June 3, 2026 Victoria, British Columbia Natural Resources Canada
The Government of Canada is laser-focused on building a stronger, more sovereign economy. Our forest sector has a critical role to play in this effort: creating high-paying careers; supporting 300 Canadian communities; supplying the materials we need to build more affordable, sustainable homes; and strengthening Canada's exports and trade.
As ministers from across Canada prepare to meet at the Canadian Council of Forest Ministers (CCFM) this week, the Government of Canada is tackling the challenges we face today, from U.S. trade action to fibre supply to climate change, and transforming the sector for a more prosperous, stable future.
In January 2026, the Honourable Tim Hodgson, Minister of Energy and Natural Resources, launched the Canadian Forest Sector Transformation Task Force, with a mandate to promptly identify practical measures to transform and retool the sector.
Today, Minister Hodgsonreleased the Task Force's final report outlining recommendations to stabilize the sector, alongside measures to modernize operations, attract private investment, expand the use of wood in construction, increase production of value-added wood products and diversify export markets.
A Team Canada approach, anchored in co-operative federalism, is critical to transforming the forest sector and advancing the Task Force's recommendations. With provinces and territories owning and managing nearly 90 percent of Canada's forests, close federal-provincial-territorial alignment is essential, particularly to improve access to fibre, the foundation of the sector's value chain.
Over the next two days, the CCFM will meet to discuss the report's recommendations and advance a co-ordinated approach to sector transformation and investment attraction. Following these discussions, the Government of Canada will publish an Action Plan, which will serve as the foundation of Canada's upcoming Forest Sector Strategy.
Additionally, Minister Hodgson announced that the Business Development Bank of Canada (BDC) Softwood Lumber Loan Guarantee Program will be enhanced with increased maximum loan amounts and letters of credit. BDC will also offer two new programs that will provide direct loans to eligible companies across the forest sector, including those operating in harvesting and pulp and paper.
To support Canadian workers and businesses, the federal government is providing an additional $400 million to Canada's Regional Development Agencies to support the transformation of the forest sector, including $300 million under the Regional Tariff Response Initiative, and standing up a new $100-million Regional Development Fund.
Minister Hodgson also announced close to $130 million in federal funding for 56 projects across Canada that will help advance the sector's transformation. These projects will develop new low-carbon wood technologies, expand the use of mass timber in construction, support Indigenous participation and forest-sector businesses, increase manufacturers' capacity to add value to wood products and help diversify our export markets.
Canada has what the world wants, and our forest sector is playing a key role in building a stronger, more sustainable Canadian economy for all. By supporting workers today and modernizing the sector to thrive tomorrow, the Government of Canada is ensuring that our forest sector remains a pillar of strength and prosperity for decades to come.
