Canada Announces Support for Quebec’s Forest Sector

Press Release

March 20, 2025

Canada’s forest sector is an important contributor to our national economy. Since 2017, Canada’s softwood lumber exports have been subject to unfair and unwarranted U.S. duties and now face the threat of additional unjustified trade barriers. It is now more important than ever to support Canadian businesses so that they can innovate, diversify and expand their markets so they can continue to support thousands of jobs in hundreds of communities across the country.

Today, the Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources, along with François-Philippe Champagne, Minister of Finance, announced a total investment over $13.3 million for 28 projects that will help to boost the competitiveness and resiliency of Quebec’s forest sector while growing wood product exports.

The investments announced today include:

Nearly $10.8 million in funding through the Investments in Forest Industry Transformation (IFIT) program for six projects that will facilitate the adoption and commercialization of new technologies, focusing on the production of innovative, low-carbon products that result in new or diversified revenue streams.
Over $2.5 million in funding through the Indigenous Forestry Initiative (IFI) program for 22 projects that will advance economic development opportunities in the forest sector for Indigenous communities while strengthening Indigenous leadership and participation in forest stewardship.

The Government of Canada will always stand up for Canadians and Canadian industry, and that very much includes the forest sector. The investments announced today will support leadership, innovation and sustainable practices in the forest sector while creating significant economic and environmental benefits for Quebecers and Canadians.

Quotes

“Canada’s forest industry is vital not only to our economy but also to the global market. Our forests drive innovation, support jobs and provide sustainable resources to the world, which support, for example, building more homes. Protecting this key natural resource is essential to securing the future of our economy and ensuring growth, resilience and sustainability, both at home and abroad. With the funding announced today, the Government of Canada is demonstrating its commitment to defending Quebec’s forest sector, while strengthening Canada’s economy and making it more resilient.”

The Honourable Jonathan Wilkinson
Minister of Energy and Natural Resources

“As Canada’s forest sector faces both challenges and opportunities, along with a global increase in demand for sustainable forest products, the Government of Canada is taking action to ensure our forest sector is well positioned and well protected. The investments announced today will support new technologies and processes that go beyond the traditional milling and pulping, improving productivity, innovation and strengthening economic stability for the sector.”

François-Philippe Champagne
Minister of Finance

“Our forest industry is an economic pillar and driver of innovation. By protecting this precious resource, we’re supporting workers, strengthening our economic resilience and fighting for a sustainable future. Together, we will ensure that our forests continue to prosper for generations to come.”

The Honourable Diane Lebouthillier
Member of Parliament for Gaspésie–Les Îles-de-la-Madeleine

“Now, more than ever, it is essential to support our local industries, and with this funding our government is betting on Quebec’’s forestry sector. The investment in Canada’s forest industry stimulates its development and resilience to secure this key natural resource’s place on the global market.”

Angelo Iacono
Member of Parliament for Alfred-Pellan

“These strategic investments will enhance the competitiveness and sustainability of Quebec’s forestry sector while driving innovation and the transition to a low-carbon economy. Through these projects, we are paving the way for cutting-edge solutions that will create new economic opportunities for our regions and communities.”

Sophie Chatel
Member of Parliament for Pontiac

Quick facts

Canada’s forest sector provides sustainable jobs for nearly 200,000 Canadians, including over 11,000 Indigenous people. In Quebec, the forest sector employs over 61,000 workers and exported $11.3 billion in forest products to global markets in 2024.
In 2024, production in the forest sector contributed $21.6 billion (0.9%) to Canada’s real gross domestic product (GDP). In a global context, Canada continues to maintain a strong forest product trade balance. In 2024, Canada’s total forest product exports were valued at $37.2 billion, with the majority destined for the United States.
Canada’s forest sector produces many products essential to the lives of everyday people such as lumber for housing and pulp for paper products. Moreover, the sector is constantly innovating to meet the demands of our ever-changing world. This includes:
- the adoption of new low-carbon technologies;
- the production of non-traditional building materials for modular and affordable housing;
- biofuels to meet our energy needs; and
- biochemicals that can be used to produce pharmaceuticals, biodegradable plastics and personal care products.