The Media Room
2009/22 (a)
BACKGROUNDER
New Investments in Market Diversification and Forest Innovation
Canada’s forest sector is undergoing an important restructuring due to a number of competitive challenges. These include declining demand in the United States’ residential construction market, increased competition from companies in emerging countries and a global recession.
Despite this transition period, new technologies and new markets offer a promising future for Canada’s forest sector.
The Government of Canada is committed to helping Canada’s forest sector take advantage of these new opportunities by helping the industry develop innovative products that meet the needs of the marketplace. We believe that the key to a strong future for the forest sector is to promote innovation and entrepreneurial activity within a competitive business environment.
As outlined in Canada’s Economic Action Plan, the Government is providing $170 million, over two years, to improve the forest sector’s long-term competitiveness through renewed investments in market diversification and forest innovation. This investment includes $50 million to expand market opportunities for Canadian forest products and $120 million to help promote forest innovation and investment.
These new investments address the priorities of Canada’s forest sector as outlined during the 2009 pre-budget consultations.
Expanding Market Opportunities
Under this initiative, $40 million will be provided, over two years, to the Canada Wood, Value to Wood, and North America Wood First programs, which help forestry companies market innovative products internationally.
In addition, $10 million will be provided to support large-scale demonstrations of the use of Canadian wood in construction.
Promoting Forest Innovation and Investment
Under this initiative, $80 million will be provided, over two years, to support the Transformative Technologies program. This program is administered by FPInnovations, a not-for-profit forest research institute that focuses on the development of emerging and breakthrough technologies such as biomass and nanotechnology.
In addition, $40 million will be provided to develop pilot-scale demonstration projects of new products for use in commercial applications.
For additional details on the Government of Canada’s Economic Action Plan, visit www.budget.gc.ca/2009/home-accueil-eng.asp.
Media may contact:
Jasmine MacDonnell
Director of Communications
Office of the Minister
Natural Resources Canada
Ottawa
613-996-2007
Media Relations
Natural Resources Canada
Ottawa
613-992-4447
NRCan's news releases and backgrounders are available at www.nrcan.gc.ca/media/index-eng.php.