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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. By bridging the gap between development and commercialization, the program accelerates the adoption of transformative technologies and products. IFIT’s mission is to build a more competitive, sustainable and low-carbon forest sector while helping companies establish new and diversified revenue streams.
Objectives
IFIT funds projects that support several key objectives, including:
- promoting the adoption and scale-up of transformative technologies and processes in the forest sector
- enhanced production of advanced wood-based materials to enhance housing construction capacity in support of the federal housing agenda
- ensuring the long-term economic sustainability of Canada’s forest sector
- developing new products and processes to support market growth and diversification
- increasing national supply and demand of forest products
- supporting advanced wood-based materials to enhance housing construction capacity in support of the federal housing agenda
Applicants are encouraged to consult the applicant guidebook for complete information on project eligibility, application requirements, and more.
Eligibility
Eligible recipients
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.
Targeted innovation categories
The IFIT program requires that projects fall within one of the targeted innovation categories designed to align with current priorities.
- Advanced wood-based building solutions: The development of innovative structural and architectural solutions designed to displace carbon-intensive materials like concrete, steel and fossil-based insulation.
- Biomaterials and biochemicals: The conversion of wood fibre into high-performance, sustainable alternatives to petroleum-based products.
- Pulp and paper modernization: Projects aimed at transforming the pulp and paper industry through high-value diversification and environmental stewardship.
- Next-generation biofuels: The conversion of forest residues, low-grade fibre, harvest by-products and mill residuals into fuels via thermochemical or biochemical pathways.
- Advanced decarbonization: This category is reserved for transformative, emerging technologies that achieve deep emission reductions in forest sector operations.
Eligible projects
To qualify for funding support under the program, projects must represent an innovative advancement, be at operational scale, and be integrated within the forest sector, as per the following criteria:
Advancement of innovation: Projects must represent an innovative advancement in technology or process that strengthens the competitiveness of Canada’s forest sector. It must demonstrate a "first-in-kind" innovation or the early adoption of a technology that requires further de-risking before it can be implemented industry-wide.
Operational scale: Projects must be at either:
- demonstration scale: Technology employed to produce a small quantity of a product for technical and market analysis (i.e., will produce small volumes in support of future full-scale development).
- commercial scale: Full scale facility that intends to produce products for profit.
Integration within the forest sector: Projects must demonstrate a direct connection to the forest sector by either using feedstock derived from wood fibre or demonstrating integration into a forest sector industrial facility.
For more information on targeted innovation categories, eligible projects and expenditures, please see the applicant guidebook.
Funding
Amount payable
- Up to 50% of the total eligible project cost
- The maximum IFIT contribution to a project is $10 million
Stacking provisions
Total government assistance (federal, provincial/territorial and municipal) will not exceed 100% of the total eligible project cost.
How to apply and key dates
Project proponents must apply through the Natural Resources Canada (NRCan) Funding Portal.
Application processes
- Review the application form and applicant guidebook: These materials are available through NRCan’s Funding Portal. Applicants are asked to review these documents before beginning their applications.
- Complete and submit the application form: The full project proposal along with supporting documentation must be completed and then submitted via NRCan’s Funding Portal. Please see the applicant guidebook for the list of supporting documentation.
- Evaluation: Applications will be screened against mandatory criteria and those that meet the baseline requirements will be assessed against the specified rated criteria found in the applicant guidebook.
- Project selection: The evaluation will establish a short list of highly ranked projects. Short-listed applicants will advance to the due diligence phase.
- Contribution agreement: Projects that successfully complete the due diligence process will move on to negotiating a funding agreement.
Current Call for Proposals: Apply by April 27, 2026, 3:00 p.m. EST
Information sessions
The program will host public online information sessions for the current Call for Proposals for capital investment projects, in both English and French. To register for one or more of these sessions, contact the IFIT team.
English session: Thursday, March 12 , 2026, at 1 p.m. EST
Register for the English session
French session: Tuesday, March 10, 2026, at 1 p.m. EST
Register for the French Session
If you are unable to attend, the webinar slides and script will be posted on the Investments in Forest Industry Transformation (IFIT) web page after the sessions.
Service standard
A service standard is a public commitment to measure the level of performance that clients can expect under normal circumstances. NRCan is committed to adhering to the following three service standards to increase transparency, to clarify expectations and to focus on service:
- Acknowledge receipt of the application and/or proposal
NRCan will acknowledge receipt of an application and/or a proposal within five business days of receiving it. NRCan aims to meet this standard 95% of the time.
- Provide a funding decision
NRCan will issue an official written notification of the funding decision within 100 business days of the closing date of the call for proposals, or within 100 business days of receiving a proposal for which there is a continuous intake process. NRCan aims to meet this standard 90% of the time.
- Issue payment
NRCan will issue payments within 30 calendar days of receiving invoices if all the conditions in the contribution agreement are met. NRCan aims to meet this standard 90% of the time.
Note: Achieving these service standards is a shared responsibility and depends on the documentation being complete and submitted in a timely manner. It is important that recipients provide timely responses to questions.
NRCan’s Service Standards for Transfer Payment Programs
Contact us
For more information or to join our mailing list to receive program updates, webinar dates and registration details, email ifit-itif@nrcan-rncan.gc.ca.
For more information on other measures available to support the forestry sector and its workers or for guidance in navigating the multiple funding opportunities, please visit Support for forest sector employers and workers.