Timber is good business!
ZeroCarbonFund is here! By responsibly monetising the positive effects wood has on the climate, we generate large scale financial incentives to build with wood by:
- Connecting timber ecosystem in an effective value chain;
- Creating green, durable and high yielding funding propositions;
- Running a transaction model that connects new funds with the financial needs and revenues of the value chain.
Let’s save the planet by building for our next generation and make a good business! Let us join forces to enable this timber transition.
1. Creating stable markets by responsibly monetising carbon reduction
Timber as we know it, has long been thought of as being a more expensive material than its carbon-intensive alternatives. Momentum and support exist in the building sector through multiple initiatives to push forward the application of this net-zero building material. A recent study by Laudes Foundation has found out that- Timber construction can be speeded up if and when:
1. The carbon credits are accounted in the value case for timber construction and generated by adding reduction (through forestry and substitution) and storage effects to the equation.
2. The value of a standard amount of carbon can be raised by added value like exposure and marketing.
3. There is a market and or organizational structure that let all parties interact effectively.
4. There is a proof-of-concept/showcase for a situation in which all conditions above are met.
TIMBER OFFERS A LUCRATIVE SOLUTION TO THE DUAL CRISES WE DEAL WITH- HOUSING AND CLIMATE.
To further improve and implement these conditions several public parties (provinces and ministries) are taking part in regional pilots. These pilots are showcases for effective regional timber markets.
2. Connecting businesses
Reducing carbon by using timber is based on an integrated value chain of specialised businesses. From foresters that provide the wood, through timber companies that create building materials, to builders and developers that sell carbon friendly buildings.
ZeroCarbonFund connects these businesses and sets up effective value chains regionally, nationally and possibly even European. To understand the specific needs to run these value chains smoothly we have set out regional pilots to test it in practice.
3. Green and high yielding funding opportunities
The Laudes Study shows that there’s a case to be made for (high) yielding and low-risk investments in timber. Financial returns should be comparable to traditional real estate development while having a positive environmental effect.
Based on the financial needs and revenues from the businesses in the value chain we will create investment propositions that meet the market standards.
4. Running a smooth transaction model
ZeroCarbonFund will run on an intelligent transaction model that provides all parties involved the services they need. It’s the heart of the operation that connects the needs and outcomes of the value chain parties with the monetising and certificating bodies and governments and creates funding opportunities for investors.
With several financial parties we are in a process of business development to make the transaction model viable and attractive for all parties involved.