New Federal Legislation Aims to Accelerate Major Project Approvals in Canada

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Business groups have welcomed new federal legislation aimed at expediting major project approvals, potentially boosting Canada's competitive edge.

OTTAWA — Business organizations are expressing their support for a new federal initiative designed to expedite major infrastructure projects, indicating that it encompasses measures they have long advocated for to enhance Canada's competitive positioning. Bill C-39, introduced in the House of Commons on Monday, seeks to streamline project review processes, establish zones of "national interest," and mitigate the chances of disruptive work stoppages through amendments to the Canada Labour Code.
Goldy Hyder, president and chief executive of the Business Council of Canada, remarked, "This bill helps address the structural weaknesses that have held back Canadian competitiveness for years." If the bill is enacted, it would impose a one-year federal review timeline, a significant reduction from the previous review durations that could extend beyond five years. Bryan Dethchou, senior director of natural resources, environment, and sustainability for the Canadian Chamber of Commerce, referred to this legislative move as "breaking critical legislative ground."
Last year, the government, under Prime Minister Mark Carney, established a Calgary-based major projects office aimed at accelerating the review of projects deemed essential to national interests. To date, 27 projects have been referred to this office for expedited evaluation. Dethchou expressed enthusiasm for this development but voiced concerns regarding a plethora of other projects mired in a fragmented assessment system. He noted, "A door is now opening to all of these important projects, by providing industry with a clear, measurable timeline that will guide the assessment, review, and approval process going forward."
This clarity, he asserted, would instill confidence in an industry eager for momentum, suggesting that the current environment is ripe for investment and job creation, ultimately bolstering Canada’s economic sovereignty. A coalition representing business interests from British Columbia, Alberta, Saskatchewan, and Manitoba has also shown support for the proposed legislation, alongside other recent initiatives, such as an expanded tax deduction for business investments.
Adam Legge, president of the Business Council of Alberta, commended the government's progress and urged Parliament to act swiftly, emphasizing that businesses need certainty to invest, build, and expand in Canada, particularly during challenging times marked by strained trade relations and geopolitical instability. Laura Jones, president and CEO of the Business Council of British Columbia, highlighted the significant role Western Canada could play in transforming this ambition into reality, aiming to position Canada as a global leader in energy and natural resources.
Jordan Eizenga, a partner in Deloitte Canada’s infrastructure team, described the legislation as "massive" and "ambitious," reflecting widespread concerns voiced by clients eager to invest in Canada. He noted, "They’ve clearly heard a lot from industry that these are big impediments," emphasizing the urgent need to leverage every available option to stimulate economic growth.
The proposed legislation includes provisions for creating "regions of national interest," where specific projects might receive pre-approval, contingent upon certain conditions and mitigation measures. Eizenga characterized this as a pragmatic approach, especially when multiple projects are slated for the same geographic area, arguing that it eliminates unnecessary bureaucratic hurdles.
Nicole Wang, infrastructure advisory leader at EY Canada, remarked that the bill conveys a robust message indicating that Canada is open for business, yet she cautioned that the success of the initiative hinges on effective implementation. "It’s important that we can show progress so that this isn’t just another announcement," she stated. Wang acknowledged lingering concerns among investors about the potential for expedited processes to backfire, highlighting the necessity for Ottawa to ensure that decisions are resilient enough to withstand legal scrutiny and political changes.
"Investing is something that is going to serve many decades, many generations," she added, noting that this long-term perspective is critical for investors evaluating Canada’s investment climate.

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