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

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

Link to department's Program Inventory

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

Description

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.

Expected results

Expected outcomes for FIP:

The following are outcomes over which the program has some direct control:

• The Canadian forest sector adopts innovative products, processes and technologies;
• Forest products, process, and technology innovations are developed for the forest sector; and,
• Federal and federally-funded research address innovation needs of the forest sector in a coordinated manner.

The FIP will directly contribute to the following results:

• Forest-sector innovation programs address key opportunities and threats facing Canada's forest sector;
• The attributes of forest products are supported by science-based evidence; and
• Broad engagement of stakeholders in forest-based research.

Expected outcomes for EMO:

In the long-term, EMO will contribute to:

• Diversified Canadian wood product markets and market segments. For example, recreational, commercial and institutional buildings, as well as wood/hybrid mid-rise and tall wood buildings.

In the mid-term, EMO will contribute to:

• Enhanced capacity for builders, architects and specifiers to use Canadian wood products;
• Greater recognition of Canada abroad as a preferred supplier of wood products;
• Regulatory acceptance/recognition of Canadian wood products and building systems in building codes, standards and policies;
• Forest companies explore and pursue opportunities in target markets; and,
• Canadian forest products are considered to be an environmentally responsible and preferred choice in target markets.

In the short-term, EMO will directly achieve the following results:

• Regulatory agencies and buyers of Canadian forest products have the information they need to determine product performance and environmental credentials;
• Industry has information to identify emerging market trends and pursue market opportunities;
• Industry supports EMO market development activities;
• Cooperation and coordination is increased among key stakeholder groups;
• Increased awareness of Canadian forest products and construction technologies ; and,
• Signatories of the Canadian Boreal Forest Agreement (CBFA) have the science they need to advance the objectives of the CBFA.

Key performance measures include:

• Level of exports of wood products to a greater amount of markets (Herfindahl index);
• Percentage of Canadian share of wood product market;
• Volume/value of Canadian wood product exports;
• Level of industry engagement and support in EMO as indicated by value/percentage of industry-leveraged funding;
• Number of non-residential and mid-rise projects converted to wood, sales of wood products used in non-residential application, and market share of wood in non-residential construction and mid-rise applications;
• Number of builders, architects and specifiers trained in the use of Canadian wood products and construction technologies; and,
• Builders, architects and specifiers have the capacity to use Canadian wood products, as indicated by number of builders, architects and specifiers trained in the use of Canadian wood products and construction technologies.

Fiscal year of last completed evaluation

Evaluation of FIP was completed as part of Forest Sector Innovation sub-program in 2014-15.

Evaluation of EMO was completed in 2015-16.

Decision following the results of last evaluation

The evaluation for FIP found the program to be relevant, is consistent with industry priorities, has made extensive use of collaborations and maintained strong partnerships, and is important in supporting the forest sector in achieving innovation and transformation.  

The evaluation of EMO found the program to be relevant. It also concluded that continued funding is needed for forest products to address market access issues in both mature and emerging markets; and is important to achieving long-term objectives in these markets.

Fiscal year of planned completion of next evaluation

Timing for the next evaluation of EMO is contingent on renewal of the program.

Timing for FIP is contingent on renewal of the program.

General targeted recipient groups

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

EMO: Eligible recipients include not-for- profit forest products associations (engaged in forest product promotion and exports), manufactured housing associations, provinces, provincial Crown corporations, for-profit and not-for-profit organizations engaged in forest product research.

Initiatives to engage applicants and recipients

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.

EMO issues an annual call for proposals by email to all applicants registered in the program’s online system. Each year the Call email includes the Handbook for Applicants and the Evaluation Process and Criteria.

Total grants

0

0

0

0

Total contributions

31,199,000

31,200,000

0

0

Total other types of transfer payments

0

0

0

0

Total program

31,199,000

31,200,000

0

0