Canada’s Project Approval Overhaul: Will Speed Trump Scrutiny?
Canada’s notoriously slow project approval process is costing the country billions and hindering its ability to compete in a rapidly changing global landscape. Now, a series of draft agreements between the federal government and provinces like Ontario and Manitoba – building on existing arrangements in British Columbia, Prince Edward Island, and New Brunswick – aims to dramatically accelerate the path from proposal to construction. But this push for speed isn’t without its critics, raising questions about whether environmental safeguards and Indigenous consultation will be compromised in the pursuit of economic development.
The “One Project, One Review” Shift: A Devolution of Power
At the heart of this shift is the principle of “one project, one review,” designed to eliminate the duplication and overlap that have long plagued Canada’s impact assessment system. Traditionally, major projects – think pipelines, mines, and large-scale energy facilities – have been subject to both provincial and federal environmental assessments, often leading to years of delays. The new agreements delegate the lead role in these assessments to the provinces, with Ottawa playing a supporting role. This represents a significant devolution of authority, a move welcomed by premiers who have long argued for greater provincial control.
This isn’t a completely new concept. British Columbia has had a similar agreement in place since 2019, and the Cedar LNG facility near Kitimat stands as a success story, achieving approval in just 3.5 years – a relative blink of an eye in Canadian project development timelines. However, the expansion of this model across more provinces signals a fundamental change in approach. The federal Major Projects Office (MPO) remains a key component, focusing on “nation-building” projects fast-tracked through Bill C-5, but the provincial agreements could ultimately have a broader impact by streamlining the process for a wider range of developments.
Responding to U.S. Protectionism and a Changing Economic Landscape
The timing of these agreements is no coincidence. With the rise of protectionist policies in the United States, Canada is seeking to diversify its economic partnerships and strengthen its internal market. As Prime Minister Mark Carney has emphasized, accelerating infrastructure and resource development is crucial to improving Canada’s competitiveness and attracting investment. This includes building transportation networks to facilitate interprovincial trade and enhancing the country’s ability to export goods to overseas markets. The focus on critical minerals is particularly noteworthy, as Canada aims to become a key supplier to the global clean energy transition.
The Indigenous Consultation Imperative
A critical aspect of these agreements is the emphasis on Indigenous consultation. The draft agreements explicitly state that both Ottawa and the provinces must respect Indigenous rights throughout the assessment process. Ontario Regional Chief Abram Benedict has expressed cautious optimism, viewing the agreements as a potential roadmap for collaborative development that benefits First Nations communities. However, the success of this approach hinges on meaningful engagement and a genuine commitment to addressing Indigenous concerns. As Benedict stated, First Nations are “willing partners” but development “must be done the right way.”
Navigating the Legal and Environmental Concerns
The move to streamline approvals hasn’t been without controversy. Environmental groups, like Environmental Defence, have voiced concerns that giving more latitude to provinces like Ontario – which has recently rolled back climate change targets – could weaken environmental protections. Furthermore, the Supreme Court’s 2023 decision finding that Ottawa had overstepped its constitutional authority in certain impact assessments has forced the federal government to amend the Impact Assessment Act, adding another layer of complexity.
Jay Khosla, former assistant deputy minister with Natural Resources Canada, highlights the key legal test: “Can you go to court and demonstrate that you’ve met your obligations?” Effective collaboration between Ottawa and the provinces, coupled with robust assessment processes, will be essential to withstand potential legal challenges from environmental or Indigenous groups. The agreements themselves don’t lower environmental standards, but the question remains whether provinces will consistently enforce them with the same rigor as the federal government.
Looking Ahead: A New Era for Canadian Project Development?
The shift towards provincial leadership in project assessments represents a significant gamble for Canada. If successful, it could unlock billions of dollars in investment, create jobs, and strengthen the country’s economic resilience. However, the potential for environmental damage and inadequate Indigenous consultation looms large. The true measure of success won’t be the speed of approvals, but whether those approvals lead to sustainable, responsible development that benefits all Canadians. The coming months, as the agreements undergo consultation and are implemented, will be crucial in determining whether Canada can strike the right balance between economic growth and environmental stewardship.
What are your predictions for the future of major project approvals in Canada? Share your thoughts in the comments below!
