxide removal (CDR) markets.

The ability to trade certified carbon units could change the economics of timber construction by introducing an additional revenue stream into investment appraisals.

The actual value of these units will depend on their certification, the duration of carbon storage and market acceptance. The use of timber does not automatically generate tradable carbon removal credits.

Portfolio of 90 Buildings Stores 72,000 Tonnes of CO₂

According to the company, Timber Carbon has already assembled a portfolio of more than 90 buildings containing approximately 72,000 tonnes of stored carbon dioxide.

The company describes this as the world’s largest portfolio of carbon removal through bio-based construction materials in the building sector.

Its AI-powered infrastructure enables the long-term monitoring of stored carbon, supporting data management and the documentation of buildings’ environmental performance.

The initiative comes at a time when the European real estate sector faces increasing pressure to reduce emissions associated not only with building operations but also with the production of construction materials.

Targeting a Doubling of Bio-Based Construction

According to figures cited by Timber Carbon, the building sector accounts for approximately 36% of global carbon dioxide emissions, with a significant proportion associated with construction materials.

The company believes that assigning a financial value to stored carbon could encourage the wider adoption of timber and other bio-based materials.

Its ambition is to help double the share of new investment properties constructed using such materials over the next decade.

According to the company, this share currently ranges from 0.5% to 10%, depending on the country.

“Until now, the climate performance of timber buildings has been economically invisible. Once it is certified and can be traded, the conversation with developers changes,” said Valentin Wiesner, Chief Executive Officer of WIEHAG Timber Construction.

He argued that this possibility could influence investors’ decisions from the earliest stages of selecting construction materials, potentially strengthening the financial case for timber-based development.