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There are millions of older buildings in the colder climate regions of the world where envelope upgrades are needed to improve the indoor quality of buildings, reduce energy costs, and lower greenhouse gas (GHG) emissions. This study assessed the global warming potential (GWP) with and without accounting for CO₂ uptake in trees (biogenic carbon) for 20- and 100-year timespans of an exterior insulation panel. The panels consisted of six different materials with three-ply cross-laminated timber (CLT) as its main component. The net GWP_100-Uptake impact when explicitly accounting for biogenic CO₂ uptake over a 100-year time period was 7.2 kgCO₂-eq/m² which was 92.7% lower than if it was not included (GWP_100-Fossil of 98.7 kgCO₂-eq/m²). Using a 20-year GWP increased the impact of the GWP fossil by 21.7% and the CO₂ uptake scenario by 298%. The major contributor was the energy used for manufacturing panel’s materials (53%), with embodied carbon in bio-products primarily responsible for offsetting emissions. The findings will be helpful for policymakers in setting net-zero carbon emission goals for embodied and operational impacts of building materials.