Field Note · Real Estate & Built Environment · Asset Economics

The building material is now a capital decision

Structural material choice can account for a third of a building's lifetime carbon footprint before a single day of operation.

June 2025

An 18-storey mass timber tower in Norway

Cement and concrete production accounts for roughly eight percent of global greenhouse gas emissions, more than any country other than the United States and China. Mass timber, principally cross-laminated and glue-laminated wood, offers a structural alternative for mid- and high-rise construction that stores carbon in the finished structure rather than releasing it during manufacture. Mjøsårnet, an 18-storey mixed use tower in Norway, demonstrates the structural case at scale: a full timber primary structure carrying residential, hotel, and office loads to 85 meters.

For institutional developers, the relevant comparison is no longer wood against concrete in the abstract. It is embodied carbon per square meter, construction schedule, and long-run maintenance cost, evaluated site by site. On projects where local timber supply chains exist, the capital case increasingly closes on its own terms, independent of any carbon premium.

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