Amount: maximum 50% of total project cost up to $10M per project.

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.

Eligibility Criteria

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 qualify for funding, projects must demonstrate innovative advancement, operate at an appropriate scale, and be integrated within the forest sector, as outlined below:

Innovation advancement. Projects must introduce a technological or process innovation that strengthens the competitiveness of Canada’s forest sector. This may include a first-of-its-kind solution or early adoption of a technology that still requires de-risking before broader industry deployment.

Operational scale. Projects must operate at one of the following levels:

  • Demonstration scale: Technology used to produce limited product volumes for technical and market analysis, supporting future full-scale development.

  • Commercial scale: A full-scale facility intended to produce products for profit.

Forest sector integration. Projects must demonstrate a direct connection to the forest sector by either using wood fibre–based feedstock or integrating into an existing forest sector industrial facility.

Amount

Maximum 50% of total project cost up to $10M per project.

Deadline

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