December 15, 2025 Toronto, Ontario Natural Resources Canada
In the face of unjust tariffs, the Government of Canada is taking decisive action to support workers and spur industry transformation so we can adapt, compete and win in a new global environment. Canada's forest sector supports thousands of jobs and communities nationwide and plays a key role in delivering affordable housing through innovative wood products and technologies - part of the government's new strategy through the Buy Canadian Policy and Build Canada Homes.
Today, the Honourable Tim Hodgson, Minister of Energy and Natural Resources, highlighted progress on federal support measures for Canada's forest sector and announced the launch of a single-window pathfinding service, funding to promote the use of Canadian wood in construction, and the creation of the Canadian Forest Sector Transformation Task Force.
Natural Resources Canada's new, single-window pathfinding service includes a new website with information on all programs available to forest sector businesses and direct access to Natural Resources Canada experts on eligibility and program applications. The single-window service will make it easier for forest sector businesses and employees to navigate and apply to federal programs.
Under Natural Resources Canada's Green Construction through Wood (GCWood) program, Canada is investing over $9 million in projects that will help accelerate the adoption of innovative Canadian wood products, such as mass timber, in construction projects across the country. Initiatives include:
- Action to address insurance barriers
- Creating a Mass Timber Costing Guide
- Advancing code changes for low-carbon materials
- Expanding wood construction education
- Increasing the use of wood-based solutions through technical support and training
Together, these projects and initiatives aim will speed up innovation, boost market confidence and foster sustainable and affordable building practices across Canada.
The Minister also launched the Canadian Forest Sector Transformation Task Force. Starting in early 2026, the Task Force will seek input from industry, provinces and territories, Indigenous foresters, communities, and labour groups on how to restructure the forest sector to ensure it remains competitive over the long term. Led by Ken Kalesnikoff of Kalesnikoff Mass Timber and Frédéric Verreault of les Chantiers Chibougamau, the Task Force will have 90 days to seek recommendations on best practices to expand the use of modern construction methods (including mass timber and modular systems), diversify products, identify new markets, and enhance productivity. Additional members of the Task Force will be announced in the coming weeks.
Since August 2025, the government has introduced over $2.35 billion in measures designed to ensure Canada's forest sector remains competitive, sustainable and resilient for generations to come. These measures include:
- An additional $500 million to the Business Development Bank of Canada (BDC) Softwood Lumber Guarantee Program. A total of $1.2 billion in loan guarantees will be available to help softwood lumber companies maintain and restructure operations during this period of transformation.
- $500 million earmarked under the Canada Enterprise Emergency Funding Corporation's Large Enterprise Tariff Loan facility for softwood lumber firms facing liquidity pressures.
- $500 million to renew Natural Resources Canada's suite of forest sector transformation programs to increase the value of domestic production, support Indigenous-led business development and help to open new international markets for sustainable, high-quality Canadian forest products while prioritizing Canadian wood and technologies at home.
- Over $100 million over two years (starting in 2025-2026) to support employers with active Work-Sharing agreements who provide training for employees on reduced hours, benefiting an estimated 26,000 Canadians.
- $50 million for upskilling, reskilling and income supports for more than 6,000 affected softwood lumber workers through Employment and Social Development Canada's (ESDC) Labour Market Development Agreements program.
- Changes to federal procurement processes to prioritize Canadian lumber and materials in major infrastructure projects and housing construction. These include the upcoming Build Canada Homes initiative that will prioritize shovel-ready and large-scale multi-year projects that incorporate Canadian wood products and can begin within 12 months.
- Beginning in spring 2026, a 50 percent freight rate discount on interprovincial steel and lumber shipments within Canada
The Government of Canada is committed to ensuring Canada's forest sector remains strong and that workers receive the support they need in the face of unjust tariffs. Ongoing support measures for workers and industry and efforts to transform the forest sector will help build a stronger and more resilient economy for all Canadians.
