Wood harvesting is responsible for roughly 10 percent of global carbon dioxide (CO2) emissions, according to a study published in 2023 by the World Resources Institute in the journal Nature. The study found that research publications and government policies have vastly undercounted the industry’s greenhouse gas emissions.

According to the paper, The Carbon Costs of Global Wood Harvests, current emissions from wood harvests are higher than previously estimated, amounting to approximately 3.5 to 4.2 gigatons (Gt) of CO2 per year—more than three times the annual emissions produced by the aviation sector. Additionally, worldwide demand for wood is predicted to grow 54 percent from 2010 to 2050. Driven by this rising global demand, emissions are projected to increase by roughly one-third, reaching about 5 Gt annually by midcentury. 

To offset the climate-related costs of the wood industry, a company called Cambium Carbon is betting on a powerful solution called Carbon Smart Wood. Carbon Smart Wood is essentially unused wood that would enter the waste stream due to disease, decay, disaster, or development (what Cambium dubs the “four Ds”). Instead of being sent to landfills, Cambium salvages the wood and upcycles it so it can once again enter the supply chain as a high-quality material ready for the market. To rescue valuable wood before it’s permanently lost, the company works with local arborists and millers to track down and recover it. 

According to Cambium’s website, every piece of Carbon Smart Wood is managed and monitored with cutting-edge technology from log to final sale through the Traece app. A unique barcode is attached to the end of each log, which shows the tree species, when it was fallen, and its grade. Because Cambium collaborates with local actors to rescue wood before it is discarded, Carbon Smart Wood is a net carbon sink. 

Its impact is substantial. In contrast to other materials, one cubic meter of Carbon Smart Wood prevents the equivalent of 56 kilograms of CO2 emissions. The sustainable solution emits seven times less CO2 than wood-polymer composites and, if scaled, could slash global emissions by four percent. So far, Cambium has saved 3.4 million board feet of wood from becoming waste. 

“We make it really easy to source wood that would have otherwise been wasted and we build technology for the wood industry so that we can save material, create new local jobs and address climate change at scale,” CEO Ben Christensen told CNBC.

While the exact costs of Carbon Smart Wood depend on the type used (there are eight), an increased demand for sustainable, affordable, and traceable building materials is leading more companies to incorporate Cambium’s products into their supply chain. The carbon-negative material is ideal for brands showcasing their commitment to sustainability.

“Cambium has identified a critical need to modernize the wood industry, from forestry to construction, by improving supply chain efficiency and using technology to create access to cost-efficient sustainable materials,” said Kareem Dabbagh, Co-Founder and Managing Partner at VoLo Earth Ventures, in a press release. “By producing high-quality, lower carbon Carbon Smart™ Wood and creating a more connected supply network, Cambium is solving key challenges in the industry. Our investment reflects our strong belief in their vision, their team, and the value they bring to the construction and design markets.”

To date, the startup has raised $28.5 million in funding. Some of its lead investors include Alumni Ventures, MaC Venture Capital, and New Enterprise Associates. 

In March, the Baltimore-based startup landed $18.5 million in a Series A funding round led by VoLo Earth Ventures. The funds will be used to scale its AI-powered tree management platform, grow staff, and introduce new timber products, per a company press release. 

Innovative companies like Cambium Carbon are helping the forest products industry reduce its emissions by giving unused lumber a second life. Carbon Smart Wood offers a powerful alternative for brands committed to responsible wood sourcing.

The views and opinions expressed are those of the author’s and do not necessarily reflect the official policy or position of C3.