Investments in Forest Industry Transformation (IFIT)

About the program

Created in 2010, the Investments in Forest Industry Transformation (IFIT) program facilitates the adoption of transformative technologies and products in the Canadian forest sector by bridging the gap between development and commercialization. The program aims to create a more competitive, resilient, and environmentally sustainable sector by providing funding to de-risk innovation in the industrial supply of wood-based bioenergy, biomaterials, and biochemicals. The program will also focus on projects that will lead to an increased supply of advanced building materials like mass timber.

As part of its 2026 renewal, the IFIT program will support projects that advance the development of forest bioproducts, advanced biofuels, low-carbon building materials (e.g., advanced wood products and building systems), and diversified pulp and paper products that are new to the market and have strong potential to substitute non-renewable materials like plastics.

IFIT will also support the federal housing agenda by scaling up the use of mass timber and prefabrication in housing construction and by expanding domestic production capacity to resolve supply chain bottlenecks., These efforts enable faster delivery of homes while advancing climate objectives. Mass timber and prefabricated wood construction, supported by IFIT investments, directly address housing challenges by accelerating construction, enabling mid-rise and high-rise residential construction, reducing costs, and improving resilience and innovation in supply chains. These investments will enable the next wave of innovation, solidifying Canada’s position as a leader in forest sector transformation.

The IFIT program is delivered through two streams: capital investment projects and studies.

Capital investment projects

Funding opportunity coming soon

The IFIT capital investment projects stream provides non-repayable contributions of up to $20 million of a project’s eligible costs to enable forest sector firms to adopt transformational technologies and diversify product streams, ensuring industry competitiveness and greater environmental outcomes.

In its last iteration, the program successfully funded 22 capital investment projects that resulted in the deployment of first-in-kind technologies and advanced bioproducts derived from wood, such as bioenergy, bioplastics, biochemicals, and next generation building materials. These projects support forest-reliant communities and are estimated to have secured approximately 8,000 direct and 6,000 indirect jobs.

Contact us

For more information or to join our mailing list to receive program updates, webinar dates, and registration details, email ifit-itif@nrcan-rncan.gc.ca.

For more information on other measures available to support the forestry sector and its workers or for guidance in navigating the multiple funding opportunities, email forestsectorsupport-soutiensecteurforestier@nrcan-rncan.gc.ca.