Energy Minister Tim Hodgson Announces Major Initiatives for Canada's Forestry Sector
Energy and Natural Resources Minister Tim Hodgson announced federal measures to support Canada's forestry sector, including a $500 million investment and $2.8 million for targeted projects in New Brunswick and Nova Scotia.
Energy and Natural Resources Minister Tim Hodgson has unveiled a set of ambitious measures to enhance the vitality and competitiveness of Canada's forestry sector. Announcing the new initiatives in Tracyville, New Brunswick, on February 25, 2026, Hodgson emphasized the federal government's commitment to transforming and modernizing this critical industry.
The announcement includes a national "Calls for Proposals" under Natural Resources Canada's forest sector transformation programs, backed by a substantial $500 million investment. This fund is intended to help the industry retool and innovate, focusing on boosting competitiveness and fostering economic growth through housing and infrastructure developments.
Additionally, a further $2.8 million has been earmarked for seven specific projects spread across New Brunswick and Nova Scotia. These projects will concentrate on expanding the use of mass timber in construction, supporting Indigenous groups and forestry businesses, and enhancing the manufacturing capacity for higher-value wood products, while also diversifying forest product export markets.
These announcements build on previous measures rolled out by Prime Minister Mark Carney in August 2025, and are part of the broader strategy implemented by the Canadian Forest Sector Transformation Task Force, established earlier this year in January.
Businesses and organizations interested in participating in this transformative wave are encouraged to apply through established programs like IFIT (Investing in Forest Industry Transformation), IFI (Indigenous Forestry Initiative), GloFor (Global Forest Fund), and GCWood (Green Construction through Wood Program).
This latest initiative is part of a continuous effort by the federal government to revitalize Canada's forestry industry, following a December 2025 provision of $9 million aimed at supporting wood product advancements. The government aims to maintain momentum in this sector by enabling robust growth and innovation, ensuring sustainable forestry practices and economic vigor for generations to come.
Minister Hodgson's announcement represents a significant federal investment aligning with Canada's environmental and economic goals, ensuring that the forestry sector remains a cornerstone of national prosperity.