British Columbia’s forest industry is evolving rapidly in response to economic challenges, climate change, and sustainability goals. Thankfully, a wide array of grant and funding programs—provincial and federal—are available to help forestry businesses modernize, innovate, and thrive. These programs support everything from mill upgrades and clean technology adoption to Indigenous partnerships, circular economy initiatives, wildfire resilience, and reforestation efforts. In this comprehensive guide, we break down the key funding programs for forestry companies in B.C. and what they offer.
Provincial Programs Supporting B.C.’s Forestry Sector
British Columbia’s provincial government has introduced several funding initiatives to bolster innovation and sustainability in the forest sector. These programs focus on creating jobs, reducing environmental impact, and adding value to forest resources. Below are the major provincial programs and incentives available to forestry-related businesses:
BC Manufacturing Jobs Fund (BCMJF)
The BC Manufacturing Jobs Fund is a $180 million provincial fund designed to help manufacturers across B.C. modernize and grow, with a special emphasis on the forestry sector. Launched in 2023, this fund provides grants for capital projects that will diversify regional economies and create jobs, particularly in communities affected by mill closures or downturns. Key features include:
Focus on Forestry Innovation: While open to all manufacturing industries, BCMJF prioritizes projects that help forestry companies transition to sustainable, value-added products. The goal is to reduce reliance on old-growth logs by spurring new product lines (for example, engineered wood products, bio-products from wood waste, etc.). Projects that make innovative use of wood biomaterials or improve utilization of residual fiber are encouraged.
Funding Streams: The program offers two funding streams:
1. Project Readiness: Grants up to $50,000 (covering 50% of project costs) for final-stage business planning, feasibility studies, or technical assessments. This helps companies firm up plans for expansion, process upgrades, or new product development.
2. Capital Investment: Larger grants for implementation of manufacturing projects, ranging from a minimum of $100,000 up to a maximum of $10 million per project. This can cover up to 20% of eligible project costs (which implies total project sizes from roughly $500,000 to $100+ million). Capital projects might include facility expansions, new equipment, technology adoption, or facility retrofits (even repurposing idle mill sites). Funding is typically paid in stages as milestones are met.
Eligibility: Applicants must be for-profit companies (including Indigenous-owned enterprises) registered in B.C. and operating in the manufacturing sector. Forestry companies such as sawmills, pulp and paper mills, engineered wood manufacturers, biomass processors, and other value-added wood product producers are prime candidates. Businesses need to be in good financial standing and have an existing operational track record. Projects must be located in B.C. and demonstrate benefits like long-term jobs, economic diversification, and alignment with sustainability goals.
Program Goals: Beyond individual projects, BCMJF’s broader goals are to boost regional economies, support Indigenous participation in manufacturing, drive clean growth and sustainability in forestry, and attract additional investment. By covering a portion of project costs, the fund helps companies leverage other funding sources (private capital or federal programs) to multiply the impact.
Success Stories: As of 2025, the BCMJF has been highly impactful in the forestry sector. For example, grants have helped forest product companies install modern equipment and reduce emissions. A sawmill in Salmon Arm received funding to install a new drying kiln, allowing it to process different wood species and cut its greenhouse gas emissions by about 10%. Major firms like Tolko Industries received support (e.g. $8 million for a mill upgrade) to expand production of value-added wood products, while smaller family-owned mills obtained funds to modernize and protect local jobs. Early results show over $97 million committed to B.C. forestry manufacturers, leveraging more than $600 million in private investment and helping preserve or create thousands of jobs in forestry communities.
Overall, the BC Manufacturing Jobs Fund is a cornerstone provincial program for any B.C. forestry company looking to invest in modernization, product diversification, or new technology. Whether you’re upgrading an existing sawmill, launching a biomass utilization facility, or setting up an engineered wood production line, this fund can provide significant capital support to turn ambitious plans into reality.
CleanBC Industry Fund
British Columbia’s climate action plan, CleanBC, includes funding to help industries reduce their carbon footprint. The CleanBC Industry Fund (CIF) is a program that reinvests provincial carbon tax revenue into projects that cut greenhouse gas (GHG) emissions from large industrial operations. For forest product companies—especially pulp and paper mills, pellet plants, and big sawmill operations—this fund is a key opportunity to secure grants for energy efficiency and emissions-reduction projects. Notable aspects of the CleanBC Industry Fund:
Purpose: The CIF’s mission is to support industrial decarbonization. It funds projects that reduce emissions through fuel switching (e.g. from fossil fuels to electricity or bioenergy), energy efficiency upgrades, electrification of equipment, methane capture, carbon capture utilization and storage (CCUS), and other clean technologies. This not only helps meet climate targets but often improves operational efficiency.
Funding Streams: The program has been offered in multiple streams or intakes. As of 2025, there are four main streams (though not all may run every year):
1. Emissions Performance (EP): For deployment of commercially-proven technologies that cut emissions. These are typically capital projects at facilities (for example, upgrading a pulp mill recovery boiler to a more efficient one, or installing an electrostatic precipitator and equipment to reduce biomass boiler emissions). EP projects often receive multi-million dollar grants, covering a portion of costs (exact cost-share varies; past rounds have seen roughly 30–50% cost coverage).
2. Innovation Accelerator (IA): For pilot projects and trials of innovative, pre-commercial clean technologies at industrial sites. This is geared toward demonstrating new solutions (for instance, a pilot installation of a novel bioenergy system or carbon capture process at a mill). IA grants help shoulder the risk of trying cutting-edge tech (usually tech readiness level 7–9).
3. Feasibility Studies (FS): Smaller funding awards to support engineering studies or feasibility analyses of potential emissions-reduction projects. A forestry company might use this to study, say, the feasibility of electrifying a lumber dry kiln or installing a biomass gasification system. Getting funding for studies helps companies develop strong business cases for future capital projects.
4. Industrial Electrification (IE): This was a special stream (piloted in 2024) co-run with BC Hydro, targeting projects that require new electrical grid connections or upgrades so that facilities can switch from gas/diesel to clean electricity. For example, a mine or mill converting large machinery to electric power could get support for the infrastructure and equipment needed. The IE stream aligns with B.C.’s push to use hydroelectric power to cut industrial emissions.
Scale of Impact: Since launching in 2019, the CleanBC Industry Fund has invested over $240 million in industrial projects province-wide. These projects are expected to eliminate over 9 million tonnes of CO₂-equivalent emissions over ten years. The fund has supported dozens of initiatives, leveraging significant co-investment from industry. Each year new batches of projects are approved; for instance, an intake provided $35 million in 2025 for projects across sectors including forestry.
Forestry Examples: Many B.C. forest companies have benefited. Pulp and paper mills, which are large emitters (due to power boilers, lime kilns, etc.), have received grants to electrify equipment and improve energy efficiency. Major firms such as Canfor Pulp and West Fraser have secured funding for projects like electrifying pulp mill pumps and compressors, upgrading to more efficient motors, and capturing waste heat. Sawmills have obtained support to install low-emission bioenergy systems (burning bark or wood residues to produce heat instead of using natural gas) and to upgrade drying kilns with better heat recovery and controls. These upgrades reduce fuel consumption and GHG emissions while often lowering operating costs over time.
Eligibility: The CIF is primarily aimed at large industrial operations that are covered under B.C.’s greenhouse gas emissions regulatory framework (the output-based pricing system). In practice, this includes facilities like pulp mills, panelboard plants, and some sawmills or pellet plants, especially those emitting above a certain threshold of CO₂ annually. Applicants usually must be the facility owners/operators, and projects must achieve verifiable GHG reductions in B.C. The fund encourages projects that also support local jobs or have co-benefits (like reducing air pollutants or improving competitiveness).
Application and Funding Process: The CleanBC Industry Fund normally runs annual calls for proposals. Companies propose projects and quantify the expected emissions cut. Funding is awarded on a competitive basis, often proportional to the amount of CO₂ reduced (ensuring cost-effective climate benefits). Awards can range widely; some projects have received over $5–7 million each, while feasibility studies may get tens of thousands. Importantly, this funding is non-repayable (essentially a grant), which improves the return on investment for costly upgrades that might otherwise be hard to justify.
For a forest sector business aiming to upgrade to cleaner technology—for example, installing an electric shredder in a mill yard instead of a diesel one, or adding a condensing economizer to capture waste heat from a boiler—the CleanBC Industry Fund is a prime program to consider. It effectively rewards companies for reducing emissions and helps pay for the capital improvements needed to achieve those cuts. In addition to reducing carbon taxes and energy costs, participating companies can market themselves as CleanBC champions, which is great for industry reputation in an era of sustainable sourcing.
Forest Enhancement Society of BC (FESBC)
The Forest Enhancement Society of BC (FESBC) is a unique provincial funding vehicle focused on improving forest health and resilience. It operates a grant program that supports projects on Crown (public) forest lands, aligning with key sustainability and climate objectives. FESBC funding is highly relevant for initiatives that involve wildfire risk reduction, reforestation, habitat improvement, and innovative use of low-value wood fiber. Here’s what forestry stakeholders should know:
Mandate: Established in 2016, FESBC’s mandate is to advance environmental stewardship of B.C.’s forests. In practice, this means funding activities that make forests healthier, safer, and more productive for the future. Five core purposes guide FESBC projects:
Preventing & Mitigating Wildfires: Projects that reduce wildfire hazards, such as thinning dense stands near communities, removing forest fuel accumulations, or creating fire breaks.
Improving Damaged or Low-Value Forests: Includes reforestation or rehabilitation of forests affected by wildfires, pests (like pine beetle infestations), or historic logging that left understocked areas. It can fund tree planting in areas where natural regeneration or mandatory replanting is insufficient.
Improving Wildlife Habitat: Initiatives to enhance habitats for important wildlife species (e.g., restoring ungulate winter ranges, creating habitat structures, etc.). This ties into ecological sustainability.
Supporting Use of Leftover Fibre: Perhaps most relevant to forest industry innovation, FESBC funds projects that utilize residual wood fiber from harvest or sawmilling that would otherwise be wasted or burned. This could involve gathering slash piles or roadside debris and turning them into useful products like wood chips for pulp, pellets for bioenergy, compost, or biochar.
Reducing Greenhouse Gases from Forests: Projects that achieve carbon benefits, for example by avoiding open burning of slash (thus preventing CO₂ emissions), or by sequestering carbon through planting trees or producing long-lived wood products from low-value wood.
Project Examples: Over the past decade, FESBC has invested in 400+ projects across B.C. Some examples:
– Wildfire Fuel Management: In many interior and coastal communities, local governments and First Nations have received FESBC grants to thin trees and clear brush in the wildland-urban interface, reducing fire risk to homes. This creates jobs for forestry crews and contractors.
– Slash Recovery for Bioenergy: Instead of burning logging debris piles, companies have partnered with FESBC to truck that material to pellet mills or bioenergy facilities. This not only cuts emissions from burning but also supplies feedstock for renewable energy, supporting the circular economy.
– Reforestation and Rehabilitation: FESBC has funded the planting of millions of trees on land that was not legally required to be replanted (such as areas burned in wildfires or old cutblocks where the licensee is no longer around). By doing so, carbon is sequestered and future timber supply is enhanced. For instance, projects in the Cariboo and Kootenay regions planted seedlings in forests devastated by the mountain pine beetle outbreak and subsequent fires.
– Innovative Wood Product Initiatives: Some grants went to pilot projects that create products from low-quality timber. For example, an Indigenous-led venture on Vancouver Island utilized waste wood to produce a value-added engineered wood product, with FESBC support. Other projects have explored making biochar from forestry residues (biochar can store carbon in soil and improve soil health) and extracting biochemical from wood waste.
Funding Process: FESBC funding has typically been application-based and often coordinated with provincial priorities. In some years, the Society issues targeted intake calls. For the 2025–2027 period, FESBC launched specific funding intakes focused on Fibre Utilization and Wildfire Risk Reduction. Applicants (which can be a range of entities: community forest organizations, First Nations, forest tenure holders, municipalities, or companies) submit proposals outlining their project, costs, and public benefits. The funding provided is usually a grant (non-repayable) covering a portion or sometimes all of the project’s cost, depending on public benefit. Projects may span up to 2-3 years.
Collaboration and Partnerships: FESBC strongly encourages partnerships, especially with Indigenous communities. Many FESBC projects are First Nations-led or involve Indigenous businesses contracting the work. This builds capacity and economic opportunities for Indigenous peoples in forestry. The Society works closely with the B.C. Ministry of Forests and the BC Wildfire Service to align projects with regional needs (for instance, ensuring a fuel management project fits into the local wildfire protection plan). They also coordinate with industry—like timber licensees—so that fiber recovery projects complement harvesting operations.
Impact on Industry: For forestry businesses, FESBC can provide funding to undertake activities that have environmental benefits but might not yield immediate profit. For example, a logging contractor could get FESBC funding to haul out slash for utilization, offsetting the cost of that extra work. Sawmills or pellet plants might collaborate on projects to secure more fiber supply from debris that was previously burned as waste. Over time, these initiatives improve the sustainability profile of the industry, create additional raw material streams (supporting bioenergy and bioproduct businesses), and contribute to maintaining social license to operate by addressing concerns like wildfire and climate change.
In summary, the Forest Enhancement Society of BC is a valuable resource to tap for projects that align forest industry operations with broader environmental and climate goals. If you have a project idea – say, using logging waste to produce a new bio-product, or thinning a forest stand and wanting to utilize the removed material – FESBC could co-fund it. The end results are win-win: better protected communities, healthier forests, more complete use of each tree harvested, and a reduction in carbon emissions.
Other B.C. Forestry-Specific Incentives and Initiatives
In addition to the major programs above, there are several other provincial initiatives and incentives that forestry companies in B.C. should be aware of:
Mass Timber Demonstration Program (MTDP): Recognizing B.C.’s leadership in engineered wood and mass timber construction, the provincial government created the MTDP to encourage innovative wood buildings. This program offers funding (grants up to ~$500,000) to building developers or design teams who choose to showcase mass timber or engineered wood products in their projects. While the direct applicants are often architects or builders, the program indirectly benefits engineered wood manufacturers (like CLT, glulam, and LVL producers) by expanding the market for these products. Several demonstration buildings (from schools and offices to multi-family residential buildings) in B.C. have been supported, proving out advanced wood building techniques. Forestry businesses can leverage this by promoting their products for such projects or even partnering in proposals.
Forestry Innovation Investment (FII) and Wood First Initiatives: FII is a provincial agency that supports market development and innovation for wood products. Through its Wood First program, it funds activities that promote the use of wood in construction and develop new wood products or technologies. For example, FII provides funding to industry associations and research projects that open new markets (like promoting B.C. wood in Asia) or that demonstrate new applications (such as mass timber engineering research). While not a grant program for individual companies per se, FII’s initiatives help forestry manufacturers by building demand and by supporting R&D and commercialization. If you have a collaborative project (say, developing a new engineered wood product or a wood-based biofiber material), FII might be a partner or funding source to explore.
B.C. Hydro Energy Efficiency Incentives: Many B.C. sawmills and pulp mills have taken advantage of BC Hydro’s industrial programs which offer incentive rebates for energy-efficient equipment. For instance, BC Hydro’s programs may cover a portion of costs for upgrading to high-efficiency motors, optimizing compressed air systems, installing variable frequency drives, or implementing heat recovery systems in a mill. These incentives are not forestry-specific (they’re open to all industries), but given that forest product facilities are often energy-intensive, the savings can be substantial. Participating not only lowers electricity bills but also complements the goals of reducing emissions.
Innovative Clean Energy (ICE) Fund & Clean Tech Grants: The ICE Fund is a B.C. government fund that supports development and demonstration of clean energy technologies. Over the years it has co-funded projects including bioenergy and biofuel initiatives. Forestry-related examples include pilot plants that convert wood waste to biofuels or demonstration of new biomass energy systems. Additionally, in 2021 the province (with federal and private partners) launched the B.C. Centre for Innovation and Clean Energy (CICE). CICE provides grants to accelerate clean tech solutions, and notably in 2023 it invested $2.6 million specifically in forest-residue management innovations. This funded a handful of projects aimed at turning wood waste (logging slash, sawmill residues) into value-added products or energy, thereby reducing burning and wildfire risk. Among the selected projects were partnerships involving First Nations and companies developing biochar production, torrefaction of wood (to create a coal substitute), and new ways to collect and process forest biomass. For forestry startups or tech developers (e.g., those working on biochar, biomass energy, or biochemicals from wood), such clean energy innovation funds are a crucial source of capital to get technologies off the ground in B.C.
Tax Credits for Manufacturing and R&D: While not specific to forestry, B.C. offers tax incentives that many forestry companies utilize. Manufacturing and processing machinery is eligible for provincial sales tax (PST) exemptions, which effectively reduce the cost of purchasing new mill equipment. On the innovation side, companies engaging in research and development can benefit from the Scientific Research & Experimental Development (SR&ED) tax credit program – a federal incentive with a B.C. top-up. Through SR&ED, companies can get tax credits or refunds for a portion of their R&D expenditures, such as developing a new pulp process, experimenting with bio-based adhesives, or prototyping a new sawmilling optimization software. This indirectly funds innovation by lowering the net cost of those projects. Additionally, the federal government recently introduced Clean Technology Investment Tax Credits, which can apply to certain clean energy equipment that a mill might install (for example, equipment for carbon capture or for producing green hydrogen from wood waste might qualify for a 30% tax credit on the investment).
Rural Development and Diversification Funds: B.C. has periodically offered programs like the Rural Economic Diversification and Infrastructure Program (REDIP) (and its predecessors) that provide grants for projects generating economic benefits in rural communities. In forestry towns hit by mill closures, these funds have helped establish new industries or repurpose facilities. For instance, a community might get funding to develop a value-added wood production workshop or a pellet plant to employ displaced workers. If you’re involved in a community-driven forestry enterprise or value-added venture, keep an eye on such programs. They often have application intakes and can provide capital for facilities, equipment, or training that aligns with local economic adjustment strategies.
In essence, beyond the headline programs, B.C. offers a supportive ecosystem for forestry innovation. Sawmills and wood product companies can mix and match these supports: a major upgrade could get a grant from BCMJF, plus a CleanBC incentive for the emissions-reducing component, plus an energy efficiency rebate from BC Hydro, and then claim SR&ED credits for any novel technology development involved. The patchwork of funding and incentives significantly improves the business case for investing in modern, sustainable practices.
Indigenous Forestry Grants and Partnerships in B.C.
Indigenous peoples play a crucial and growing role in British Columbia’s forest sector. There are specific funding programs and partnership opportunities aimed at supporting Indigenous-led forestry businesses, joint ventures, and community forestry initiatives. These not only advance economic reconciliation but also infuse traditional knowledge and community values into forest management. Here are key Indigenous-focused forestry funding avenues in B.C.:
Indigenous Forestry Initiative (Federal)
The Indigenous Forestry Initiative (IFI) is a federal program (administered by Natural Resources Canada) dedicated to providing funding for the economic development of Indigenous peoples in forestry. While federal in scope, it has supported many projects in B.C. where a large number of First Nations are engaged in forestry. Key points about IFI:
What IFI Funds: The program supports a wide spectrum of Indigenous-led forestry projects. This can range from business development and entrepreneurship in the forest sector, to workforce training, to participation in forest management and conservation. Some typical activities include:
Developing and expanding Indigenous-owned forestry businesses (e.g., logging companies, portable sawmills, value-added wood product manufacturers, or agro-forestry ventures).
Engaging Indigenous communities in forest management planning and policy development alongside government (ensuring Indigenous values and knowledge inform how forests are managed).
Supporting feasibility studies and planning for Indigenous partnerships in forestry (for example, a First Nation exploring a joint venture in a wood processing facility or bioenergy plant).
Skills development and training programs for Indigenous youth and workers to prepare for jobs in forestry and forest products manufacturing.
Projects exploring forest bioeconomy opportunities on Indigenous lands – such as harvesting non-timber forest products, developing bioenergy for the community, or creating carbon offset projects through improved land management.
Funding Types and Amounts: IFI provides both small grants and larger contribution funding. Often, there are two streams: Grants up to $50,000 (these are usually for community engagement, planning, or participation in policy – essentially seed funding to get started or to help communities be at the table in forest management discussions), and Non-repayable Contributions for bigger projects (these can be well above $50k, depending on project scope – some projects have received in the hundreds of thousands). A single project’s IFI contribution is typically a portion of the total cost, so applicants often combine it with other funding or their own equity.
Eligibility: To access IFI, the project must be led by an Indigenous organization or community (or at least in partnership with one). Eligible recipients include First Nation or Métis communities or their economic development corporations, tribal councils, Indigenous businesses (majority Indigenous-owned), and Indigenous forestry associations. Non-Indigenous organizations can participate as partners only if an Indigenous entity is driving the project. This encourages collaborations like partnerships between a First Nation and a forestry company to create a new venture or training program.
Notable Outcomes in B.C.: Under IFI, dozens of B.C. First Nations have pursued projects. For example:
Some communities used funding to develop Community Forest enterprises – covering initial planning and business setup to manage a local forest tenure sustainably and for community benefit.
IFI supported the purchase of wood processing equipment for Indigenous-owned businesses – such as a First Nation-owned sawmill upgrading its machinery to increase production of specialty lumber, or a new facility to produce wood pellets or shingles.
Joint ventures between First Nations and established forest product companies have been facilitated through business planning grants. These ventures often involve things like a First Nation taking an equity stake in a mill or co-owning a logging operation, leading to long-term revenue and employment.
On the renewable energy side, some remote Indigenous communities leveraged IFI funds to utilize local wood waste for bioenergy, reducing reliance on diesel generators and creating local jobs in fuel supply.
Importantly, many IFI projects have a capacity-building element – whether sending Indigenous youth to forestry technical training, or hosting workshops on how to get certified in sustainable forestry, etc., thereby building the local skill base.
Application Considerations: IFI calls for proposals are usually announced (often annually or biannually). Projects are assessed for their economic benefits (jobs, revenue for the community), level of Indigenous involvement and leadership, and how they contribute to sustainable forest management. Partnerships with non-Indigenous industry or government can strengthen proposals if they show knowledge-sharing and long-term support. Because demand can exceed available funds, having a clear plan and community buy-in is essential.
For Indigenous communities in B.C. looking to increase their forestry footprint—whether through owning forest tenures, launching processing facilities, or developing new forest-related products—the Indigenous Forestry Initiative is a key funding source. It reduces financial barriers and helps catalyze projects that align with community values and aspirations.
B.C. Indigenous Forest Bioeconomy Program
At the provincial level, B.C. launched the Indigenous Forest Bioeconomy Program (IFBP) in recent years to empower Indigenous partners in leading the growth of a modern bioeconomy. The “bioeconomy” in this context refers to innovative uses of renewable biological resources (like wood and biomass) to create value-added products, energy, and materials. This program acknowledges that Indigenous communities are keen to participate in emerging opportunities beyond traditional timber harvesting. Here’s what the IFBP entails:
Program Purpose: The IFBP aims to build community resilience and economic diversity for Indigenous communities through forestry innovation. By focusing on the bioeconomy, it encourages projects that go beyond sawlogs and lumber into areas like bioproducts, non-timber forest products, and other wood-based innovations. Examples of what “forest bioeconomy” can include are:
Advanced wood-based manufacturing (e.g., engineered wood components, modular housing kits using local timber).
Production of biomaterials or biochemicals from wood – such as extracting natural resins, producing cellulose fiber products, etc.
Development of eco-friendly consumer products derived from forest resources (anything from essential oils and medicinal products from forest plants, to wood-based textiles or biodegradable packaging made from wood fiber).
Innovative energy projects like community-scale biomass energy that uses local forest residues, or production of wood pellets, biochar, or biofuels.
Initiatives around carbon storage or climate services – for example, projects that create carbon credits via improved forest management, giving communities a stake in climate finance.
Funding Offered: The program provides grant funding to eligible Indigenous applicants. It has operated on an annual cycle (applications for each fiscal year). While specific funding per project can vary, many of the IFBP-supported projects have been in the tens of thousands up to low hundreds of thousands of dollars range, enabling planning and implementation of small-to-medium scale projects. The program often can fund a significant portion or all of a project’s cost if it meets the objectives. It’s flexible to support early-stage ideas (like feasibility studies or business plans for a bioenterprise) as well as implementation (purchasing equipment or launching a venture).
Eligibility and Access: The IFBP is open to Indigenous individuals, First Nation governments/bands, Métis organizations, and Indigenous businesses or partnerships in B.C.. It’s quite inclusive – even individual Indigenous entrepreneurs with a solid proposal in forest-based business can apply. The important criterion is that the project must benefit Indigenous people and be led by them. In the past few years, this program was delivered in collaboration with Indigenous partners and had an application guide outlining priorities.
Program Objectives: IFBP aligns with the national Forestry Bioeconomy Framework for Canada, but grounds it in Indigenous participation. The objectives include:
Fostering innovation and partnerships that involve Indigenous communities in the bioeconomy supply chain.
Creating economic opportunities and jobs in Indigenous and rural communities by broadening the range of forest products and enterprises.
Supporting Indigenous self-determination and interests in natural resources – meaning communities choose projects that fit their development vision, whether that’s culturally important uses of forest resources or high-tech manufacturing.
Success Stories: Through IFBP funding, numerous Indigenous-led projects in B.C. have taken off. A few illustrations:
A First Nation on Vancouver Island developed a small-scale facility to manufacture wooden briquettes and biochar from forestry slash, creating local employment and a product that can be sold or used for soil enhancement (biochar) and heating (briquettes) – a great circular economy example.
Some communities used grants to explore non-timber forest products – one project mapped and developed a business plan around harvesting and selling wild mushrooms and medicinal plants from their forest, adding an income stream while preserving traditional practices.
An interior B.C. Indigenous company obtained funding to prototype value-added wood products like pre-fabricated tiny home components using pine beetle-killed timber. This combined addressing a forest health issue (dead wood utilization) with creating affordable housing solutions.
Training and capacity building are often woven in – for instance, involving community members in the project execution, getting technical training on new equipment, or learning business skills, thereby building human capital along with the business.
The Indigenous Forest Bioeconomy Program is a sign of B.C.’s commitment to ensuring Indigenous communities are at the forefront of forest sector transformation. It’s about moving up the value chain and not just being suppliers of logs. For Indigenous entrepreneurs or leaders with ideas on using forest resources in novel, sustainable ways, IFBP can provide that crucial startup push.
Community Forests and Partnerships
While not a traditional “grant program,” it’s worth noting the community forest and First Nations woodland tenure opportunities in B.C., as they often come with supportive funding or capacity development initiatives:
Community Forest Agreements (CFAs): These are area-based forest licenses that give communities (often a partnership of a municipality and local First Nation, or a cooperative) rights to manage local forests for long-term benefits. The province has expanded CFAs over the years, and many include Indigenous partners. Alongside these licenses, the government has offered start-up funding or extension services to help communities plan and get their community forest operations running. If a community forest needs to invest in small-scale milling or recreation infrastructure or undertake innovative silviculture, there may be provincial rural development grants available to support those projects.
First Nations Woodland Licences (FNWLs): These are forest tenures exclusively for First Nations, allowing them to manage and harvest timber on areas of Crown land with a long-term, renewable license. Establishing an FNWL often requires funds for planning, inventories, and initial operations. In some cases, the B.C. government provided transition funding or preferential access to timber to ensure success. Once operating, many First Nations reinvest revenues into local priorities and can seek funding (like FESBC or IFI) to augment their forest management with community projects (e.g., restoring riparian zones or cultural sites).
Revenue-Sharing and Capacity Programs: Through agreements like the Forest Consultation and Revenue Sharing Agreements (FCRSA) and others, B.C. shares a portion of stumpage revenue with First Nations, which can be re-invested into community forestry initiatives. Additionally, organizations such as the First Nations Forestry Council in B.C. have programs (often funded by the province or federal government) to train Indigenous forestry professionals and build governance capacity for managing forest resources.
Industry Partnerships: Many forestry companies in B.C. have formed partnerships with Indigenous communities, from joint venture sawmills to agreements on employment and contracting. While those are commercial arrangements, they are sometimes facilitated by public funding programs. For example, Western Economic Diversification (now PacifiCan) and provincial funds have in the past supported partnership mills or manufacturing facilities (helping finance equipment when a new partnership venture is created). Indigenous partners can leverage programs like IFI or IFBP, and the industry partner might bring capital or expertise – together making a strong case for funding to external programs.
In summary, Indigenous grants and programs in B.C. are integral to the future of forestry. They are creating pathways for First Nations and Métis communities to be not just stakeholders, but owners, innovators, and decision-makers in forestry. If you are an Indigenous community member or a company looking to collaborate with a First Nation, it’s wise to become familiar with these targeted programs. They can provide the seed money, technical support, or partnership framework that turns an idea into a thriving, sustainable enterprise grounded in the local community.
Federal Funding Programs for Forestry Innovation and Sustainability
Beyond British Columbia’s programs, the Government of Canada offers several funding initiatives that forestry businesses in B.C. can tap into. These federal programs often seek to drive nation-wide objectives: technological innovation, greener industrial processes, and diversification of forest products and markets. They complement provincial efforts and can significantly boost large projects or cutting-edge developments. Here are the key federal funding programs relevant to B.C.’s forest sector:
Investments in Forest Industry Transformation (IFIT)
One of the flagship federal programs for forestry innovation is IFIT – Investments in Forest Industry Transformation. Administered by Natural Resources Canada (Canadian Forest Service), IFIT provides financial support to commercial-scale projects that implement novel technologies and processes in the forest sector. If you’re a mill owner looking to deploy a first-in-kind technology or a startup with a groundbreaking wood product needing a commercial demonstration, IFIT is designed for you. Key details:
Objective: IFIT aims to bridge the gap between R&D and commercialization. Canada’s forest industry historically focused on traditional products (lumber, newsprint, etc.), and IFIT was conceived to help mills pivot toward innovative, high-value, or low-carbon products. By funding “demonstration” projects, it helps de-risk new technology adoption. The ultimate goal is a more competitive and diversified forest sector, producing new products (biofuels, biochemicals, advanced building materials, etc.) and generating new revenue streams, especially those that contribute to a low-carbon economy.
What It Funds: The program supports capital investment projects at existing or new forest product facilities, as well as related studies. Examples of projects that IFIT has funded in past rounds:
A pulp mill installing a system to extract lignin from its black liquor stream. The extracted lignin can be sold for use in adhesives or carbon fiber production, creating a new revenue source from a process by-product.
A sawmill adding equipment to produce cross-laminated timber (CLT) panels or other engineered wood products, thereby transforming into a value-added manufacturing facility for the mass timber construction market.
A company building a demonstration plant to produce biofuel (like renewable diesel or ethanol) from woody biomass such as sawmill residues. IFIT funds helped cover the cost of scaling the technology from pilot to commercial demonstration.
Projects that create composite materials or bioplastics using wood fiber, or that recover and purify chemicals from pulping processes for resale.
In some cases, completely new facilities (new entrants) that embody transformative tech, e.g., a nanocellulose production facility using kraft pulp as input, or a torrefied wood pellets plant for export markets.
Funding Amount and Type: IFIT typically offers non-repayable contributions (grants) up to a certain maximum per project. In recent IFIT waves, the maximum contribution was around $10 million per project, though in special cases it has gone higher (some intakes allowed up to $20 million). Importantly, IFIT generally covers no more than 50% of the total project cost, expecting the company to finance the rest (through equity, loans, or other funding programs). This cost-share ensures industry commitment and also enables more projects to receive support. There are also smaller contributions available for studies (e.g., engineering design or market studies) related to a potential transformative project, which can help prepare for a future implementation.
Eligibility: To qualify, you must be a for-profit company in Canada’s forest sector. This includes existing forest product firms operating mills (pulp, paper, panels, lumber, etc.) or new companies entering the sector with an innovative project. Collaborations are allowed (e.g., a tech provider joint venture with a mill, or a consortium including academia), but a for-profit business needs to be the lead applicant and ultimately implement the project. The project itself must demonstrate groundbreaking or highly innovative technology for Canada – typically something not already in widespread use domestically. It should result in a new or significantly improved product, or a new process that improves efficiency or environmental performance in a big way.
Impact in B.C.: B.C. companies have been among the most active participants in IFIT. For instance:
West Fraser Timber (a major company) received IFIT support to add bioenergy and biochemical recovery features to its mills – including extracting lignin at a pulp mill in Hinton and producing wood pellets from sawmill residues, to maximize value from wood.
Kalesnikoff Lumber, a value-added manufacturer in the West Kootenay region, was awarded about $3 million from IFIT toward establishing a new mass timber (CLT and glulam) production facility – helping the company become a leading mass timber supplier while creating local jobs.
A smaller B.C. innovator was funded to demonstrate a mobile pellet plant that can be moved to forest sites to densify slash into fuel pellets on the spot.
IFIT has also funded technology like CRIBE’s biomaterials pilot or FPInnovations spin-off projects which happen in B.C., like development of nanocrystalline cellulose applications.
Environmental and Economic Benefits: Projects funded by IFIT often have significant environmental upsides: reducing waste (through full utilization of wood components), lowering greenhouse emissions (by creating renewable energy or more efficient processes), and moving towards a circular economy in forestry. Economically, these projects help mills stay competitive globally by diversifying their products. Instead of being solely tied to volatile lumber or paper markets, a mill could have multiple product streams – making it more resilient and potentially operating year-round even during downturns in one product line.
If your company has a bold idea – say, producing textile fibers from wood pulp or turning sawdust into bio-composite decking material – IFIT is the program that might make it financially feasible. The application process is rigorous (detailed proposals, proof of technical viability, business plans), but the payoff is a significant capital injection that can bring transformative ideas to life. IFIT has multiple rounds (so far there have been several waves since 2010), and it continues to be renewed due to the success of past projects in creating world-leading innovations in Canada’s forest sector.
Strategic Innovation Fund (SIF) and Strategic Response Fund (SRF)
For very large-scale projects or those that don’t neatly fit into sector-specific programs, Canada offers the Strategic Innovation Fund (SIF). SIF is a broad federal funding program under Innovation, Science and Economic Development Canada (ISED) that supports high-impact projects across many industries, including advanced manufacturing, clean technology, and natural resources. In late 2025, the government announced that SIF would be refocused and enhanced as the Strategic Response Fund (SRF), with a special emphasis on industries facing global trade challenges (like tariffs) and on critical sectors. Here’s what forestry companies should know:
SIF Overview: The Strategic Innovation Fund has been around since 2017, providing support through various streams. It offers large contributions (often ranging from $10 million up to hundreds of millions for mega-projects) to projects that are “transformative” — meaning they significantly boost innovation, create a lot of jobs, strengthen supply chains, or position Canada at the forefront of a field. SIF funding can sometimes be repayable (like an interest-free loan), sometimes non-repayable grant, or a mix (partially repayable), depending on the nature of the project and negotiations. In forestry, SIF hasn’t been as commonly tapped as IFIT, but it has been used in related sectors (for example, large bioproduct or biochemical plants, or high-value manufacturing that could include things like factory-built housing using wood components).
Strategic Response Fund (SRF): In response to economic pressures such as U.S. import tariffs on Canadian goods (softwood lumber being a prime example) and supply chain disruptions, Canada is launching the SRF with $5 billion in funding. The SRF is essentially an extension of SIF principles but aims to be faster and more targeted to pressing needs. For the forest sector, this is highly relevant because:
Lumber producers have faced recurrent U.S. tariffs that cut into competitiveness. SRF could support mills in retooling or upgrading to maintain viability despite trade barriers.
It specifically lists “lumber” as a strategic sector alongside steel, aluminum, automotive, etc., which are disproportionately impacted by tariffs or trade actions.
The fund priorities include preserving industrial capacity and jobs when markets are challenged, and helping companies pivot to new markets or products. In forestry terms, that could mean helping a mill shift from producing standard commodity lumber (hit by tariffs) to specialty engineered wood products or treated wood that might bypass some tariffs or fetch higher value in other markets.
Funding Criteria: Projects likely to get SIF/SRF support in forestry would be big initiatives – for instance, building a new manufacturing line for a novel forest product, or a major energy transition project at a mill (like a complete fuel-switching of a mill’s energy system to biomass or hydrogen, which could be tens of millions of dollars). The minimum ask for SRF is expected to be around $10 million, implying total project costs of $20 million or more. Companies will need to show how the project saves or grows jobs, keeps the industry competitive internationally, and ideally aligns with future-oriented areas (automation, low-carbon economy, Indigenous participation, etc.).
Examples of What Could Be Funded: While new, one can envision some forestry scenarios:
A pulp and paper company converting a paper machine to produce packaging or tissue products (diversifying from declining newsprint markets to growth markets) – a large capital project that protects jobs could attract funding.
A consortium building a first-of-its-kind biorefinery in B.C. to produce bio-based chemicals or fuels from wood, requiring >$100M investment – SIF/SRF could contribute a substantial portion to make it happen in Canada versus elsewhere.
A lumber company establishing a massive state-of-the-art mill using AI and robotics, which will be globally competitive and create hundreds of jobs in a region – if it pushes the envelope of technology, it could be eligible.
A joint venture between a First Nation and a major industry player to create a new engineered wood production facility on Indigenous land, combining economic reconciliation with innovation – the strategic importance and partnership aspect could draw support from SIF.
Process: SIF (and SRF) is less of a standard application program and more of a negotiation – companies often engage with ISED to present their project, and if it fits, a tailored contribution agreement is developed. The evaluation looks at the innovation merits, economic benefits (GDP contribution, export potential), and public good (like environmental improvement, regional development, etc.).
For forestry companies in B.C. with visionary, large-scale projects, the Strategic Innovation Fund/Strategic Response Fund is a vehicle to obtain major funding beyond what sector-specific programs can offer. It can complement other funds (for example, a project might combine IFIT and SIF, or provincial funds and SIF). Keep in mind, SIF/SRF can involve some repayment, but the terms are usually generous (e.g., repayable only if project meets success metrics, or low-interest long-term loans). This kind of support can tip the balance for projects that have high upfront costs and longer-term paybacks.
Green Construction Through Wood (GCWood) Program
GCWood stands for Green Construction through Wood, a federal initiative that aligns with Canada’s push to encourage the use of wood in construction as a climate-friendly alternative to more carbon-intensive materials (like concrete and steel). Managed by Natural Resources Canada, GCWood provides funding specifically to demonstration projects that showcase innovative uses of wood in buildings and infrastructure. While its direct beneficiaries are typically developers or design teams, the program is very relevant to forestry in B.C. because it helps expand markets for advanced wood products (mass timber, etc.) produced by B.C. companies.
Goal: The goal of GCWood is to accelerate adoption of mass timber and wood-building systems by proving they are viable, safe, and beneficial. By funding a portion of project costs, it reduces the risk for early adopters of wood technology in construction, such as tall wood buildings, long-span wood bridges, or hybrid structures.
Funding Scope: GCWood offers non-repayable contributions (grants) for selected building or infrastructure projects. The funding can cover costs like design optimization, engineering analyses, code approvals, and the incremental costs of using wood vs. a traditional material. The typical contribution is in the range of a few hundred thousand dollars up to around $1 million+ per project. For example, a tall wood building might get $1 million to help pay for the specialized engineering and monitoring needed since it’s breaking new ground. A timber bridge demonstration might receive a few hundred thousand for design and material testing.
Types of Projects Funded: Since its inception in 2017, GCWood has funded:
Tall Wood Buildings: Pushing beyond current building heights for wood. Projects like 8-12 storey residential or commercial buildings using mass timber structural systems have been supported. (The famous 18-storey Brock Commons student residence in Vancouver, although slightly before GCWood, exemplified what is possible and GCWood continued such support for others.)
Low-rise but Innovative Buildings: e.g., a single-storey commercial building that uses an entirely new wood shear wall system or a long-span timber roof that hasn’t been done before, to demonstrate capability in arenas, warehouses, etc.
Timber Bridges: Demonstration of modern wood bridge designs for vehicle traffic, which could open up a market for timber in infrastructure. Short-span bridges using glulam or laminated veneer lumber (LVL) and even pedestrian bridges with unique wood designs have been funded.
Retrofits and Additions: Some projects involve adding wood elements to existing structures (like adding extra floors in wood on top of a concrete building – showing how hybrid solutions can work).
Many of these projects integrate new products – such as cross-laminated timber panels, nail-laminated timber, laminated strand lumber, and so on – giving manufacturers of those products real-world case studies to point to.
Why It Matters for B.C.: British Columbia is at the forefront of the mass timber revolution, with several manufacturers of CLT, glulam, and other engineered wood products. GCWood projects, wherever they are in Canada, help increase the demand and acceptance of these products. In fact, a number of GCWood-supported projects have been in B.C. or sourced products from B.C. mills:
A notable project is the 12-storey mass timber office building in downtown Vancouver (the “Terrace House” project), which received support to demonstrate novel aspects of mass timber engineering and prefabrication.
A highway rest stop in B.C. used an innovative wood truss system for an iconic look – supported as a demonstration of how even public infrastructure can embrace wood.
The program also funded technical work like fire testing, life-cycle analysis and design guides that directly benefit B.C. firms by easing regulatory hurdles for future wood buildings.
Complementary to Other Programs: GCWood often works hand-in-hand with provincial initiatives like B.C.’s Mass Timber Demonstration program and with industry groups (e.g., the Canada Wood Council’s Wood Works program). If you’re a wood product supplier, you might encourage your clients to seek GCWood funding for their ambitious wood building ideas – it can make their project more feasible, which in turn gets you a sale and a case study. Also, GCWood and IFIT have a bit of synergy: IFIT helps a factory produce a new product, and GCWood helps create a market by getting that product used in a building.
By catalyzing high-profile successes, GCWood has been changing mindsets in the construction industry, which is crucial for long-term market growth for forest products. Every time a new wood building goes up, it provides evidence to architects, engineers, and developers that “yes, we can build this with wood.” For the forest industry, this translates into an expanding market for sustainable wood products and an enhanced narrative of wood as a 21st-century innovation material, not just a traditional one.
Other Federal Initiatives and Climate Programs
There are a few additional federal initiatives that, while not exclusively forestry-focused, have significant implications for the forest sector’s sustainability and climate adaptation:
2 Billion Trees Program: The Government of Canada has a headline commitment to plant two billion trees over 10 years (starting around 2020). This program funds tree planting and reforestation projects across the country. In B.C., many projects have been funded through partnerships with provinces, First Nations, NGOs, and companies to plant trees on degraded or deforested lands. For example, federal funds have gone into replanting areas burned by the 2017/2018 wildfires in B.C.’s interior and restoring forest cover in mountain pine beetle affected areas. For forestry companies, this program can indirectly benefit future timber supply and forest health. Some companies or community forests might collaborate on proposals to plant additional trees (beyond legal reforestation requirements), especially if those plantings yield carbon sequestration credits or other benefits. It’s more of an environmental program than an industry grant, but it’s an important piece of the sustainability puzzle in B.C. forests and often involves local forestry contractors for planting work.
Wildfire Resilient Futures Initiative: As catastrophic wildfires become more frequent, Natural Resources Canada has been developing programs to invest in wildfire risk reduction and adaptation. This includes funding for research on fire-resistant building materials (where wood treated or engineered for fire performance could play a role) and community projects to reduce wildfire risk (somewhat overlapping with what FESBC and provincial FireSmart do). While details are evolving, the federal government’s increased focus on wildfire means more funds to manage forests in ways that reduce fuel build-up and use those materials productively.
Expanding Market Opportunities: The federal forest service also runs market development programs. For instance, the Expanding Market Opportunities Program provides funding to industry associations (like the Council of Forest Industries, Canada Wood, etc.) to promote Canadian wood products abroad and to develop offshore markets (e.g., in Asia). This helps B.C. companies indirectly by opening new export opportunities and reducing reliance on the U.S. market. It’s not a direct grant to a company, but it’s good to know these efforts are happening (trade missions, demonstration projects overseas, etc., often funded by government in partnership with industry).
R&D and Innovation Support: Federal bodies like FPInnovations (a large forestry research organization) receive government funding to carry out research and pilot projects that benefit industry. If you have a specific technical challenge or idea, partnering with FPInnovations (which has labs in B.C. and Quebec) can sometimes allow you to access their government-supported expertise or even use some of their project funding for trials. Also, programs like the National Research Council’s IRAP (Industrial Research Assistance Program) provide small-to-medium enterprises with advisory services and grants for R&D—so a forestry tech startup or a sawmill with an innovative process idea could potentially get an IRAP grant to develop a prototype or conduct a study.
Clean Growth Program (CGP) – Past Program: It’s worth mentioning the now-concluded Clean Growth Program (2017-2021), which provided funding for clean tech projects in natural resource sectors, including forestry. Several B.C. projects got support (e.g., bioenergy upgrades at mills, development of a portable biomass pyrolysis unit, etc.). While CGP is over, its role has been largely taken up by newer programs like SIF’s Net Zero Accelerator stream or the CleanBC fund and others. However, the legacy is that federal dollars continue to be available for clean technology in forestry, just through different channels.
Conclusion
British Columbia’s forestry sector stands at the intersection of tradition and transformation, and the range of funding programs available reflects this dynamic. On one hand, there’s a clear imperative to support communities and existing businesses through challenging times (mill closures, trade disputes, etc.), and on the other, a drive to innovate for a sustainable, high-value future. Provincial funds like the BC Manufacturing Jobs Fund and CleanBC Industry Fund are enabling companies to retool and adopt clean technologies, making mills more efficient and less polluting. The Forest Enhancement Society and related initiatives ensure that forest practices improve environmental outcomes – utilizing waste, reducing wildfire risks, and replanting for tomorrow’s forests.
At the same time, federal programs such as IFIT and SIF/SRF are infusing the sector with innovation capital – helping to create new bio-based industries and advanced wood products that didn’t exist a decade ago. Indigenous-focused programs are bringing more First Nations to the forefront of forestry, which not only is a matter of equity but also opens up new partnerships and business models grounded in local stewardship and knowledge. Successfully navigating these programs requires effort – applications, proposals, and sometimes coordination of multiple funding sources. However, the payoff can be substantial. These funds can cover significant portions of project costs, making projects financially viable where they otherwise might not be. They also often provide a stamp of approval that can attract private investors or lenders (for instance, receiving IFIT or SIF funding can signal that the project has been vetted and deemed valuable by government, encouraging others to invest).
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