Forestry Grants in Quebec

Forestry has long been a cornerstone of Québec’s economy, supporting thousands of jobs across rural regions and serving as a foundation for many manufacturing and export industries. From the sawmills of Saguenay–Lac-Saint-Jean to the engineered wood producers of the Eastern Townships, the province’s forest sector is adapting to new realities: sustainable practices, advanced technology, and international competition.

Today, Québec’s forestry companies face both challenges and opportunities. Pressures from global markets, environmental standards, and workforce shortages push the sector to modernize and diversify. At the same time, a growing demand for low-carbon materials, renewable energy, and value-added wood products is creating new pathways for innovation.

To help the industry make this transition, Québec offers a wide range of grants, incentives, and funding programs—many focused specifically on the forest sector. From provincial initiatives like Programme Innovation Bois to federal programs such as Investments in Forest Industry Transformation (IFIT) and the Strategic Response Fund, companies across Québec can access millions in funding to modernize operations, adopt clean technologies, and pursue new markets.

This article explores the most relevant forestry funding opportunities available to Québec businesses in 2025, including both provincial and federal programs, and highlights how these initiatives drive innovation, sustainability, and economic growth in one of Canada’s most vital industries.

Why Forestry Companies in Québec Need Funding and Grants

Québec’s forestry sector contributes billions to the economy each year. Yet, it faces complex challenges—from climate change and resource management to digital transformation and trade uncertainty. Grants and funding programs are essential to help businesses stay competitive and sustainable in this changing environment.

For many companies, modernization requires significant upfront capital. Replacing aging equipment with automated systems, developing bioproducts, or electrifying facilities often demands investments that are hard to finance through private capital alone. Government programs help bridge that gap by offering non-repayable grants, low-interest loans, or loan guarantees—allowing businesses to innovate faster while maintaining financial stability.

Funding in the forestry sector typically supports four main objectives:

• Innovation: Accelerating the adoption of new technologies, materials, or processes.

• Sustainability: Reducing carbon emissions and improving resource efficiency.

• Competitiveness: Increasing productivity and export potential.

• Regional development: Strengthening rural and Indigenous economies that depend on forestry.

These priorities shape the programs described below, each of which helps transform Québec’s forestry landscape for the next generation.

Provincial Forestry Funding Programs in Québec

Québec’s provincial government has invested heavily in supporting innovation and sustainable growth in the forest industry. Through its Ministry of Natural Resources and Forests and Investissement Québec, the province offers a suite of programs tailored to both small and large enterprises involved in wood transformation, bioenergy, and clean technology.

Programme Innovation Bois (Wood Innovation Program)

The Programme Innovation Bois (PIB) is Québec’s flagship forestry grant, designed to drive innovation in the transformation of forest products. Since its launch in 2016, the program has financed hundreds of projects across the province—helping mills, manufacturers, and industrial groups adopt new technologies, optimize production, and develop new markets.

The program typically covers up to 50% of eligible project costs, with maximum contributions of about $2.5 million per project for large-scale innovations. A secondary stream supports projects that process lower-quality wood or waste materials, promoting circular economy practices.

Eligible activities include:

• The installation of new processing technologies such as robotics, sensors, or automated grading systems.

• The development and commercialization of new wood-based products, such as biocomposites or engineered wood components.

• Feasibility studies and demonstration projects showcasing innovative wood applications.

The PIB has been central to Québec’s strategy of transforming its forestry industry into a hub of innovation and sustainability. Recent funding rounds have supported projects ranging from AI-assisted wood drying to robotized structural assembly and biochar production.

In 2025, the Québec government increased the PIB budget by another $25 million, ensuring continued support for modernization and new product development. For forestry and manufacturing companies ready to invest in cutting-edge technologies, the Programme Innovation Bois remains one of the most valuable funding opportunities in the province.

Programme d’innovation en construction bois (Wood Construction Innovation Program)

Complementing the PIB, the Programme d’innovation en construction bois promotes the use of wood in commercial, institutional, and residential buildings. The program funds demonstration and research projects that showcase innovative wood construction methods—particularly mass timber and hybrid systems that replace concrete or steel.

This initiative aligns with Québec’s 2030 Plan for a Green Economy, encouraging sustainable building practices that reduce carbon footprints. Funding typically covers up to 50% of eligible costs, helping de-risk experimental or first-in-Canada projects.

Examples of supported projects include:

• A four-storey modular mass timber housing complex developed by Chantiers Chibougamau in Northern Québec.

• The design of a 21-storey wood residential tower in Montréal, advancing building code research for tall wood construction.

• A community building project led by the Cree Nation of Waswanipi, built with locally sourced wood to support Indigenous-led innovation.

By funding such projects, Québec not only strengthens its wood construction industry but also showcases the province as a leader in sustainable architecture and material innovation.

Investissement Québec (IQ): ESSOR, Productivité Innovation, and Compétivert

Beyond specific forestry grants, Investissement Québec (IQ) provides a range of financing programs that complement provincial subsidies. These include repayable contributions, low-interest loans, and loan guarantees for companies seeking to expand, modernize, or adopt clean technologies.

• ESSOR helps finance major investment projects that increase productivity and competitiveness. Projects can receive support for new equipment, plant expansions, and modernization initiatives. In some cases, feasibility studies and planning activities can also receive non-repayable contributions.

• Productivité innovation supports businesses in adopting Industry 4.0 technologies such as robotics, digital integration, and artificial intelligence. Many forestry firms have accessed this program to automate sorting lines, optimize production data, or improve quality control.

• Compétivert promotes the adoption of clean technologies that reduce carbon emissions and improve energy efficiency. Forestry companies installing biomass boilers, electrified equipment, or energy-saving systems can often combine Compétivert financing with other grants for a more robust funding package.

Investissement Québec is also a key partner in Indigenous-led forestry projects. A notable example includes the reopening of the Waswanipi sawmill, a partnership between Chantiers Chibougamau and the local Cree First Nation, financed partly through IQ’s ESSOR program.

These flexible financing tools make IQ an essential complement to Québec’s direct grant programs—especially for companies planning large, multi-phase capital projects.

Bioenergy, Carbon Reduction, and Circular Economy Initiatives

As part of Québec’s green transition, several initiatives support forestry companies that turn residues into energy or bio-based products. These programs target both environmental performance and economic diversification.

Forestry businesses can access grants and incentives for projects such as:

• Converting sawmill residues into biomass energy or biochar.

• Installing high-efficiency boilers and heat recovery systems.

• Developing biofuels and biochemicals from forest by-products.

• Implementing circular systems to reuse or recycle wood waste.

The province also collaborates with research clusters such as CRIBIQ (Consortium for Research and Innovations in Industrial Bioprocesses), which funds pilot projects in forest bioenergy and bioproduct development. Companies participating in CRIBIQ-led calls for projects can obtain up to $200,000 in matching grants to support research and demonstration.

These initiatives not only reduce greenhouse gas emissions but also help companies diversify income streams. As demand grows for renewable materials and clean energy, Québec’s forestry sector is well positioned to lead the transition toward a circular bioeconomy.

Federal Funding Programs for Québec’s Forestry Sector

In addition to provincial support, Québec forestry companies can benefit from a number of federal programs that target innovation, industrial transformation, and sustainability. These programs are often stackable with provincial funding and can dramatically improve a project’s financing structure.

Investments in Forest Industry Transformation (IFIT)

Administered by Natural Resources Canada, the IFIT program is a cornerstone of federal support for forestry innovation. It funds first-in-kind projects that demonstrate new technologies or products within the forest industry, helping companies commercialize innovative and sustainable solutions.

In Québec, IFIT has supported projects like:

• A fully integrated sawmill and wood pellet plant in Chapais that converts residual biomass into renewable energy.

• Cascades’ bio-based adhesive and bioproducts initiative in Cabano.

• Industrial-scale demonstrations of new biofuel and bioplastic processes developed in partnership with Québec research centers.

IFIT typically covers 20% to 50% of eligible costs, with contributions ranging from hundreds of thousands to several million dollars depending on the project size and innovation level.

For Québec companies pursuing significant modernization or diversification projects, IFIT remains a highly competitive and impactful funding option.

Green Construction Through Wood (GCWood)

The GCWood program, also managed by Natural Resources Canada, promotes the use of wood in construction to reduce emissions and support Canada’s net-zero goals. It funds demonstration projects and design work for innovative wood buildings, often in partnership with provincial initiatives like Programme d’innovation en construction bois.

Recent Québec projects have included:

• Support for mass timber housing developments by Chantiers Chibougamau.

• Funding for the design of tall timber towers in Montréal.

• Grants to Indigenous-led community construction projects using modern wood materials.

GCWood contributions can help companies involved in engineered wood, prefabrication, or modular building systems demonstrate their capabilities and gain visibility in growing markets.

Indigenous Forestry Initiative (IFI)

The Indigenous Forestry Initiative provides funding to enhance Indigenous participation in the forest economy. It supports business development, forest management, and innovation projects led by Indigenous communities and organizations.

In Québec, the program has funded dozens of initiatives, from reforestation and nursery projects to Indigenous-owned sawmills and biomass energy ventures. Grants typically range from $50,000 to $500,000, depending on project scale and outcomes.

The IFI encourages collaboration between Indigenous and non-Indigenous companies, promoting shared prosperity and sustainable land stewardship throughout Québec’s forest regions.

National Research Council Industrial Research Assistance Program (IRAP)

The NRC IRAP program helps small and medium-sized enterprises (SMEs) conduct R&D and commercialize new technologies. In the forestry sector, IRAP has supported projects involving automation software, AI optimization, and sensor-based process control.

Companies developing or implementing innovative technologies can receive advisory support and funding to accelerate their R&D and integration efforts. For smaller forestry manufacturers or technology developers in Québec, IRAP offers a bridge between research and real-world deployment.

ISED Strategic Response Fund

One of the newest federal funding tools relevant to Québec’s forest sector is the Strategic Response Fund (SRF), launched by Innovation, Science and Economic Development Canada (ISED).

The SRF is designed to provide rapid financial support for strategic industrial projects that protect jobs, strengthen supply chains, or advance innovation during periods of market volatility or transformation. For the forestry industry, this can include:

• Expansions or modernizations required to maintain export competitiveness.

• Projects responding to trade disruptions or supply shortages.

• Large-scale clean technology upgrades that align with federal climate and industrial priorities.

Funding through the SRF can take the form of repayable or non-repayable contributions, depending on project scope and impact. For Québec companies pursuing transformative initiatives—such as mill conversions, bioenergy investments, or automation critical to sustaining operations—the SRF offers a flexible mechanism to secure time-sensitive funding.

Its introduction marks a major addition to Canada’s industrial policy toolkit, ensuring strategic sectors like forestry remain resilient, innovative, and globally competitive.

How to Qualify and Apply for Forestry Grants in Québec

While each program has its own eligibility rules, successful applications generally share common features. Forestry businesses that secure funding tend to demonstrate:

• Clear alignment with program objectives, such as innovation, sustainability, or regional development.

• Strong project readiness, including technical plans, budgets, and partnerships.

• Quantifiable impact, whether in reduced emissions, improved productivity, or new job creation.

Preparing early is essential. Many programs open short application windows or operate on competitive rounds. Companies should gather feasibility studies, engineering reports, and letters of support before submission to show commitment and credibility.

Partnering with experienced grant consultants can also greatly improve outcomes. Experts help align project scopes with program criteria, prepare documentation, and manage compliance after approval. This not only saves time but also ensures that no available funding opportunity is missed.

Why Work with a Grant Consultant

Navigating Québec’s complex funding landscape can be challenging—especially for companies juggling day-to-day operations. A professional grant consultant provides strategic guidance to:

• Identify all relevant programs (provincial, federal, and sectoral).

• Optimize the project plan for eligibility and maximum financial leverage.

• Prepare compelling applications that highlight innovation and economic benefits.

• Manage post-approval reporting and maintain compliance.

For forestry companies planning large capital investments or innovation projects, expert support can significantly increase the likelihood of success—and shorten the time between idea and funding.

Conclusion

The future of Québec’s forestry industry lies in innovation, sustainability, and partnership. With the combined support of provincial and federal programs, companies across the province are retooling their operations, exploring bio-based products, and positioning themselves for global growth.

From the Programme Innovation Bois, which helps modernize mills and diversify products, to Investissement Québec’s financing tools for clean technology and productivity, to federal initiatives like IFIT, GCWood, and the new Strategic Response Fund, the opportunities for growth have never been greater.

That’s where working with grant experts like helloDarwin can make all the difference. Our team specializes in identifying the best funding opportunities for your specific industry, project goals, and region. We help you understand the requirements, prepare compelling applications, and manage submissions efficiently—so you can focus on growth instead of paperwork. Whether you’re looking to finance innovation, expand operations, adopt sustainable technologies, or invest in digital transformation, helloDarwin connects you with the right funding programs and partners to make it happen. If you want to accelerate your business goals and make sure no opportunity goes unnoticed, reach out today. Our experts are here to simplify the process, save you time, and help you secure the grants your organization deserves.