West Kelowna, British Columbia (Richa Walia): In a decisive step toward reshaping Canada’s economic future, Prime Minister Mark Carney today announced a sweeping set of measures aimed at revitalizing and future-proofing the country’s softwood lumber industry. Speaking from Parliament Hill, the Prime Minister outlined a transformative strategy that places Canadian innovation, sustainability, and economic resilience at its core.
“With the global trade environment evolving rapidly, we must act decisively to support our industries and workers,” Carney said. “Canada’s new government is committed to building a resilient economy rooted in Canadian resources, ingenuity, and leadership in sustainable practices.”
The newly announced initiatives form part of a broader industrial strategy aimed at strengthening domestic production, fostering innovation, and diversifying trade partnerships. For the softwood lumber sector—long a cornerstone of Canada’s forest economy—the measures mark a significant investment in its long-term competitiveness and adaptability.
Key Components of the Strategy
- $700 Million in Loan Guarantees for Immediate Support
To help softwood lumber companies navigate current financial challenges, the federal government will provide up to $700 million in loan guarantees. These funds are intended to offer credit and liquidity support, enabling businesses to maintain operations and restructure during this period of transition. - $500 Million to Drive Product and Market Diversification
A major investment will target innovation and diversification within the sector. This includes increasing domestic processing capabilities, expanding value-added production, and supporting Indigenous-led forestry businesses. The goal is to modernize the processing and utilization of lumber as demand for sustainable construction solutions grows. - “Build Canadian” Procurement and Construction Initiative
The government is introducing new federal procurement policies to prioritize Canadian lumber in infrastructure and homebuilding. As Canada accelerates construction on major projects and aims to build up to 500,000 homes per year over the next decade, the focus will be on using Canadian-sourced materials like mass timber and softwood lumber. The forthcoming Build Canada Homes initiative will also provide financing to private home builders who adopt Canadian technologies and materials. - Expanding Export Markets for Canadian Wood Products
To reduce overreliance on traditional markets, a new federal initiative will promote Canadian wood products abroad. By revitalizing export programs, the government will work to grow demand for Canadian lumber in high-growth global markets, positioning it as an affordable, sustainable solution in the global construction sector. - $50 Million for Worker Support and Skills Training
To support more than 6,000 softwood lumber workers affected by industry changes, the government will invest $50 million through Labour Market Development Agreements. The funding will enhance access to reskilling programs, temporary income supports, and Employment Insurance enhancements, helping workers adapt to emerging technologies and job roles within a modernized forestry sector.
A Future Built on Resilience
Today’s announcement signals a strategic pivot in how Canada leverages its natural resources for sustainable growth. “Our economy is moving from reliance to resilience,” Carney emphasized. “This transformation of the softwood lumber industry is not only about protecting jobs—it’s about unlocking the full potential of Canadian resources to drive long-term prosperity.”
Industry leaders, Indigenous communities, and labor representatives have largely welcomed the announcement, citing it as a much-needed step toward creating a sustainable and competitive forestry sector.
As global markets shift and environmental priorities take center stage, Canada’s commitment to supporting its industries through innovation and strategic investment positions it to lead in a new economic era—starting with the very forests that have long defined its landscape.
