Natural Resources Canada opens national funding calls across four programs and announces $2.8 million for seven projects in New Brunswick and Nova Scotia.

Canada launches $500 million forest-sector retooling support

Canada launches $500 million forest-sector retooling support

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The Government of Canada launched national calls for proposals under four forest-sector transformation programs, supported by a $500 million commitment, to support retooling and diversification in Canada’s forest sector, Natural Resources Canada announced.

Eligible businesses and organizations can apply through the Investments in Forest Industry Transformation (IFIT) program, the Green Construction Through Wood (GCWood) program, the Indigenous Forestry Initiative (IFI), and the Global Forest Leadership Program (GloFor). The release says the programs are intended to help Canadian companies innovate and diversify production, drive domestic demand, expand the use of Canadian wood in construction, support Indigenous participation, and open new domestic and international markets.

The government said the announcement follows measures introduced in August 2025 and the launch of the Canadian Forest Sector Transformation Task Force, which began its work in January 2026. The release links the programs to federal initiatives described as the Buy Canadian Policy and Build Canada Homes.

Minister of Energy and Natural Resources Tim Hodgson also announced $2.8 million in existing program funding through IFIT, IFI, GloFor and GCWood, supporting seven projects in New Brunswick and Nova Scotia. The release says the projects will expand the use of mass timber in construction; support Indigenous groups and forestry businesses; increase manufacturers’ capacity to add more value to wood products; and diversify Canada’s forest products and their export markets.

In its quick facts, the release says Canada’s forest sector supports nearly 200,000 workers, including over 11,000 Indigenous people, and contributes more than $20 billion to GDP. It also says the forest sector in the Maritime provinces supports almost 19,000 jobs and provides nearly $2 billion to real GDP, described as 1.6 percent of total GDP for the region.

Natural Resources Canada said it has launched a single-window pathfinding service, including a website with information on all programs available to forest-sector businesses and direct access to departmental experts, to help forest-sector businesses and employees navigate and apply to federal programs.