Forestry Sector welcomes programs to innovate and diversify their production

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February 25, 2026

Forestry gives Canada the materials to build.

The Forest Products Association of Canada (FPAC) today responded to the federal government’s announcement to support and retool our forest sector to ensure it remains a pillar of national strength and prosperity.

The Honourable Tim Hodgson, Minister of Energy and Natural Resources, launched a national Calls for Proposals under Natural Resources Canada’s forest sector transformation programs, supported by a $500-million commitment. Eligible businesses and organizations can now apply for funding through:

• The Investments in Forest Industry Transformation (IFIT) program

• The Green Construction Through Wood (GCWood) program

• The Indigenous Forestry Initiative (IFI)

• The Global Forest Leadership Program (GloFor)

FPAC urges members, partners and Canadian forestry companies to explore these programs to innovate, diversify production, boost domestic demand, expand wood use in construction, support Indigenous involvement, and access new markets.

"In a world where trade is getting more volatile, Canada has to focus on what we can actually control right here at home. These programs will help innovate our lumber and pulp and paper members’ operations. The forest products sector provides the building blocks for our country - from the lumber for our houses to the renewable energy we need to be self-reliant.” Derek Nighbor, FPAC President and CEO

Canada’s forest products sector is a national economic engine, supporting over 200,000 workers and leading the country’s trade diversification efforts. Providing the building blocks for our country, Canada’s forest products sector is advocating for regulatory efficiency, including parallel permitting, single-window approval requirements and measurable accountability to focus on what Canada can control. By fixing these known friction points, the federal government can empower the forest sector to drive Canada’s strategic autonomy and economic sovereignty.

About FPAC

FPAC provides a voice for Canada’s wood, pulp, and paper producers nationally and internationally in government, trade, and environmental affairs. As an industry, we contributed $21 B in real GDP in 2024.

Canada's forest products sector is one of the country’s largest employers—providing 200,000 direct jobs and operating in hundreds of communities across the country. Our members are committed to collaborating with Indigenous leaders, government bodies, and other key stakeholders to develop a cross-Canada action plan aimed at advancing forest health, while supporting workers, communities and our environment for the long term.

For more information contact:
Rebecca Rogers
Director, Communications
rrogers@fpac.ca
(613) 563-4518
Follow FPAC on LinkedIn
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