Energy Minister Tim Hodgson Unveils $500 Million Forestry Support Amid Trade Challenges
Energy Minister Tim Hodgson announced a $500 million initiative to support Canada's forestry sector, focusing on innovation, diversification, and job retention amid trade challenges with the U.S.
In a significant move to bolster the Canadian forestry sector, Energy Minister Tim Hodgson announced a new $500 million national Calls for Proposals under Natural Resources Canada's forest sector transformation programs. The measures aim to drive innovation, support diversification, and safeguard jobs against the backdrop of ongoing trade disputes with the United States.
The announcement took place in Tracyville, New Brunswick, where Minister Hodgson outlined several pivotal funding avenues now open for application:
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Investments in Forest Industry Transformation (IFIT): This program will support industry innovation and help diversify production.
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Green Construction Through Wood (GCWood): Aimed at expanding the use of Canadian wood in construction, this initiative aligns with the government's Buy Canadian Policy and the Build Canada Homes project.
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Indigenous Forestry Initiative (IFI): This initiative is designed to increase Indigenous participation across the forestry sector.
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Global Forest Leadership Program (GloFor): This program will assist in opening up new domestic and international markets.
Alongside the new funding, an additional $2.8 million from existing funds has been allocated to projects in New Brunswick and Nova Scotia. These projects will focus on expanding the use of mass timber, enhancing Indigenous support, manufacturing value-added products, and diversifying exports.
This announcement builds on earlier measures outlined by Prime Minister Mark Carney in August 2025 and further supports introduced in December 2025, including a single-window service for forest-related applications and the establishment of the Canadian Forest Sector Transformation Task Force in January 2026.
Since August 2025, over $2 billion has been invested to modernize the sector, promoting low-carbon construction and economic resilience. The initiatives are part of Canada's broader strategy to enhance economic stability through sustainable development and international competitiveness.