Canada's forests cover approximately 362 million hectares, of which 230 million are classified as "managed forests" under federal reporting. For decades, these forests were understood as a net carbon sink — absorbing more carbon dioxide through photosynthesis and biomass growth than they released through decomposition and disturbance. That assumption has been fundamentally challenged. According to Natural Resources Canada's State of Canada's Forests: Annual Report 2025, the total net greenhouse gas flux from Canada's managed forests and forest products reached approximately 1,138 million tonnes of CO₂ equivalent (Mt CO₂e) in 2023 — making the country's forests a massive net carbon source for the first time in modern record-keeping. This article examines the net carbon effect of Canadian forest ecosystems using only institutional and peer-reviewed sources, with particular attention to regional variations and the unprecedented 2023 wildfire season.