Energy Minister Tim Hodgson Unveils Major Initiatives for Canadian Forestry Sector
Energy Minister Tim Hodgson has announced federal measures to bolster Canada's forestry sector with $500 million in transformation funding. The initiative includes $2.8 million for projects in New Brunswick and Nova Scotia, focusing on mass timber, Indigenous businesses, and export diversification.
In a significant announcement on February 25, 2026, Canada's Energy and Natural Resources Minister Tim Hodgson launched comprehensive federal measures aimed at revitalizing the nation's forestry sector. The announcement unfolded in Tracyville, New Brunswick, as part of a strategic move to support and modernize this crucial industry.
Financial Backing and Project Support
A headline initiative is the national call for proposals financed by a substantial $500 million in funding, designed to reshape the sector through transformation programs. Alongside this, Minister Hodgson unveiled $2.8 million in financing for seven distinct projects across New Brunswick and Nova Scotia. These are funded through existing programs, including the Investments in Forest Industry Transformation (IFIT), Indigenous Forestry Initiative (IFI), Global Forest (GloFor), and Green Construction through Wood (GCWood).
These projects target several key areas:
- Expanding the use of mass timber in building construction.
- Supporting Indigenous groups and forestry-focused businesses.
- Enhancing the capacity of manufacturers to produce high-value wood products.
- Diversifying export markets for Canadian wood.
Building on Past Measures
These new measures build upon earlier actions taken by the federal government to boost competitiveness in the forestry sector. Notably, in August 2025, Prime Minister Mark Carney introduced measures amounting to over $2 billion, aimed at aligning sector growth with the nation's housing and infrastructure expansion plans.
Further supportive steps included the establishment of the Canadian Forest Sector Transformation Task Force in January 2026 and an allocation of $9 million in December 2025 for innovative wood product initiatives and other supportive services.
Opportunities for the Industry
Eligible businesses can apply for financial assistance through Natural Resources Canada's programs, which prioritize projects featuring innovative, low-carbon materials, Indigenous leadership, and resilience for forestry workers.
Ministerial Remarks
Minister Hodgson emphasized the forward-looking nature of these initiatives, stating: "These investments are about supporting workers today and building a stronger future for forestry communities. By modernizing the sector and opening new opportunities, we are investing in our own resilience and building Canada Strong."
The comprehensive approach underscores the government's ambition to modernize the industry, providing support for today’s workers while planning for a more sustainable future in forestry.