The introduction of Investment Tax Credits (ITCs) for biomass projects is being seen as a key step to support Canada’s forest sector, offering a long-awaited boost to investor confidence after years of uncertainty, Canadian Forest Industries reported.
Biomass projects use forest waste such as bark, sawdust and wood chips to produce heat and electricity. Industry leaders say these projects can help modernise mills, create jobs and support communities, especially in rural and northern regions.
The forestry sector directly employs nearly 200,000 people in Canada and supports another 200,000 jobs in related industries such as transport, maintenance and manufacturing. Many smaller communities depend heavily on the sector for employment.
Derek Nighbor, President and CEO of the Forest Products Association of Canada, said biomass energy can provide a steady and sustainable source of heat and power while creating jobs across both rural and urban areas. He added that the approval of biomass ITCs is an important step for economic growth, energy security and reducing emissions.
Industry estimates suggest the tax credits could help unlock about $6 billion in biomass investments over time, create thousands of well-paying jobs, and support Canada’s clean energy targets. The move is also expected to drive modernisation across forest-based industries.
Experts say taking advantage of this opportunity will be important to strengthen supply chains and maintain Canada’s position in the global renewable energy market.
