The forest sector is a cornerstone of Canada’s economy, providing vital jobs and supporting communities nationwide. Facing challenges from U.S. trade measures, the Government of Canada is taking decisive action to protect workers, stabilize businesses, and enable the sector to modernize and diversify for long-term growth. Measures announced in August 2025, including the creation of the Canadian Forest Sector Transformation Task Force, aim to unlock the full potential of the industry as federal housing and infrastructure initiatives expand domestic demand.

On 25 February 2026, Minister of Energy and Natural Resources, Tim Hodgson, launched a national Calls for Proposals under Natural Resources Canada’s forest sector transformation programs, backed by a $500-million commitment. These programs—including the Investments in Forest Industry Transformation (IFIT), Green Construction Through Wood (GCWood), Indigenous Forestry Initiative (IFI), and Global Forest Leadership Program (GloFor)—are designed to help Canadian companies innovate, diversify production, increase domestic wood use in construction, support Indigenous participation, and access new domestic and international markets.

Alongside the $500 million initiative, $2.8 million in existing program funding was allocated to seven projects in New Brunswick and Nova Scotia. These projects focus on expanding mass timber construction, enhancing Indigenous group participation, increasing manufacturing capacity for value-added wood products, and diversifying forest product export markets. They exemplify the type of transformative, innovation-driven projects the renewed forest sector programs aim to promote.

By supporting current workers, modernizing the industry, and helping companies reach new markets, the Government of Canada is reinforcing the forest sector as a pillar of national strength and economic resilience. The sector currently supports nearly 200,000 workers—including over 11,000 Indigenous employees—and contributes more than $20 billion annually to Canada’s GDP, with the Maritime provinces alone accounting for nearly 19,000 jobs and $2 billion in regional GDP.

To make federal support more accessible, Natural Resources Canada has also launched a single-window pathfinding service, providing a central website and direct access to experts to help forest sector businesses and employees navigate and apply for programs efficiently. This initiative underscores Canada’s commitment to building a modern, competitive, and sustainable forest sector that drives long-term economic growth.

Source: news.fundsforngos.org