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Ottawa Puts $12.4 Million Into 14 B.C. Forestry Projects Focused on Diversification

The move signals Ottawa’s push to shift B.C. forestry toward value-added, low-carbon production under pressure from U.S. lumber tariffs.

Stacks of lumber sit in the storage and sorting yard at the WFP Duke Point Sawmill in Nanaimo, British Columbia, Canada, on Friday, October 17, 2025. Photographer: James MacDonald
Softwood lumber is pictured at Tolko Industries in Heffley Creek, B.C., Sunday, April, 1, 2018.
Wood manufacturing plant owner John Brink speaks to a CBC News reporter in March 2205.

Overview

  • The federal government, which announced the funding Thursday, said it will back 14 projects in British Columbia with $12.4 million as a targeted tranche within its sector support plan.
  • The money is part of a broader $2.35 billion strategy that includes $1.2 billion in loan guarantees and $500 million for programs that help companies modernize and diversify.
  • Officials said the projects will develop low-carbon wood technologies, expand mass timber construction, support Indigenous groups, and grow value-added manufacturing for new markets.
  • Spearhead Timberworks in Nelson will receive $7.5 million, the largest single share, to expand production of engineered wood components.
  • The U.S. Commerce Department has signaled lower duty rates for most Canadian softwood by early autumn 2026, though current combined tariffs remain steep and final rates are still pending.