Canada’s New Law to Fast-Track Projects and Boost Economy

Photo: AP

Prime Minister Mark Carney and the Liberal government introduced a new law on Friday to help Canada’s economy grow faster and protect it from challenges, especially from the U.S. This law will let the government speed up big development projects and make it easier to move goods and workers across the country. Carney wants this law passed quickly, even if Parliament has to stay open longer than planned.

Carney said, “We are in an economic crisis. We face unfair tariffs from our biggest trading partner, so we must focus on building strength at home.”

The new law, called the “One Canadian Economy” law, will allow the government to pick important projects and approve them faster. Instead of deciding whether these projects should happen, the government will decide how to build them quickly. The law does not explain exactly how projects will be chosen but says the government will think about things like Canada’s climate goals and the rights of Indigenous Peoples. The government will have wide powers to decide which projects move forward fast.

The law also lets the federal cabinet decide which federal laws apply to these projects and can even change or ignore some laws during this fast-track process. This power will last for five years.

Government officials say the process will still respect Indigenous rights and environmental rules. They want projects to be approved within two years, although this is not written into the law.

However, some Indigenous leaders worry the government is not consulting enough. Environmental groups are also concerned that important protections for nature and climate could be weakened.

Stewart Elgie, a law professor, said this kind of power usually happens only in emergencies. He warned that the law gives the government a lot of power to ignore environmental laws, which can be dangerous if not used carefully.

The West Coast Environmental Law group called the bill “anti-democratic” and worried that the public might not get a chance to share their opinions on these fast-tracked projects.

Opposition leader Pierre Poilievre said the law is only a “small step” and not strong enough to fix trade and development problems. He also criticized Carney for saying projects would need approval from provinces and Indigenous groups, saying more action is needed.

The law is part of Carney’s promise during the April 28 election to make Canada’s economy the strongest in the G7 and to become a leader in clean energy and fossil fuels. He said Canada must finish the long-awaited goal of free trade within the country and remove delays caused by reviews and consultations. His campaign slogan was “Build, baby, build.”

This law will help Canada sell more resources like oil, gas, and minerals to the world. It will also make Canada’s economy stronger and less dependent on the U.S.

Different provinces have shared their priorities. Ontario wants to speed up nuclear energy projects, develop minerals in the “Ring of Fire” area, and build a deep-sea port on James Bay. Alberta’s Premier, Danielle Smith, supports a deal with the federal government, and Carney supports new fossil fuel pipelines that have local and Indigenous support and carry “decarbonized” oil.

Groups like the Canadian Association of Petroleum Producers and the Canadian Chamber of Commerce support the new law. Ontario Premier Doug Ford also said Carney is moving in the right direction.

The law says the government will choose projects that help Canada’s security, bring economic or other benefits, have a good chance of success, support Indigenous Peoples, and help with clean growth and climate goals.

Before picking a project, the minister in charge—Dominic LeBlanc—must talk with provinces and Indigenous Peoples who might be affected.

Once chosen, projects get conditional approval under federal rules and go through a new “Major Projects Office.” They must follow laws like the Fisheries Act and the Species at Risk Act. The government will add rules to reduce the project’s impact before final approval.

But the law also allows ministers to skip or change any federal laws for these projects.

The government says provincial reviews are not affected, but they want to make agreements so these reviews are not repeated.

The law also tries to reduce trade barriers inside Canada. Carney promised “free trade by Canada Day.” While this law does not fully deliver that, it makes it easier to remove federal rules where provinces already have similar rules. It also makes it easier for workers to work in other provinces by simplifying licensing.

Outside the law, the government is working on removing 17 exceptions in a 2017 free trade agreement that still limit trade. These exceptions relate to national security and shared authority areas. The government wants to remove as many as possible by July 1.