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Quebec invests $252M to support the forestry sector

In the fall 2024 Update on Québec’s Economic and Financial Situation, the provincial government announced an additional $252 million investment over five years to support the forestry sector, which has faced challenges including the 2023 forest fires and U.S. duties on Canadian lumber. The total investment will enable initiatives worth $540 million over seven years, focusing on wood processing and reforestation.

A key component of the investment includes $100 million in financial assistance to businesses struggling with liquidity issues, particularly those impacted by the softwood lumber dispute. The funds will be provided in the form of loans.

The Quebec and Canadian governments also agreed to invest $440 million in reforestation efforts. This includes the planting of over 100 million trees by 2030-2031, with the Canadian government contributing $220 million under the 2 Billion Trees program. The goal is to enhance reforestation in unproductive areas and sites affected by natural disturbances, as well as to ensure proper maintenance of the new plantings.

“The forestry sector plays a key role in Québec’s economy and the development of its regions. The initiatives we are announcing today bring to more than $1 billion the sums invested by our government since the fall of 2023 to help this sector,” said Eric Girard, Quebec Minister of Finance.

Maïté Blanchette Vézina, Quebec Minister of Natural Resources and Forests, added, “We are fully aware of the difficulties that the forestry sector has been facing in recent years. The government has chosen to support this vital sector for our regions. By combining the modernization of the forest regime with the new investments we are announcing today, we are giving the sector the means to meet these challenges. In the long term, we will offer greater flexibility, but most importantly predictability, to businesses in the forestry sector and to other forest users.”