Canada to invest up to C$50 million in digital forestry centre
The Government of Canada plans to invest up to C$50 million in the proposed New Brunswick Strategic Innovation Centre in Digital Forestry. Led by the Northern Hardwoods Research Institute in collaboration with ResearchNB, the approximately C$86 million project is intended to improve fibre supply visibility and modernise forest operations.
The federal contribution remains conditional on project approval and completion of final due diligence.
Digital infrastructure for fibre supply
The centre would pilot the digitalisation of the forest sector, enabling businesses and other stakeholders to identify, track and use fibre resources more effectively throughout the supply chain.
Reliable wood supply is essential for lumber, paper, packaging and other forest products. Wildfires, pests and other pressures have made that supply less predictable, creating risks for mills, employment and competitiveness.
By improving certainty and matching available fibre with individual facilities’ manufacturing needs, the initiative aims to reduce costs, improve operational efficiency and attract investment. New Brunswick would provide a model that could be applied in other regions.
Energy and Natural Resources Minister Tim Hodgson linked the investment to the forthcoming national forest sector strategy, which is intended to support competitiveness, modernisation and long-term resilience. Budget 2026 is expected to provide further details of that strategy.
New Brunswick Natural Resources Minister John Herron highlighted the sector’s role in the provincial economy and the collaboration involving the institute, ResearchNB, the Canadian Forest Service and industry. He said the investment would accelerate the use of digital technologies in forestry.
Provincial Minister of Post-Secondary Education, Training and Labour Jean-Claude D’Amours emphasised the role of the two research organisations in helping the industry address challenges and modernise.
Gaetan Pelletier, Executive Director of the Northern Hardwoods Research Institute, said a major independent analysis by AFRY in 2024 had identified a sector-wide digitalisation strategy as central to transformation and resilience. He described the government investment as a catalyst for that change.
ResearchNB Chief Executive Officer Candice Pollack pointed to the province’s research capabilities, industrial expertise and public infrastructure as foundations for the project.
Wider forest sector transformation
Canada’s forest sector supports nearly 200,000 jobs and around 300 rural, remote and Indigenous communities. It contributed C$23.5 billion to national GDP in 2024, while facing pressures including US tariffs, climate change and changing demand.
Since August 2025, the federal government has introduced more than C$2.6 billion in measures to defend and transform the sector, including renewal of Natural Resources Canada’s forest sector transformation programmes.
The forthcoming strategy will build on the Canadian Forest Sector Transformation Task Force’s June 2026 report and consultations with provinces, territories, Indigenous partners and other stakeholders on the draft action plan.
