Major Projects In Canada: Proposed Changes To Federal Project Reviews

On June 4, 2026, the federal government extended the consultation period on two discussion papers proposing a broad redesign of how major projects are reviewed and approved in Canada, with the government now intending to introduce legislation in the fall. The discussion papers, released on May 8, 2026, would represent a significant change to the federal review regime. The pause does not signal a change in direction, but provides stakeholders, such as project proponents, investors and lenders, First Nations, and participants in the energy, mining, nuclear, transportation and port sectors, a longer window to assess the proposals and participate in shaping the new regime.

Consultation extended and legislation deferred

The discussion papers, Getting Major Projects Built in Canada and Strengthening One Canadian Economy through Trade and Transportation, were released jointly by the Privy Council Office and Transport Canada.¹ They are intended to deliver on the government’s commitment to render federal decisions on major projects within two years. The government initially launched a 30-day consultation period and indicated it would move quickly to introduce legislation once it closed.

That timetable has shifted. Following a high volume of submissions from industry, provinces, First Nations and environmental organizations, including requests for additional opportunities to provide input, the government has extended the consultation deadline to July 22, 2026.²

The existing federal review framework

Under the Impact Assessment Act (IAA), designated projects listed in the Physical Activities Regulations or designated by the Minister enter a planning phase of up to 180 days, at the end of which the Impact Assessment Agency of Canada (IAAC) determines whether an impact assessment is required by issuing a notice of commencement.³ An assessment is required only when the project may cause non-negligible adverse effects within federal jurisdiction.⁴ When required, the assessment is conducted by the IAAC within 300 days or by a review panel within 600 days.⁵ The Minister or the Governor in Council (GIC) then determines whether any significant adverse effects within federal jurisdiction are justified in the public interest, and a decision statement is issued.⁶ Permits are generally sought afterwards, making the process sequential. In the past, some projects have waited more than five years to obtain the federal decisions needed to begin construction.⁷

Key proposed changes

The discussion papers aim to shorten the path from project proposal to construction by consolidating overlapping federal and provincial requirements, improving how departments work together, and giving proponents clearer expectations about timing and process. Getting Major Projects Built in Canada proposes changes across six areas:

1. Federal review and decision-making in no more than one year: Federal impact assessments and permit reviews would run concurrently rather than sequentially, starting at the notice of commencement where an impact assessment is required. Proponents would have one year to submit their finalized studies and information, and the federal review and decision would be completed within one year, with a Federal Review Coordinator at IAAC responsible for keeping assessments and permits on track.
2. One Crown consultation process: A Crown Consultation Hub within IAAC would ensure that each Indigenous group affected by a major project goes through one clear and coordinated consultation process per project, replacing multiple overlapping processes across departments.
3. One project decision: For certain designated projects under the Physical Activities Regulations of the IAA, all federal decisions would be consolidated into a single decision document issued by the Minister of Environment, Climate Change and Nature. This document would include all federal decisions required for a project to move forward. Where significant adverse federal effects are identified, the decision would be made jointly with the responsible minister or referred to the GIC.
4. Single project authority: The Canada Energy Regulator (CER) would review international and interprovincial pipelines, transmission lines and offshore renewable energy projects, which would no longer require a separate impact assessment under the IAA. For pipelines with lengthy routes, the GIC would make the public interest decision at the beginning of the process, before the CER completes its review of conditions and routing. The Canadian Nuclear Safety Commission (CNSC) would conduct impact assessments for nuclear and uranium projects.
5. Federal Economic Zones: New legislation would allow the GIC to pre-approve defined categories of development within designated zones, such as transportation corridors, telecommunication networks, energy production and transmission areas and industrial regions, removing the need for separate project reviews within those zones. Coordination with provinces will be essential to allow projects to be fast-tracked under both federal and provincial regimes.
6. Streamlined regulatory environment: Proposed measures include narrowing the activities that require navigation permits, making permits more flexible for offsetting under the Fisheries Act, transferring certain decisions from the GIC to the relevant minister, allowing some early construction activities before an impact decision where the necessary permits are approved, ministerial authority to adjust impact assessment conditions in exceptional circumstances, and a limited GIC power, with a high threshold, to exempt specific projects from the jeopardy test for species at risk where it is in the public interest and the proponent has made all reasonable efforts to avoid or reduce impacts.

The second discussion paper, Strengthening One Canadian Economy through Trade and Transportation, proposes amendments to the Canada Transportation Act and the Canada Marine Act, including the designation of National Trade Corridors, modernized governance and greater financial flexibility for Canada Port Authorities, and a simplified reporting system for businesses.

These proposals differ from the Building Canada Act, adopted in 2025, which allows the GIC to fast-track a limited list of projects designated as being in the national interest and contains a five-year sunset clause.⁸ The reforms now under consultation would be permanent and would apply more broadly to major projects.

What to watch

Fall legislation: The government intends to introduce legislation in the fall.⁹ The decision to extend the consultation period suggests the bill may nonetheless be refined, particularly on Indigenous consultation and the species at risk exemption, which attracted significant attention during the initial consultation period.

Design of Federal Economic Zones: The discussion papers offer few details on how the zones would be delineated, how the categories of pre-approved developments and their conditions would be set, and how the zones would interact with provincial regimes. Proponents with projects in prospective corridors or industrial areas should monitor how the legislation answers these questions.

Transition for projects in the system: The discussion papers contemplate transition rules for nuclear projects depending on their stage of assessment, including the ability for proponents to continue under the existing process. Proponents with projects currently before IAAC, the CER or the CNSC will want to understand which regime applies to them and whether opting into the new process is available or advantageous.

Legal durability: Compressed timelines and consolidated consultation will be measured against the Crown's duty to consult under section 35 of the Constitution Act, 1982 and Canada's commitments under the United Nations Declaration on the Rights of Indigenous Peoples Act. A faster process that does not withstand judicial review may deliver less certainty for proponents.

Conclusion

The federal government has paused, but not abandoned, a reform that would consolidate federal decisions, compress review timelines and reassign review responsibilities for some of the largest projects in Canada. The range of stakeholders with a direct interest is broad: project proponents, investors and lenders, First Nations, and participants in the energy, mining, nuclear, transportation and port sectors. The consultation period now closes on July 22, 2026, with legislation expected in the fall. For all stakeholders, engaging with the proposals now and understanding their legal and commercial implications will be essential as the process unfolds.

Footnotes

1. Government of Canada, Getting Major Projects Built in Canada: Discussion Paper on Proposed Legislative, Regulatory, and Policy Reforms (12 May 2026); Government of Canada, Discussion Paper: Strengthening One Canadian Economy through Trade and Transportation (8 May 2026).↩

2. Government of Canada, Engagement: Supporting Timely Decision-Making for Major Projects; Transport Canada, Strengthening One Canadian Economy through Trade and Transportation.↩

3. Impact Assessment Act, SC 2019, c 28, s 1, s 18.↩

. Ibid, s 16(2.1).↩

5. Ibid, ss 27(2), 37(2).↩

6. Ibid, s 65.↩

7. Government of Canada, Getting Major Projects Built in Canada, supra note 1.↩

8. Building Canada Act, SC 2025, c 2, s 4.↩

9. Government of Canada, Engagement period extended on proposed reforms to strengthen one Canadian economy (4 June 2026).↩