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Investing in Canada’s Forest Sector – Forest Innovation Program and Expanding Market Opportunities Program (Voted)

General information

Name of transfer payment program Investing in Canada’s Forest Sector – Forest Innovation Program and Expanding Market Opportunities Program (Voted)
Start date March 12, 2009
End date March 31, 2018
Type of transfer payment Contribution
Type of appropriation Estimates
Fiscal year for terms and conditions 2016-17
Strategic Outcome 1 – Canada’s Natural Resource Sectors are Globally Competitive
Link to department's Program Alignment Architecture 1.1 – Market Access and Diversification > 1.1.2 – Forest Products Market Access and Diversification, and 1.2 – Innovation for New Products and Processes > 1.2.2 – Forest Sector Innovation
  1. Forest Innovation Program (FIP) aims at supporting the goal of sustainable natural resource development by enhancing the long-term economic opportunities for Canada's forest sector through increased investment in forest innovation.
  2. Expanding Market Opportunities (EMO) aims at maintaining and growing international wood product markets, expanding wood use in the North American non-residential and mid-rise construction market, and promoting the strong environmental credentials of Canadian forest products.

These transfer payment programs do not have any repayable contributions.

Results achieved Results Achieved for FIP:

FPInnovations developed a thermo mechanical pulp biorefining technology which serves to transform low quality wood into sugars and lignin for use in the biochemical industry and other sectors such as animal feedstock. This work is the foundation of a large-scale pilot plant to be built in Resolute Forest Products’ mill in Thunder Bay, ON.

FPInnovations contributed to design provisions for Cross Laminated Timber (CLT) in the 2016 Supplement of the Canadian timber design standard (CSA O86).  As a result, designers will be able to specify and design CLT in their projects with confidence and approvers will be able to review the structural and fire resistance design of projects that incorporate CLT. Thanks to the research on advanced building materials, such as CLT, the industry is making in-roads in the mid-rise wood-frame construction sector in Canada.

Canadian Forest Service worked with the Canadian Standards Association (CSA) Group to produce a second standard for cellulose nanomaterials. This standard “CSA Standard Z5200-17, Cellulose nanomaterials – Blank detail specification” was produced by consulting with both Canadian and international cellulose nanomaterial producers and potential end users by providing a template that lists material properties and characteristics that may be critical to end-product quality. Standards development are an important step in bringing a new product to market.

FPInnovations and CanmetENERGY, completed the first phase of a large multiyear project on developing large-scale production of renewable liquid fuel from low-value forest feedstock. The final result will be renewable diesel production from forest residues.

FPInnovations looked at the impact of different manufacturer pre-set engine throttle settings on productivity and fuel consumption of log-loaders. FPInnovations shares this knowledge with forest operators across the country, not only will fuel consumption drop, reducing operators’ costs, but emissions of greenhouse gases and other air pollutants will decrease and that benefits everyone.

A novel wood paste made from 100% bio-based materials has been developed and successful prototypes of bottles have been made from wood paste using 3D printing.

Results Achieved for EMO:


Canadian wood product exports to targeted offshore markets (China, Korea, Japan and Europe 28) exceeded performance targets in 2016 - reaching $3.5 billion. This is an increase of 12.2% from 2011 base year value of $3.1 billion,

Canadian wood products exports to emerging markets (India and Middle East 14) continue to show fluctuations and are highly impacted by global variables such as competitive pricing. In 2016, exports reached $64.8 million. This represents a decrease of 34.8% from the 2011 base year value of 99.3 million. However, emerging markets also continue to show great potential for growth, and early presence is essential to make the most of economic benefits. For instance, India has shown rapid expansion for high quality softwood products in the manufacturing sector to substitute for hardwood logs (for example, between 2006 and 2011, Canadian softwood lumber exports to India jumped from $1 million to $11.2 million).

North America

Influenced the use of wood in 232 non-residential + mid-rise construction projects between April 1, 2016 and March 31, 2017. Resulted in incremental wood sales of $135.6 million. These results are an all-time high for project conversions and wood sales.

Supported the design, testing, approval, and construction of two pioneering tall wood buildings in Canada:
  • Brock Commons Tallwood House – an 18-storey student residence at the University of British Columbia campus in Vancouver. The mass timber superstructure and building envelope were assembled in less than 70 days after the first prefabricated components were delivered to the construction site - 4 months ahead of schedule. Brock Commons will be open for occupancy in July 2017, at which time the residence will be the tallest contemporary wood building in the world.

Origine – the tallest all-wood condominium in North America at this time. Located in Quebec City, this 13-storey building is slated for occupancy by the end of 2017. Experience gained through design, testing, approval, and the construction of Origine was applied to two innovative projects: a made-for-Quebec technical guide that offers pre-approved design solutions for mass timber buildings up to 12 storeys; and ARBORA in Montreal—the world’s largest residential project being made with cross–laminated timber.

Comments on variances N/A
Audits completed or planned An internal audit of the Expanding Market Opportunities Program was completed in December 2016.
Evaluations completed or planned The evaluation of Forest Products Market Access and Development including the Expanding Market Opportunities (EMO) Program was completed in 2016. An evaluation of Forest Sector Innovation is planned to commence in 2017-18. An evaluation of Forest products Market Access and Diversification (which includes EMO) is planned to commence in 2019-20.  
Engagement of applicants and recipients EMO: Eligible recipients include not-for-profit wood products associations (engaged in wood product promotion and exports), manufactured housing associations, provinces, provincial Crown corporations, and not-for-profit organizations engaged in wood product research.

EMO issued its call for proposals by email on November 1, 2016, to all applicants registered in the program’s online system. The email included two background documents: the Handbook for Applicants and the Evaluation Process and Criteria.

FIP: The primary recipient of contributions is FPInnovations, a not-for-profit national forest research institute.

There is no open call for proposals through FIP. Officials meet with the principle named recipient, FPInnovations, on a regular basis, including the Assistant Deputy Minister of NRCan’s Canadian Forest Service, who is an observer on the FPInnovations Board of Directors. Any other potential funding recipients are engaged directly by program officials as well.

Performance Information (dollars)

Type of transfer payment 2014-15 Actual spending 2015–16 Actual spending 2016–17  Planned spending 2016–17 Total
authorities available for use
2016–17 Actual
spending (authorities used)
Variance (2016–17 actual minus 2016–17 planned)
Total grants   0 0 0 0  
Total contributions 34,596,994 33,101,721 31,200,000 30,273,715 30,259,720 (940,280)
Total other types of transfer payments 0 0 0 0 0  
Total program 34,596,994 33,101,721 31,200,000 30,273,715 30,259,720 (940,280)



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