Open
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. IFIT’s mission is to create a more competitive, sustainable, and low-carbon forest sector while helping companies establish new and diversified revenue streams. In support of this mission, the program funds capital investment projects and studies in its targeted innovation categories, including advanced wood-based building solutions, biomaterials and biochemicals, pulp and paper modernization, next-generation biofuels, and advanced decarbonization.
Objectives
As part of its 2026 renewal, the IFIT program will fund projects that advance the development and adoption of forest bioproducts, which support:
- developing diversified pulp and paper products that are new to the market and have the potential to substitute non-renewable materials like plastics
- improving fibre usage and process efficiency to support the long-term economic and environmental sustainability of the forest sector
- scaling up the use of mass timber and prefabrication in housing construction to accelerate construction
- expanding domestic housing production capacity to resolve supply chain bottlenecks
- reducing costs and improving resilience and innovation in housing construction supply chains
Funding
Capital Investment Project Stream
Open
Support for forest sector firms to adopt transformational technologies and diversify product streams
Background
Since its creation in 2010, the IFIT program has successfully funded 82 capital investment projects that have resulted in the deployment of first-in-kind technologies and advanced bioproducts derived from wood, including bioenergy, bioplastics, biochemicals and next generation building materials. Since 2019, the program has also funded 38 studies to assess the market and technological feasibility of innovative projects.
To help facilitate the creation of a more competitive, resilient and environmentally sustainable Canadian forest sector, IFIT aims to have the technologies it has funded replicated by other firms. In support of this goal, the program engaged with an engineering firm in 2015 to identify and analyze IFIT-funded projects that other Canadian forest product companies may be able to adopt.
Contact us
Email ifit-itif@nrcan-rncan.gc.ca for more information or to join our mailing list to receive program updates, webinar dates and registration details.
For more information on other measures available to support the forestry sector and its workers or for guidance in navigating the multiple funding opportunities, please visit Support for forest sector employers and workers.
News releases
- 2026-02-25: Government of Canada launches $500 million in support for retooling Canada’s forest sector
- 2026-02-25: Government of Canada invests in Atlantic Canada’s forest sector
- 2025-03-20: Canada and Quebec Invest in Sustainable Wood Construction
- 2025-03-20: Canada Invests in Nova Scotia’s Local Mass Timber Industry
- 2025-03-19: Canada Announces Support for British Columbia’s Forest Sector
- 2024-11-01: Canada Invests in World’s First Carbon Capture Technology Demonstration in Pulp and Paper Industries
- 2023-07-10: Canada Provides $8.5 Million for New, State-of-the-Art Woodroom Launched in Alberta
- 2023-07-05: Largest Biochar Production Plant in North America Contributes to Canadian Net-Zero Goals
- 2023-06-28: Canada Invests $10 Million in State-of-the-Art Art Biorefinery Conversion in Saskatchewan