A thousand cuts: Why B.C.’s lumber crisis is also a climate challenge

By Yadullah Hussain
RBC Thoughts Leadership
February 26, 2026
Category: Carbon, Climate & Bioenergy
Region: Canada, Canada West

Canada’s stumbling forestry sector could hurt the country’s ability to develop homegrown sustainable solutions for packaging, building and retail sectors. …Ottawa and the BC governments have both acknowledged the depth of the province’s forestry crisis through targeted budget measures, but there may be room for more: new investment tax credits to encourage biomass use, improved procurement guidelines to support greater uptake of Canadian wood in government projects, and for the newly launched Build Canada Homes agency to prioritize Canadian lumber in federal construction products. It could prove to be a significant climate move as buildings currently make up 18% of Canada’s greenhouse gas emissions. These approaches will support an industry in crisis today but its future will hinge on three key factors: market recovery, positioning sustainable wood products as a strategic asset in the transition to a low-carbon economy, and how effectively it can adapt to climate-driven wildfire risk.

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