Quebec's Bill 97: A contentious overhaul of forestry and its deep implications for the wood industry

Quebec's Bill 97, tabled in the spring of 2025, represents the most significant and polarizing reform of the province's forestry management in decades. Presented as a necessary modernization to enhance the economic competitiveness and predictability of the wood industry, the bill has ignited a fierce debate, pitting the government and industry against a formidable coalition of First Nations, environmental groups, and unions. At its core, the legislation seeks to fundamentally change who has priority in the forest, with profound and complex implications for the wood industry in Quebec and across Canada.

The heart of the matter: a three-zoned forest

The central pillar of Bill 97 is the introduction of a new forest management model that divides Quebec's vast public forests into three distinct zones. This 'triad approach' is a radical departure from previous, more integrated management philosophies.

  1. Priority forest development zones: This is the most crucial and controversial aspect for the industry. The government's goal is to designate at least 30% of each region's public forests for the primary purpose of timber harvesting. Within these zones, other activities that could hinder or restrict logging operations would be prohibited, effectively giving forestry companies an exclusive right-of-way.
  2. Multi-use zones: These areas are intended to balance timber production with other values and activities, such as wildlife conservation, recreational tourism (like hunting and fishing outfitters), and the pursuit of traditional activities by Indigenous communities.
  3. Conservation zones: This designation would apply to existing and future protected areas, such as parks and ecological reserves, where industrial activities like logging are forbidden.

This segregation of land use is the primary driver of both the industry's support and the widespread opposition to the bill.

The intended impact: a boon for the wood industry?

From the perspective of Quebec's powerful wood products industry, particularly large logging companies and mills, Bill 97 is seen as a long-overdue and necessary lifeline. The anticipated impacts are centered on stability and growth.

Unprecedented predictability and security of lumber supply

The creation of 'Priority Forest Development Zones' is the bill's main selling point for industry. The Conseil de l’industrie forestière du Québec (CIFQ), the main industry lobby group, has championed this as a way to provide the long-term predictability needed to justify major investments in sawmills, processing plants, and technology. By creating zones where timber harvesting is the undisputed priority, the government aims to de-risk operations from land-use conflicts and legal challenges from other groups, ensuring a steady, reliable flow of wood fibre.

Enhanced investment climate for lumber production

The bill proposes replacing the current system of supply guarantees with new Sustainable Forest Development Licenses that have a longer duration of ten years, up from five. This extended timeframe is designed to give companies the confidence to make significant capital expenditures, secure in their access to resources. This, combined with the priority zoning, is meant to signal to international investors that Quebec is a stable and welcoming jurisdiction for forestry capital.

Decentralized and efficient forestry management

The legislation also aims to decentralize forest management by transferring more authority to regional managers. The industry sees this as a positive move away from what it often views as a cumbersome, one-size-fits-all approach from Quebec City. The hope is that local managers, being closer to the ground, can make faster and more efficient decisions that are better tailored to the specific conditions and needs of their region's forestry operations.

Quebec law 97 is causing controversy because of many reasons involving indigenous rights and old growth forests
Quebec law 97 is causing controversy because of many reasons involving indigenous rights and old growth forests as well as the potential impact on the Canadian wood industry. For scale - the tiny red dot near the centre is a person in this arial image of recent clearcutting of forests

The unintended consequences: a landscape of risk and conflict

While the bill is designed to create a more stable environment for logging, the intense and organized opposition it has generated may ironically lead to a new and more volatile form of risk for the industry.

The erosion of social license and Indigenous rights in Quebec's Forests

The most significant threat to the bill's success is the uniform and powerful opposition from First Nations. The Assembly of First Nations Quebec-Labrador (AFNQL) has unequivocally rejected the bill, stating that it was drafted without proper consultation and represents a "major step backward" for reconciliation. Indigenous leaders argue that dedicating a third of their ancestral territories to priority logging infringes on their treaty rights and their ability to practice their culture.

Impact on the wood industry: This creates a critical risk to the industry's social license to operate. Companies operating in these new priority zones will likely face sustained legal challenges, on-the-ground protests, and potential blockades. This could lead to significant operational delays, increased security and legal costs, and a level of uncertainty that directly contradicts the bill's stated goals.

Market access and reputational damage for the forestry industry

Environmental organizations and unions have echoed concerns that Bill 97 promotes an outdated model of resource extraction that prioritizes short-term profit over long-term forest health, biodiversity, and climate resilience. The segregation of conservation into specific zones is seen as ignoring the ecological reality that forests are interconnected systems.

Impact on the wood industry: This backlash poses a direct threat to market access. Increasingly, major buyers of wood products in Europe and parts of the U.S. demand rigorous proof of sustainable and ethical sourcing, often verified by third-party certifications like the Forest Stewardship Council (FSC). If Quebec's forestry regime is perceived as regressive and socially contentious, it could lead to:

  • Loss of certification: Companies may find it difficult to maintain or acquire stringent eco-certifications for wood harvested under the new regime.
  • Boycotts and 'tainted' Quebec brands: Quebec wood products could be targeted by international environmental campaigns, damaging the brand and closing off access to lucrative, high-value markets.

Questioning the long-term economic model for the lumber industry

Critics argue that the bill props up a volume-based commodity industry at the expense of a more diversified and resilient forest economy. By potentially limiting activities in vast zones, the bill could harm other sectors like tourism, recreation, and emerging opportunities in carbon credits and bioproducts.

There is concern that the bill encourages a race to harvest timber as quickly as possible, which could compromise the future stability of the very forestry jobs it purports to protect.

Implications for the Canadian wood industry

Though a piece of provincial legislation, Bill 97 will undoubtedly have national repercussions across the Canadian Forestry industry and so the wood industry.

  • A diverging path: The bill's approach to forest management and Indigenous consultation may put Quebec out of step with evolving federal policies and international commitments like the UN Declaration on the Rights of Indigenous Peoples (UNDRIP). This could create regulatory and reputational headaches for national and international companies that operate across Canada.
  • National brand reputation: The Canadian wood industry as a whole benefits from a global reputation for sustainable management, although the sustainability of the Canadian wood industry does have some sustainability question marks. A high-profile, protracted conflict over forestry practices in Quebec could tarnish this national brand, potentially affecting market perceptions for products from other provinces and encouraging the world to look closer at the convenient environmental claims of the Canadian forestry and wood industries.
  • A precedent for conflict: If Bill 97 proceeds despite the opposition, it could embolden other provinces to adopt similar legislation, potentially sparking similar conflicts over resource management across the country.

Our conclusions on Quebec's Bill 97

This proposed legislation governing the lumber industry in Quebec is a watershed moment. For the wood industry it presents a clear, government-backed path toward securing a high volume of timber for the construction industry. However, that path is fraught with peril. The promise of operational predictability is severely threatened by the guarantee of social and legal conflict.

The likely impact will therefore not be a simple increase in logging, but rather a new, more complex business environment where a company's success will depend as much on its ability to navigate intense social opposition and market scrutiny as its ability to harvest wood.

Deepen your understanding of modern forestry in Canada

Understanding the details of Quebec's Bill 97 is one step. Applying that knowledge to the broader context of sustainable forestry, Indigenous rights, and the future of Canada's wood industry is another. Explore these essential sustainable construction guides to learn more about the critical issues at play:

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