Evaluation Summary: Forest Sector Competitiveness Program

Program description

The Forest Sector Competitiveness Program (FSCP) responds to cyclical and structural downturns and trade irritants that threaten the competitiveness of the Canadian forest sector. The Program supports activities with the objectives of (1) fostering innovation in sustainable forest fibre supply, bioproducts and advanced wood building materials and their adoption, and (2) promoting market diversification (domestically and internationally).

Six ongoing program components were included in the scope of this evaluation – the Forest Innovation Program (FIP) and the Canadian Wood Fibre Centre (CWFC), Investments in Forest Industry Transformation (IFIT), Indigenous Forest Initiative (IFI), Green Construction through Wood (GCWood), Global Forest Leadership (GloFor), and Forest Systems Information and Technology Enhancement (ForSITE). The evaluation also included the Expanding Market Opportunities (EMO) program, which sunset in 2023.

When the FSCP’s mandate was last renewed in 2023, it added environmental focus, strengthened Indigenous participation, and emphasized Canada’s international forest reputation. Through its components, the Program supports a resilient, innovative, and sustainable forest sector – from catalyzing innovation (FIP & IFIT) and promoting meaningful Indigenous engagement (IFI), to climate knowledge and environmental forest performance (ForSITE), forest sector reputation (GloFor), and expanding low-carbon wood construction (GCWood).

The FSCP is administered by the Canadian Forest Service (CFS), within Natural Resources Canada (NRCan). From 2018-19 to 2023-24, the FSCP was allocated $564M to deliver these six programs.

Evaluation findings

  • Overall, the evaluation found that the FSCP remains relevant and continues to evolve in response to changing government priorities and the Canadian forest context.

    • A case study on biochar shows how FSCP projects reduce carbon: a project proponent turns forest waste into biochar, storing carbon long-term in soil and replacing fossil carbon in automotive foam.

  • The FSCP is flexible and adaptive, aligning with federal and departmental priorities while meeting stakeholder needs. It integrates science, economics, and policy to strengthen competitiveness, support innovation, sustainable forest management, environmental performance, supply chain resilience, and the development of new forest products and technologies that diversify revenue streams and foster a low-carbon bioeconomy. Opportunities remain to enhance international market development, small- and medium-sized enterprise support, and access to market data.
  • The FSCP’s program design and delivery are adequate, with strong complementarity across core innovation components (FIT, IFIT, GCWood) and no duplication of activities. However, CFS could improve the way it communicates the contribution of newer components (GloFor, ForSITE) to the Program’s theory of change.
  • From 2019-20 to 2022-23, the FSCP made some progress toward its outcomes and spent most funds as intended, though COVID-19 caused some underspending and reallocation. However, limitations in performance measurement impede a full analysis of results.

    • Interviewees highlighted that wood products help sequester carbon, supporting Canada’s net-zero goals in building construction and other sectors.

    0.54–4.6 Mt CO₂e expected to be mitigated by 2030
    11 building/infrastructure projects replicated (target: 10–15)
  • Revisions to the FSCP’s performance measurement framework in 2024 improved its coherence but more time is needed to fully test new metrics and standardize data collection.

    • Canada’s Forest Sector Trends (2023)

    Nominal GDP Contribution: $27B (0.9%)
    Change from 2022: -22%
    Real GDP Change: -8%

  • Available data indicate most components are on track to achieve their targets for immediate outcomes by 2025-26 and are progressing on intermediate outcomes, including for diversity and inclusion. ForSITE faced start-up challenges with staffing and IT infrastructure, largely beyond its control.
  • Achievement of ultimate outcomes linked to forest sector trends depends on external factors like prices, production, and demand.
  • FSCP program components are administered separately, though some efforts have been made to improve integration (e.g., CRM systems). Further operational integration could enhance efficiency where cost-effective but may be challenging.

Recommendations and management response and action plan

  1. The Assistant Deputy Minister (ADM) of the Canadian Forest Service (CFS) should assess program relevance in the evolving operating context and adapt activities, such as implementing an updated approach to the international marketing of made-in-Canada innovations that can effectively sustain or increase Canada’s forest sector competitiveness in the global market.

Management agrees. Government priorities focus on building new economic relationships with reliable trading partners and facilitating the transition to a modern, competitive forest sector that supports product and market diversification. In August 2025, the government announced the renewal of Forest Sector Competitiveness programs to support market diversification measures.

In response to the recommendation and government priorities, the renewed Global Forest Leadership (GloFor) program will expand on the current program by re-introducing international market and product development and diversification activities into Canada’s international forest sector programming. To support this expansion the program will:

  • Update the Terms and Conditions to include the addition of context regarding the re-invigoration of international market and product development and diversification.
  • Use a blend of periodic calls-for-proposals, as well as directed, targeted and/or unsolicited proposals, to ensure the program responds to the current dynamic international trade environment and emerging opportunities.
  • Allocate contribution funding to support international market and product development and diversification activities, including:
    • Support export diversification efforts targeted to expand sales of softwood lumber (SWL) in existing and international markets (outside the U.S.A), and other traditional commodity forest products (e.g., pellets, oriented strand board, plywood, pulp and paper).
    • Support international market development efforts for non-traditional and new forest products (e.g., new solid biofuels, new wood building products, cellulose nanocrystals and nanofibers, lignin-based adhesives and resins), through activities such as targeted, in-country awareness-building, promotion and marketing.

About the evaluation

  • The evaluation was conducted by NRCan’s Audit and Evaluation Branch to comply with the Financial Administration Act.
  • Using a theory of change approach, the objective of the evaluation was to assess the relevance, effectiveness, and efficiency of the FSCP from 2018-19 to 2023-24.
  • Surveyed FSCP managers and staff (25% response rate; 17 respondents).
  • Interviewed 35 key informants (CFS, enabling functions, proponents).
  • Undertook 6 case studies on projects and outcomes.
  • Observed tracking system demonstrations (Agreements Module Interface (AMI), Client Relationship Management (CRM), carbon modelling).
  • Reviewed internal and external documents.
 
Date modified: