Amount: up to 50% of the total eligible project costs up to $10 million.

The Investments in Forest Industry Transformation (IFIT) Capital Investment Project Stream provides non‑repayable contributions to de-risk innovative, first-in-kind technologies in Canada’s forest sector. IFIT’s mission is to build a more competitive, sustainable and low-carbon forest sector while helping companies establish new and diversified revenue streams.

Eligible requirements

To qualify for IFIT funding, applicants must be for-profit companies located in Canada that fall into one of the following two categories:

  • existing producers: Organizations currently manufacturing forest products (such as pulp, paper, solid wood, or engineered wood) at an existing facility
  • new entrants: Organizations entering the forest sector specifically to execute the proposed project

Clusters, joint ventures and consortiums are eligible, provided a for-profit company is designated as the lead applicant.

Eligible Projects

To be considered for funding under this program, projects must demonstrate innovation, operate at an appropriate scale, and show clear integration within the forest sector, according to the criteria below:

Innovation Advancement
Projects must introduce a meaningful technological or process innovation that enhances the competitiveness of Canada’s forest sector. This includes either a first-of-its-kind solution or the early adoption of emerging technology that still requires de-risking before broad industry implementation.

Operational Scale
Projects must operate at one of the following levels:

  • Demonstration scale: Use of technology to produce limited product volumes for technical validation and market assessment, supporting future full-scale commercialization.

  • Commercial scale: A full-scale facility designed to manufacture products for commercial sale and profit.

Forest Sector Integration
Projects must demonstrate a direct link to the forest sector by either:

  • Using wood fibre-based feedstock, or

  • Being integrated into an existing forest sector industrial operation.

Applicants submitting projects related to softwood lumber are encouraged to contact the program team before submitting a full proposal.

Amount

Applicants can get up to 50% of the total eligible project cost. The maximum IFIT contribution to a project is $10 million.

Total government assistance (federal, provincial/territorial and municipal) will not exceed 100% of the total eligible project cost.

Timeline

The current intake opened on February 25, 2026. The application deadline is April 27, 2027.