A Roadmap to Protecting Ontario’s Forest Sector

Ministers’ message

Forestry is a cornerstone industry that has built our province.

For generations, the forestry and forest products sector has provided good-paying jobs and economic prosperity for the people of Ontario, generating billions of dollars in revenue.

With a globally recognized reputation for sustainable forest management, Ontario-made forest products are trusted and in-demand both at home and around the world.

In 2020, the province launched Sustainable Growth: Ontario’s Forest Sector Strategy, a plan to build forest sector success in the years ahead.

The strategy arrived at a critical moment for Ontario — and for our forest sector.

As our province responded to the threat of COVID-19, the forest sector rose to the challenge, continuing to supply raw materials needed for critical goods, including hospital masks and gowns, as well as packaging for sterile medical equipment and food.

Our strategy for this essential industry has initiated decisive steps to cut red tape, spur job creation and unlock the untapped potential of Ontario’s forests: including milestone achievements such as the implementation of the Forest Biomass Program and the development of the Advanced Wood Construction Action Plan.

We have achieved over 70% of the goals we set for ourselves in 2020, but we cannot ignore the unprecedented economic headwinds that face us today.

Despite a long history as our closest trading partner, the United States government has targeted the forest sector with hostile tariffs and unjustified increased duties on softwood lumber.

This disruption to global trade threatens Ontario’s forest sector and the contributions it makes to our province’s economy and our communities.

Through ministry-led roundtables and 7 tours across the province, we heard about the challenges facing our forest sector — and the need for swift and strategic action.

The Forest Sector Strategy has laid a strong foundation for the future of forestry in Ontario. But the realities of today call for a new path forward.

That is why we are introducing A Roadmap to Protecting Ontario’s Forest Sector, our new plan that will guide us for the next 10 years.

We will defend Ontario’s forest sector.

Facing aggressive competition, we will stand shoulder-to-shoulder with partners across industry and all levels of government to confront unfair trade measures.

We will help our forest sector to adapt to meet evolving markets.

By reducing regulatory burden and red tape, we will build industry’s competitive advantage — and create new revenue streams by modernizing key facilities and unlocking new export markets.

We will grow the forest sector for generations to come.

Through policy changes and support to develop and commercialize groundbreaking products, we will build a future-ready sector, attract global investment and power continued domestic and international expansion.

To achieve these goals, we will leverage the strength of our partnerships and committed collaboration with industry, Indigenous communities and sectoral associations, backed by an all-of-government approach.

This roadmap charts a bold path forward to deliver a forest sector that is competitive, sustainable and ready for the challenges of tomorrow.

The decisions we make today — and the momentum we build in the critical months ahead — will position Ontario as a global leader in a time of profound change.

Our government will work with our forest sector to reach new potential and achieve new success.

Together, we will continue to build and protect Ontario.

Image

Image

Impact of Ontario’s forest sector

Ontario is the lowest-cost lumber producer in Canada and second only to the U.S. South in all of North America.

The province’s competitive regulatory environment and world‑class sustainable forest management enable businesses to maximize harvest potential and drive continued productivity and growth.

With access to international markets through more than 50 trade agreements, Ontario is positioned to attract global investment.

Ontario’s forests

• Forests cover 66% of Ontario, totalling 70.5. million hectares (ha)
• The managed forest zone covers 46.4 million ha, including 27.7 million ha of managed Crown forests
• Ontario’s 5-year harvest (2019–2023) averaged 120,484 ha annually

Introduction

The Roadmap to Protecting Ontario’s Forest Sector meets the threat of unprecedented U.S. trade measures with a focused plan to protect the workers, businesses and communities of Ontario’s forest sector.

This is the government’s renewed long-term forestry plan, which positions the province to succeed and lead in the new global forest economy. We will build on the successes to address the needs of the future, as we develop emerging opportunities to overcome the new challenges before us.

Setting the foundation: Ontario’s Forest Sector Strategy

Since 2020, Ontario’s actions to create jobs and build a stronger, more competitive and resilient forest sector have been guided by Sustainable Growth: Ontario’s Forest Sector Strategy. The province will continue to build on the strategy’s successes with the implementation of the Roadmap to Protecting Ontario’s Forest Sector.

Just over 5 years from launch, over 70% of the strategy’s goals are complete, calling for a future-ready plan to build on these successes, anticipate new challenges and support emerging opportunities. Ontario has provided annual updates highlighting actions to implement the Forest Sector Strategy, including the most recent Success at a Glance progress report, released in 2025.

Achievement: Promoting stewardship and sustainability while remaining competitive

Ontario has streamlined forestry’s legislative, regulatory and policy framework to enhance industry competitiveness. By developing a more efficient and effective planning system, Ontario has saved the forest sector close to $2.1 million each year, while upholding the sustainable forest management that safeguards our forests.

We have also begun consultation with the industry, stakeholders and Indigenous communities on the Natural Resources Regulatory and Permit Reform Initiative, with an emphasis on improving the permitting process to support economic growth.

Ontario will continue to reduce regulatory burden and increase efficiencies for the forest sector and will collaborate with the forest industry and Indigenous communities on policy updates.

Achievement: Strengthening partnerships with Indigenous peoples

Ontario has been working with Indigenous businesses, communities and people to build capacity and meaningful partnerships. Currently, 50% of managed forests include leadership from Indigenous community shareholders or board directors.

Ontario will continue working with Indigenous communities, organizations and businesses, along with forest industry and municipalities to expand economic participation in forestry by:

• building the capacity of Indigenous businesses and workers to participate in the forest sector by providing training opportunities and supporting Indigenous business development
• promoting increased involvement through collaborative business partnerships
• exploring options to expand resource revenue sharing with more Indigenous communities

Achievement: Driving industry growth by increasing the use of Ontario wood

Ontario has developed 3 action plans to grow the forest sector and build industry competitiveness and diversification. The Forest Biomass Action Plan, Wood Measurement Modernization Plan and Advanced Wood Construction Action Plan will continue to support initiatives that will see wood utilized and made available in a way that supports its increased use, attracting new business and new investment.

• The Forest Biomass Program will continue to invest $20 million each year to increase wood harvest, find new uses for wood and access new markets. This includes investments such as $4.6 million to equip Haliburton Forest Biochar with new technology to increase efficiency and output of biochar production, a substance used in power generation, soil amendment and water filtration. As of April 2026, over $50 million has been committed under this program, securing over $105 million in additional external investments.
• Launched in 2024, the Wood Measurement Modernization Plan will continue to enhance tracking of Crown forest resources, led by the Ministry of Natural Resources' Forest Industry Wood Measurement Modernization Committee, which continues to guide and plan consultation.
• The government continues to move forward with the Advanced Wood Construction Action Plan. Through the establishment of the Advanced Wood Committee and investments of nearly $80 million to advance modular and mass timber construction, Ontario continues to promote the use of wood manufacturing and building.

Maximizing the value of wood

Industry-led innovation is transforming underused wood and mill by-products, such as bark, shavings and sawdust, into value-added products that meet growing demand for renewable and sustainable alternatives.

Ontario will continue to advance this innovation and power the sector’s diversification into emerging markets, positioning the province as a leader in the green economy.

Chemicals

Materials

Energy

Achievement: Increasing innovation and competitiveness with targeted investments

Ontario’s investment in key forest sector programs has created new economic opportunity, accelerated innovation and created efficiencies that support jobs and growth.

As of April 2026, close to $98 million in funding has been approved under the Forest Sector Investment and Innovation Program, securing an added $540 million in external investments to reinforce forest sector productivity.

Among 27 key investments, the program provided $10 million to upgrade Daiken North America’s manufacturing facility in Huntsville, making Ontario the home of a first-in-kind wood panel that offers a higher-performance, lower-cost alternative to imported material, enhancing the province’s reputation as a manufacturer of innovative and sustainably-sourced wood products.

Under the Forest Access Roads Funding Program, Ontario has provided over $458 million since 2018 to develop and maintain rural road infrastructure in Crown forests used by the forest industry, mining companies, utilities, railways, hunters, campers, anglers, emergency responders and Indigenous communities.

Ontario launched the Sawmill Chip Support Program with a $10 million investment in 2024–25, helping 15 sawmills and other facilities access new wood chip markets as the forest sector adapts to changing pulp and paper markets. The program is providing an additional $10 million in 2025-26 to protect forest sector productivity.

Ontario will continue to invest in provincial programs, such as the Forest Sector Investment and Innovation Program, Forest Biomass Program and Forest Access Roads Funding Program, ensuring Ontario is open for business, able to deliver maximum value and ready to create broader opportunities for businesses and communities across the province.

Achievement: Developing talent for a stronger forest sector

Ontario is building the next generation of forest sector talent to drive the industry’s continued expansion into new markets. The Forestry Heavy Equipment Simulator Loan Initiative has helped thousands of young Ontarians explore industry careers by operating simulated forestry equipment.

The province has invested over $5 million in 2 SkillsAdvance Ontario training projects in forestry and wood manufacturing, and funded Bridging the Gap, a study of forestry workforce trends by Forests Ontario and the Ontario Forest Industries Association.

Ontario will continue to address prominent forestry labour challenges and support efforts to grow talent in the forest sector. We will continue to work with partners to support forestry and its downstream sectors (for example, bioeconomy, advanced wood construction) in recruiting, training, and retaining the workers needed for continued growth.

Challenges and opportunities

Since the introduction of the Forest Sector Strategy in 2020, new challenges have emerged that are intensifying other challenges for the sector. Ontario must chart the industry’s path forward, to new opportunities that will protect jobs, businesses and communities, and build forest sector success.

A Roadmap to Protecting Ontario’s Forest Sector

The Roadmap sets out the path to seize Ontario’s emerging opportunities and protect the workers, businesses, families and communities of the province’s forest sector.

Vision

Maintain Ontario’s status as leader of the G7 in making and selling forest products from renewable, sustainable and responsibly managed forests, with the competitive excellence and transformative technologies to unlock new global markets.

Strategic pillars

Image

Pillar 1: Defend

Support workers, communities and businesses during an unpredictable economic climate.

 

Objectives

1. Protect forestry businesses and workers from the impact of unjustified U.S. duties and tariffs.
2. Drive strong advocacy in partnership with the federal government for a solution to trade disputes.
3. Promote opportunities and potential in Ontario wood.

Image

Pillar 2: Adapt

Enhance competitiveness of the forest sector while safeguarding the long-term sustainability of Ontario’s forests.

Objectives

1. Reduce regulatory burden and enhance cost competitiveness to support the success of forest sector businesses.
2. Work with key anchor facilities to modernize, improve efficiencies, increase productivity and diversify products.
3. Increase global demand by developing and implementing a plan to increase exports overseas.

Image

Pillar 3: Grow

Increase long-term demand for Ontario’s forestry products.

 

Objectives

1. Increase domestic demand by encouraging the use of wood products and by building capacity of Indigenous businesses and workers to participate in the forest sector.
2. Attract global investment by marketing Ontario’s forest resources and innovative companies to global investors.
3. Empower the development of new forestry products through research and development and commercialization.

Pillar 1: Defend

Over 97% of Ontario’s forestry exports go to the United States. As of October 2025, the province’s forest industry faces a combined 45% in softwood lumber duties and tariffs on wood products that are shipped south of the border. Every dollar spent to pay these unjustified duties and tariffs is a dollar that could be reinvested in forestry jobs. Ontario must continue to defend our forestry sector against these unjust levies. The government will protect workers and businesses from the impact of this trade uncertainty while also working to advocate for a long-term solution.

Objective 1. Protect forestry businesses and workers from the impact of unjustified U.S. duties and tariffs

Steps we will take:

• keep critical mills operating by working with the federal government to get their support and through provincial funding programs to mitigate the impact of tariffs and duties in the sector
• leverage existing programs designed to support tariff-impacted workers, including workers in the forestry sector, and implement targeted federal tariff-related funding through Skills Advance Ontario to upskill and reskill softwood lumber workers to help maintain sector competitiveness and workforce stability

What we will achieve

Objective 2. Drive strong advocacy in partnership with the federal government for a solution to trade disputes

Steps we will take:

• work with the federal government, industry, provinces and territories, and industry partners to launch coordinated advocacy efforts to improve trade conditions
• remain an active party with other provinces and the Canadian government by defending Ontario’s forest industry throughout litigation challenges
• continued implementation of Ontario’s U.S. Engagement Strategy to strengthen Ontario-U.S. relations with influential U.S. partners to advocate for the elimination of current and future duties and tariffs to restore a stable, predictable trade environment to support long-term business confidence

What we will achieve

Objective 3. Promote opportunities and potential in Ontario wood

Steps we will take:

• support key forest sector partners in advancing education and career promotion efforts to highlight the diversity of meaningful careers in forestry and its downstream sectors
• promote and raise awareness through the Ontario Wood brand
• mobilize partners across Canada to address market challenges and actively promote Ontario’s proven leadership in sustainable forest management to international customers

What we will achieve

Pillar 2: Adapt

Ontario will adapt the forest sector by enhancing the competitiveness of forestry businesses, particularly key anchor facilities, and reducing regulatory burden and costs through streamlining and other initiatives, while safeguarding the long-term sustainability of Ontario’s forests.

Objective 1. Reduce regulatory burden and enhance cost competitiveness to support the success of forest sector businesses

Steps we will take:

• the Natural Resources Regulatory and Permit Reform Initiative is identifying and implementing changes to forest-related rules and permitting processes to make them more efficient, reduce unnecessary steps and support economic growth, while continuing to manage Ontario’s forests responsibly and sustainably
• explore further changes to Ontario's forest policy framework, such as enabling one forest management plan to be prepared for multiple management units and enabling continuous forest management plans
• reduce red tape and regulatory burden by identifying and implementing additional cost reduction measures, particularly in energy, environment and transportation, to enable the success of forest sector businesses, for example:
  • facilitate broader adoption of alternate trailer configurations already used in western Canada, along with other technologies that improve the movement of forest products and determine how to implement them in Ontario
  • streamline targeted Environmental Compliance Approvals processes to speed up approvals and reduce administrative delays
• enhance Private Land Harvesting by considering various tools to responsibly encourage greater timber production on private lands
• work with the federal government to identify pathways to restructure, retool and transform Canada’s forest sector by streamlining and reducing duplicative red tape and burdens constraining the success of our forest sector
• modernize Ontario’s forest resources inventory: modernizing the IT systems behind the inventory will improve data quality, accessibility and reliability, ensuring that decision‑makers across multiple sectors have timely, accurate information

What we will achieve

Objective 2. Work with key anchor facilities to modernize, improve efficiencies, increase productivity and diversify products

Steps we will take:

• work to modernize anchor facilities and associated workforce to create hubs of innovation and a diverse production of value-added products by:
  • working with those facilities interested in improving energy efficiency and reducing reliance on natural gas, for example, by adopting internal heat production and, where cost effective, increasing electricity cogeneration from biomass
  • facilitating the manufacturing of novel energy products (for example, biochar, biofuels) and producing new products like mass timber components
  • encouraging greater use of automation to enhance efficiencies, retain employees and support higher-value work
  • training workers with the skills needed to maximize capital investments and drive new product development
• incentivize industry to invest and leverage those investments through cooperation with the federal government and existing provincial funding programs (for example, Forest Biomass Program, Forest Sector Investment and Innovation Program) to enable modernization

What we will achieve

Objective 3. Increase global demand by developing and implementing a plan to increase exports overseas

Steps we will take:

• develop and implement an export diversification plan for the forest sector to find alternate international markets for our forest products
• work with the federal government to leverage Canada’s existing trade agreements, as well as trade agreements currently under negotiation or planned for negotiation in 2026, to expand export markets for Ontario forest products
• work with the federal government to leverage Canada’s international development projects to include Ontario’s forest products

What we will achieve

Pillar 3: Grow

Ontario will grow the forest sector by increasing long-term demand for new and existing wood products in domestic and international markets through strategic investments and changes to government programs and policies.

Objective 1. Increase domestic demand by encouraging the use of wood products and by building capacity of Indigenous businesses and workers to participate in the forest sector

Steps we will take:

• advance the use of Ontario wood through the existing Buy Ontario procurement policy, which encourages the use of domestic materials (including wood products) in provincial infrastructure projects
• drive greater use of wood in construction, especially in modular designs and buildings, through the ongoing work the province and its partners are doing to support modular homebuilding in Ontario
• expand standards for, and attract investment in and manufacturing of advanced wood construction and mass timber components, materials and systems and enhance training and skills competencies
• engage the federal government to support the use of mass timber and other advanced wood construction projects on a national scale
• explore opportunities to strategically expand forest bioenergy (electricity) to support local demand, balancing the benefits to the forestry sector and regional economies with value for electricity ratepayers and taxpayers
• create policies to promote the use of forest biomass residuals as a feedstock for bioproducts
• align biomass codes and standards with European and other global jurisdictions to facilitate more export opportunities and attract investment
• identify additional policy and program supports for local wood-based biofuels under Ontario's Cleaner Transportation Fuels regulation, which requires blending of renewable fuels in the gasoline and diesel pools
• build the capacity of Indigenous businesses and workers to participate in the forest sector by facilitating training opportunities and supporting Indigenous business development

What we will achieve

Objective 2. Attract global investment by marketing Ontario’s forest resources and innovative companies to global investors

Steps we will take:

• develop and implement an investment attraction plan that promotes Ontario’s forest resources and innovative companies to global investors across multiple sectors
• work with Invest Ontario to secure investments that help to diversify the range of products produced from Ontario’s forest resources and secure additional good-paying jobs for the sector

What we will achieve

Objective 3. Empower the development of new forestry products through research and development and commercialization

Steps we will take:

• bring more products to a commercial-ready state by working with partners to invest in collaborative research that leads to new products and refines emerging applications, in areas such as:
  • advanced wood construction products to support the expansion of the use of wood in the built environment
  • modular housing production to support provincial and federal housing targets
  • bioproduct manufacturing and development (for example, biochar and lignin-based materials, sustainable aviation fuel, wood fibre insulation, etc.) to support lower emissions applications
• conduct early-stage research with industry and academic institutions to identify priority areas for translating research into intellectual property and market-ready products

What we will achieve

Monitoring performance

The Ministry of Natural Resources will lead implementation of the Roadmap to Protecting Ontario’s Forest Sector, collaborating on specific actions with other ministries, industry stakeholders, Indigenous communities and external partners, including the Forest Sector Strategy Committee and Advanced Wood Committee.

Drawing on this collaboration, the ministry will develop key performance indicators for the Roadmap in 2026 and report annually on implementation progress. This ongoing monitoring will ensure timely adjustments and informed decision-making that will strengthen the forest sector’s resilience, adaptability and growth.

Conclusion

This roadmap reflects the bold, decisive actions we are taking to protect Ontario’s forestry and forest products industries and ensuring they remain resilient, competitive and sustainable.

Guided by 3 strategic pillars — Defend, Adapt and Grow — the roadmap provides a clear framework for action: 

• defend against trade uncertainty and economic shocks
• adapt operations and policies to strengthen competitiveness and sustainability
• drive increased wood utilization through innovation, diversification and investment attraction

By leveraging Ontario’s open-for-business climate, strong resource base and leadership in sustainable forest management, we will secure the future of this vital sector. This roadmap positions Ontario to protect thousands of jobs, foster prosperity in Indigenous, northern, and rural communities, and maintain our global reputation as a leader in renewable, responsibly managed forests.

Together, these actions will ensure Ontario’s forest sector thrives — delivering economic opportunity, environmental stewardship and long-term growth for generations to come.

References

Centre for Research and Innovation in the Bio-economy. 2024. Ontario’s Opportunities in Forest Bio-Refining: Road to 2030 (PDF). 29 pp.

Desjardins, S.M., M.T. Ter-Mikaelian and J. Chen. 2025. Carbon Footprint of Biochar from Forest Harvest Residues as a Substitute for Coal During Steel Production. ACS Sustainable Resour. Manage. 2, 2, 243–255

Related links

• Forest Sector Roadmap
• Forest Biomass Program
• Advanced Wood Construction Action Plan
• Ontario forestry
• Forest management policies