Canada Announces New Funding for Forest Sector Transformation and Projects
On Wednesday, Natural Resources Canada announced an additional CA$400 million through Canada’s Regional Development Agencies to support the transformation of the forest sector, including $300 million under the Regional Tariff Response Initiative and a new $100-million Regional Development Fund.
The federal government also announced nearly $130 million in funding for 56 projects across Canada. The projects will support low-carbon wood technologies, mass timber construction, Indigenous participation, value-added wood manufacturing, and export-market diversification.
In addition, the Business Development Bank of Canada (BDC) will enhance its Softwood Lumber Loan Guarantee Program with higher maximum loan amounts and expanded letters of credit. BDC will also introduce two new direct-loan programs for eligible forest-sector companies, including harvesting and pulp-and-paper operations.
The funding announcements accompanied the release of the Canadian Forest Sector Transformation Task Force’s final report. The report outlines recommendations to stabilize the sector, modernize operations, attract private investment, expand wood use in construction, increase production of value-added products, and diversify export markets.
Federal, provincial, and territorial ministers meeting this week at the Canadian Council of Forest Ministers will discuss the recommendations as Ottawa prepares an Action Plan that will form the foundation of Canada’s upcoming Forest Sector Strategy.
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