Canada launches Forest Sector Action Plan

Press Release

June 4, 2026

Canada’s forest sector is at a pivotal moment. Ongoing pressures — including tariffs, fibre supply challenges, changing market demands and climate change — are significantly impacting the industry and the communities that depend on it. In response, the Government of Canada is focusing on what we can control — and moving forward with provinces, territories and Indigenous partners on a co-ordinated approach to transform the sector into one that can thrive in the long term.

Today, the Honourable Tim Hodgson, Minister of Energy and Natural Resources, announced a Forest Sector Action Plan, with key commitments to drive the transformation of the forest sector in collaboration with provinces, territories, Indigenous Peoples and other key partners.

The Action Plan is informed by the Canadian Forest Sector Transformation Task Force’s recommendations and builds on the extensive work it completed during its 90‑day mandate.

The plan focuses on four priority areas to position Canada’s forest sector as a leading global supplier of both traditional and advanced forest products:

Securing a competitive and predictable supply of wood fibre;
Making the investments required for innovation and modernization across the sector;
Expanding domestic and international market opportunities; and
Supporting workers and communities through skills development and transition measures.

Federal, provincial and territorial governments discussed the implementation of the Action Plan during this year’s meeting of the Canadian Council of Forest Ministers (CCFM). At the meeting, governments committed to collaborate over the coming months to align policies and investments, reduce barriers and accelerate progress toward transformation. This work will come together by the end of 2026 in a formal Forest Sector Strategy for Canada.

Canada’s natural resources have long underpinned our prosperity — and as we work to build the strongest economy in the G7 and double non-U.S. trade over the next decade, our forest sector can play a central role. By supporting workers today and modernizing the industry for tomorrow, the Government of Canada is ensuring the forest sector remains a pillar of strength and prosperity for decades to come.

Quotes

“Mills are closing, Canadians are losing jobs, and communities are suffering, due to tariff pressures, market changes and more. We must take action to pivot, grow, modernize and diversify so we can protect the industry we have built and catalyze its growth for the long term. Today’s Action Plan builds on the work of the Canadian Forest Sector Transformation Task Force and provides a clear path forward for the concrete measures Team Canada will take to build a strong, prosperous, sovereign Canada for all.”

The Honourable Tim Hodgson
Minister of Energy and Natural Resources

“Canada’s forest sector relies on the people, families and communities who build it. At a time of real challenge, this Action Plan will empower workers with the skills they need to thrive while supporting good jobs and helping communities adapt. By investing in skills and innovation, we are building a stronger, more inclusive economy where the forest sector continues to create opportunity today and shape a sustainable future for generations to come.”

The Honourable Patty Hajdu
Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario

Quick facts

Canada’s forest sector is a major economic driver, supporting nearly 200,000 workers, including over 11,000 Indigenous people, and contributing more than $20 billion to our GDP.
Since August 2025, the Government of Canada has introduced over $2 billion in measures designed to defend and transform Canada’s forest sector, including the renewal of NRCan’s suite of forest sector transformation programs.
The Government of Canada announced the creation of the Canadian Forest Sector Transformation Task Force on November 26, 2025, as part of new measures to support and transform Canada’s forest sector.
The Task Force was launched on January 19, 2026, and mandated to deliver a final report within 90 days.
On June 3, 2026, Minister Hodgson released the Task Force’s final report and announced new and expanded measures to support the transformation of Canada’s forest sector as well as close to $130 million for 56 forest sector projects across the country.