VANCOUVER, BC, Aug. 4, 2026 /CNW/ -- Canada's forest sector is facing significant pressure: unjustified tariffs, supply chain constraints, shifting global markets and the impacts of climate change. These challenges are being felt in British Columbia, where the forest sector plays an important role in the province's economy and in the economic well-being of Indigenous communities.

Today, Wade Grant, Parliamentary Secretary to the Minister of Environment and Climate Change, announced over $1.2 million in funding to Iskum Investments LP for a project that will lay the groundwork for a potential new state-of-the-art wood processing facility in coastal British Columbia that would be majority Indigenous-owned and operated and could support over 700 jobs along British Columbia's coast.

The funding, provided by Natural Resources Canada's Indigenous Forestry Initiative, will support the completion of a detailed commercial, technical and financial analysis needed to reach a final investment decision.

Amidst a volatile global environment, the Government of Canada is focusing on what we can control by supporting the forest sector to adapt and thrive for generations to come. We are investing in innovation and fostering strong partnerships to create opportunities for Indigenous participation and leadership, strengthen local economies and support the prosperity of forest-reliant communities across British Columbia and beyond.

Quotes

"Canada's forests provide good jobs and sustainable economic growth from coast to coast to coast. Thanks to investments like these and leadership by Indigenous partners, our government is proud to help stabilize the industry today while building a stronger future for tomorrow."

The Honourable Tim Hodgson
 Minister of Energy and Natural Resources

"Indigenous Peoples are leading innovative and sustainable approaches to forest stewardship and economic development across British Columbia. Our investment in this project is just one way our government supporting Indigenous-led initiatives that will create long-term economic opportunities, strengthen community capacity and help ensure the forest sector remains a source of prosperity for generations to come."

Wade Grant
Parliamentary Secretary to the Minister of Environment and Climate Change

"We're working to restore confidence in the coastal forest sector. These communities have been the pillars of forestry — they've also felt the impacts of the immense challenges we're facing. This announcement brings hope to the region with the potential of hundreds of jobs, greater fibre flow and a stronger local forest economy. We will continue to work alongside the federal government to support B.C. forestry workers."

The Honourable Ravi Parmar
British Columbia's Minister of Forests

"Our Nations are investing our own capital because we believe the future of coastal forestry should include First Nations not only as tenure holders but as owners, manufacturers and partners in growing the economy. We are grateful to the Government of Canada for standing with us at this stage, and we recognize the Government of British Columbia for its early support in helping establish Iskum. Since then, our Nation-owned businesses have come together with an experienced board and management team to build the foundation for this work.

This study is an important first step, undertaken with care and diligence, toward building a stronger, more resilient coastal forest sector. It reflects what becomes possible when First Nations work together — not only to create more value from the resources in our territories but to create lasting prosperity for our Nations, workers and neighbouring communities and help build a stronger future for British Columbia and Canada."

Sayaač̓atḥ John Jack
Chief Councillor of Huu-ay-aht First Nations and founding partner of Iskum Investments LP

Quick Facts

• Canada's forest sector is a major economic driver, supporting nearly 200,000 workers, including over 11,000 Indigenous people, and contributing more than $20 billion to our GDP. 
• British Columbia's forest sector supports almost 50,000 jobs and provides nearly $5.54 billion to real GDP (1.8 percent of total GDP for the region).
• Since August 2025, the Government of Canada has introduced over $2.6 billion in measures designed to defend and transform Canada's forest sector, including the renewal of Natural Resources Canada's suite of forest sector transformation programs. As part of this, the Government of Canada is expanding and launching new supports through the Business Development Bank of Canada (BDC) and providing an additional $400 million to Canada's Regional Development Agencies.
• In June, the federal government released its draft Forest Sector Action Plan, informed by the recommendations of the Canadian Forest Sector Transformation Task Force. The draft action plan will support collaboration with provinces, territories, Indigenous Peoples and other key partners. This work will come together by the end of 2026 in a formal Forest Sector Strategy for Canada.
• The Indigenous Forestry Initiative aims to advance reconciliation by supporting Indigenous-identified priorities to accelerate First Nations, Inuit and Métis groups' awareness, influence, inclusion and leadership in the forest sector.

Related Products

• Canada launches Forest Sector Action Plan (June 4, 2026)
• Canada advances forest sector transformation to protect jobs and strengthen communities nationwide (June 3, 2026) 
• Government of Canada launches $500 million in support for retooling Canada's forest sector (February 25, 2026)
• Prime Minister Carney announces new measures to transform Canada's softwood lumber industry (August 5, 2025)

Associated Links

• Indigenous Forestry Initiative
• Draft Action Plan to Transform Canada's Forest Sector 
• Canadian Forest Sector Transformation Task Force
• Canada's softwood lumber industry
• Support for Canada's Forest Sector Employers and Workers
• Softwood Lumber Guarantee Program
• Iskum Investments (English only)

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SOURCE Natural Resources Canada