Location >> Date：2026-05-04
Abstract: In February 2026, the Canadian government opened applications for a total of CAD 500 million in federal funding, covering four forestry transition programs. Among them, a CAD 500,000 prefabricated housing project became one of the first initiatives to receive federal support. The project, named "2×3 B‑I‑B," is led by a team from the University of New Brunswick and will use small-dimension lumber to construct prefabricated structural components such as wall panels, floor slabs, roofs, beams, and columns, while concurrently conducting a cradle-to-grave life cycle analysis and cost assessment.
In February 2026, the Canadian government opened applications for CAD 500 million in federal funding, spanning four forestry transition programs. Among them, a CAD 500,000 prefabricated housing project became one of the first initiatives to receive federal support, marking a substantial step forward for Canada in promoting forestry transition and the large-scale application of wooden structure architecture.
This project, named "2×3 B‑I‑B" (an abbreviation for Building in a Building), is located in Fredericton and led by a team from the University of New Brunswick. The project will utilize cross-laminated timber (CLT), glued laminated timber (glulam), nail-laminated timber (NLT), and light-frame walls with wood fiber insulation to construct prefabricated wall panels, floor slabs, roofs, beams, columns, and other structural components from small-dimension 2×3 lumber. The research team is also simultaneously conducting a cradle-to-grave life cycle analysis and cost assessment.
The project is one of seven across New Brunswick and Nova Scotia, with a combined value of CAD 2.8 million. The other six projects cover areas such as biofuel production, hemlock woolly adelgid treatment, Indigenous forestry management, and export diversification. Tim Hodgson, Canada's Minister of Energy and Natural Resources, stated when announcing the project: "Canada's forests are more than just a resource; they are the foundation of good jobs, affordable housing, and sustainable economic growth."
The Canadian government had previously committed CAD 2 billion starting in August 2025 to secure the timber supply, and allocated CAD 1.2 billion in the 2025 budget to support the forestry sector and scale up engineered wood materials. This includes CAD 700 million in loan guarantees and CAD 500 million to renew Natural Resources Canada programs. The Canadian Forestry Transition Task Force was established subsequently.
These funding programs are part of the Canadian government's broader push to prioritize the use of Canadian timber through the "Buy Canadian" policy and the "Build Canada Housing" plan. Prime Minister Mark Carney stated at the launch of the "Build Canada Housing" plan: "Building Canada housing will place a high priority on using cost-effective and modern construction methods, such as factory-built, modular, and engineered wood materials."
Currently, Canadian timber producers face combined anti-dumping and countervailing duties from the United States totaling 35.16%. This CAD 500 million funding initiative aims to help Canadian forestry enterprises innovate and diversify production, expand the use of Canadian timber in the construction sector, support Indigenous participation, and open up new markets.
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