Investments in Forest Industry Transformation — Capital Investment Projects

Forestry and wood products companies facing pressure to modernize, cut emissions, or move beyond traditional product lines may find a major opportunity through the Investments in Forest Industry Transformation — Capital Investment Projects program. Designed for businesses operating across Canada, this Natural Resources Canada initiative helps offset the high cost of large-scale capital projects that bring new technologies out of development and into commercial use. The focus is on transformation—supporting investments that make the forest sector more competitive, resilient, and aligned with Canada’s climate and housing goals.

The capital investment stream is aimed at projects that significantly change how forest resources are used, whether that means producing advanced bioproducts like biofuels and biomaterials, expanding into next-generation pulp and paper products, or scaling up mass timber and prefabricated wood systems for construction. Funding support can reach into the millions for qualifying projects, making it particularly relevant for established small, medium-sized, and larger firms planning first-of-kind facilities, major equipment upgrades, or new production lines that reduce reliance on fossil-based materials.

With the program set to reopen and currently expected to accept applications in the near term, businesses considering transformative forest-sector investments should begin evaluating project readiness, costs, and innovation impact to see how this funding could support their next phase of growth.