Energy Minister Tim Hodgson Unveils $500 Million Forestry Sector Boost
Energy Minister Tim Hodgson announced a $500 million investment to support Canada's forestry sector through new programs, aiming at innovation, sustainable construction, Indigenous participation, and market expansion.
In a significant boost to Canada's forestry sector, Energy Minister Tim Hodgson has unveiled a $500 million commitment through a series of new initiatives aimed at transforming the industry. The announcement was made today in Tracyville, New Brunswick and marks the latest phase of a sweeping federal effort to rejuvenate the sector.
The funding will flow through four key programs, detailed as part of the national Calls for Proposals under Natural Resources Canada's forest sector transformation programs:
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Investments in Forest Industry Transformation (IFIT): This program aims to support innovation and diversification within forest companies, encouraging them to integrate new technologies and processes.
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Green Construction Through Wood (GCWood): With a focus on sustainable development, this initiative seeks to expand the use of Canadian wood in construction projects across the country.
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Indigenous Forestry Initiative (IFI): Designed to foster Indigenous participation in forestry, this program will provide opportunities and resources to Indigenous businesses and communities.
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Global Forest Leadership Program (GloFor): This program targets the expansion of Canadian wood products into domestic and international markets, thereby enhancing global competitiveness.
Beyond these programs, Minister Hodgson announced an additional $2.8 million in funding for specific projects already underway in New Brunswick and Nova Scotia. These projects are focused on expanding mass timber construction, enhancing the capacity of manufacturers to add value to wood products, and diversifying export markets.
The measures announced today are part of a larger federal strategy to bolster the forest sector against challenges, particularly those posed by "unjust U.S. trade measures." This initiative aligns with Canada's "Buy Canadian Policy" and the "Build Canada Homes" program, aimed at increasing the domestic utilization of Canadian wood.
Since August 2025, the government has invested over $2 billion in initiatives like these, underscoring the sector's importance to Canada's economic and environmental future.