Canada Commits CA$500 Million to Support Forest Sector Transformation

On Wednesday, Canada announced CA$500 million to support and retool the country’s forest sector, launching a national call for proposals under Natural Resources Canada’s forest sector transformation programs.

The announcement, made by Minister of Energy and Natural Resources Tim Hodgson, builds on measures introduced in August 2025, when Prime Minister Mark Carney outlined CA$1.25 billion in support for the sector. A Canadian Forest Sector Transformation Task Force also began its work in January.

Eligible businesses and organizations can now apply for funding through four programs:

1. Investments in Forest Industry Transformation (IFIT)
2. Green Construction Through Wood (GCWood)
3. Indigenous Forestry Initiative (IFI)
4. Global Forest Leadership Program (GloFor)

According to the government, the programs are designed to help companies innovate and diversify production, expand the use of Canadian wood in construction, support Indigenous participation, and open new domestic and international markets. The initiatives align with federal actions such as the Buy Canadian Policy and Build Canada Homes, which prioritize the use of Canadian wood.

In addition, Hodgson announced $2.8 million in existing program funding through the IFIT, IFI, GloFor, and GCWood programs to support seven projects in New Brunswick and Nova Scotia. The projects aim to expand the use of mass timber in construction, increase value-added manufacturing capacity, support Indigenous forestry businesses, and diversify export markets.