Advancing protections and support for Canada's forest sector

Canada NewsWire

TORONTO, Dec. 15, 2025

TORONTO, Dec. 15, 2025 /CNW/ - 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.

Quotes

"Canada's forest sector is a cornerstone of our economy. The measures announced today do two things at once: they help companies manage immediate challenges, and they position the industry for long-term competitiveness. By supporting innovation, expanding markets and prioritizing Canadian materials, we are building Canada Strong."

The Honourable Tim Hodgson
Minister of Energy and Natural Resources

"The Canadian Wood Council deeply values the Government of Canada's continued leadership in advancing low-carbon construction through the GCWood program. GCWood support enables us to provide critical technical advisory services, deliver wood-focused education and training to existing and future practitioners, and contribute to code developments that reflect the evolving strengths of modern wood products and systems. GCWood investments are important, strategic inputs that strengthen Canada's forestry, manufacturing and construction sectors. We look forward to building on our work to date as we engage with partners nationwide to accelerate the adoption of sustainable wood solutions and modern methods of construction."

Rick Jeffery
CEO, Canadian Wood Council

"Mass timber offers a major opportunity to grow Canada's economy by accelerating housing delivery, creating local jobs and driving value-added manufacturing with Canadian wood — all while significantly reducing the environmental footprint of new buildings. Historically, high insurance rates — stemming from limited claims data — have slowed the sector's growth. The Mass Timber Insurance Action Plan, led by CSBA and the Canadian Wood Council with 40 insurance and building partners and support from NRCan, is tackling these challenges head-on. By addressing root causes, we're making it easier and more affordable to build mass timber housing and other projects across Canada."

David Messer
Executive Director, Climate Smart Buildings Alliance

"Mass timber is generating tremendous excitement as a climate-smart building solution that can help Canada build more housing, and with good reason. But with that excitement, there's still real uncertainty about the true costs and practical implications of building with it. Our Costing Guide is designed to cut through that uncertainty and provide clear, evidence-based insight into the benefits, challenges and trade-offs of mass timber construction."

Adam Jones
Director of Operations, Sustainable Buildings Canada

Quick Facts

Through Natural Resources Canada's Green Construction through Wood (GCWood) program, the following initiatives are receiving funding:
- The Canadian Wood Council is receiving $4,999,536 for a project that will increase the use of wood-based solutions, systems and products in Canada by building proficiency in the use of wood as a construction material through direct technical support, training, awareness and networking.
- The Canadian Wood Council is receiving $2,942,610 for a second project that will increase the number of educational offerings and content related to wood construction education in order to increase the understanding and acceptance of wood as a building material by post-secondary students, trades and other construction industry professionals.
- The Canadian Wood Council is receiving $594,000 for a third project to accelerate the adoption of performance-based building codes and to enable the forest industry's participation in developing code change proposals allowing for the increased use of low-carbon building materials and mass timber in wood buildings for the 2025 and 2030 editions of the National Building Code.
- The Climate Smart Buildings Alliance is receiving $272,000 for a project to conduct a feasibility and/or prototype-level assessment of potential solutions to address insurance challenges faced by the mass timber construction industry.
- Sustainable Buildings Canada is receiving $261,900 for a project to develop a Mass Timber Costing Guide focused on increasing the understanding of cost issues associated with the design, engineering, code equivalency and construction of large mass timber buildings.

Canada's forest sector is a major economic driver, supporting nearly 200,000 workers, including over 11,000 Indigenous Peoples, and contributing more than $20 billion to our GDP.
In 2024, 66 percent of Canada's total softwood lumber production was exported, of which nearly 90 percent was exported to the U.S.
New and innovative forest products, such as engineered timber, biofuels and forest product–based biodegradable packaging materials, are helping Canada reach net zero by 2050 and enabling more sustainable, efficient housing solutions.

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SOURCE Natural Resources Canada