Canada announced a Forest Sector Action Plan to transform the forest sector across the country, focusing on securing a competitive and predictable supply of wood fibre, making investments in innovation and modernization, expanding domestic and international market opportunities, and supporting workers and communities.
The plan notes that Canada’s forest sector supports nearly 200,000 workers, including over 11,000 Indigenous people, and contributes more than $20 billion to GDP. Since August 2025 the government has introduced over $2 billion in measures and on June 3, 2026 released the Task Force’s final report and announced close to $130 million for 56 forest sector projects.
Pillar One of the plan aims to secure competitive supply to incent increased investment. Proposed collaborative actions include federal investments in regions that can demonstrate long-term access to cost-competitive fibre, a fibre program to pilot new tenure and management models with willing provinces, territories and Indigenous partners, increased Indigenous and local participation in fibre management, and actions with provinces and territories to improve regulatory efficiency and certainty. The plan also calls for national-scale science, data-sharing, risk mapping and digitalization and cites the WildFireSat Mission and Firesmart activities to address climate-driven wildfire and insect risks.
Pillar Two proposes measures to pivot the sector through investment, partnership and innovation. The document lists financial instruments such as contracts for difference and offtake agreements to de-risk projects and gives investment examples: up to $1 billion per facility for projects such as sustainable aviation fuel, biocarbon and bioenergy with carbon capture and storage; mill modernization projects ranging from $250 million to over $1 billion; and biorefineries using wood byproducts requiring $1 billion to $3 billion each. The plan proposes a transformation fund with bankable measures including loans and loan guarantees and emphasizes anchor mills to support regional industry clusters.
Pillar Three focuses on pursuing new markets and opportunities by investing in trade and transportation infrastructure, particularly rail and port capacity, expanding and extending sector transformation programs, increasing Indigenous and local partnerships in the value chain, and supporting market access and standards navigation. The federal government proposes convening federal, provincial and territorial dialogue on common approaches to international relationships, organizing inbound missions to promote collaboration, and developing a unified brand for Canada’s forest sector.
Pillar Four addresses support for communities and workers, proposing programming for skills development and transition supports, estimating supply chain impacts from sector resizing, and training in wood properties, structural wood products and digital skills for architects, designers and engineers. The plan proposes continued investment through Labour Market Development Agreements delivered by provinces and territories, timely Employment Insurance for affected workers, and community planning and transition funding where job losses occur.
The document notes that 88% of Canada’s forests are owned by provinces and territories and frames the federal measures as collaborative actions with those jurisdictions to drive large-scale transformation and increase investor confidence. The plan is intended to be discussed and aligned with provinces and territories and to be brought together as a formal Forest Sector Strategy for Canada by the end of 2026.