Forest bioeconomy opportunities

Demand for renewable and low-carbon bioproducts, including biofuels, is growing globally to support the transition to a net-zero economy. The World Business Council for Sustainable Development estimates that the global circular bioeconomy will be worth up to $7.7 trillion US by 2030.

This economic opportunity for Canada is estimated to be $150-240 billion CAD, as the forest bioeconomy offers solutions to the growing need for sustainable, renewable and low-carbon products.

New techniques:

Mass timber is an innovative low-carbon, sustainable building material that allows the construction of taller and larger wood buildings. It also acts as long-term carbon storage.

New products:

Forest biomass is refined into advanced biomaterials and biochemicals for use in health care, pharmaceutical, food and packaging applications. Or it could be textiles that you wear, the low-calorie sweetener in your ice cream, or the graphite in your batteries.

New energy:

Forest biomass is the second-largest source of renewable energy in Canada, after hydroelectricity, providing renewable heat and electricity to industry, buildings, and communities to support Canada’s transition to a net-zero economy.

As the forest bioeconomy in Canada grows, this will support sustainable low-carbon jobs, education, skills and training. It will also help develop new markets, diversify the portfolio of products and establish competitive advantages across the entire forest sector value chain.

It also provides opportunities for Indigenous and non-Indigenous forest-based communities across Canada through Indigenous and community-led sustainable forest management that supports socioeconomic and sociocultural activities.

How Canada supports forest bioeconomy opportunities

Canada supports the development of the forest bioeconomy through its federal funding programs, including several programs designed to accelerate the creation and adoption of new products and technologies in the forest sector: the Forest Innovation Program, Investments in Forest Industry Transformation Program, and Green Construction through Wood Program. Together, these funding programs help to de-risk the innovation needed to foster a more innovative, competitive and environmentally sustainable forest sector.

Canada’s research and development centres further support the country’s forest bioeconomy while remaining an active participant in domestic and international bioeconomy initiatives.