Energy Minister Tim Hodgson Announces Forestry Sector Measures Amid Trade Pressures
Canada's Energy and Natural Resources Minister Tim Hodgson announced a $500 million initiative to support and transform the forestry sector amid U.S. trade pressures, focusing on innovation, Indigenous participation, and new markets.
In a significant announcement on February 25, 2026, Canada's Energy and Natural Resources Minister, Tim Hodgson, unveiled a comprehensive package aimed at revitalizing the country's forestry sector. The announcement, made in Tracyville, New Brunswick, introduces a $500 million national call for proposals, designed to support innovation and transformation in the face of ongoing trade pressures from the United States.
The funding will span four key programs:
-
Investments in Forest Industry Transformation (IFIT): Promoting technological advancement and diversification.
-
Green Construction Through Wood (GCWood): Encouraging the use of domestic wood in construction projects, supporting Canada's green building objectives.
-
Indigenous Forestry Initiative (IFI): Aiding Indigenous participation and collaboration in forestry-related businesses.
-
Global Forest Leadership Program (GloFor): Developing new markets and leadership in forestry practices.
Alongside this national initiative, Minister Hodgson announced $2.8 million in immediate funding earmarked for seven projects across New Brunswick and Nova Scotia. This funding will focus on mass timber expansion, Indigenous and business support, value-added manufacturing, and export diversification, signaling a robust commitment to the region.
These new measures build on a series of previous actions aimed at bolstering the sector, including steps taken by Prime Minister Mark Carney in August 2025 and a specific announcement in November 2025 concerning steel and lumber protections.
The forestry sector remains a critical component of Canada's economy, supporting close to 200,000 jobs, including over 11,000 Indigenous positions, and contributing more than $20 billion to the national GDP. In the Maritimes alone, the industry drives nearly 19,000 jobs and adds an estimated $2 billion to the regional GDP.
Minister Hodgson highlighted the importance of these initiatives in protecting jobs, modernizing the industry, and reinforcing policies such as Buy Canadian and Build Canada Homes. This strategic investment underscores Canada's commitment to sustaining and enhancing its forestry sector in a globally competitive market.