Canada Aims to Approve Projects in a Year After Criticism It’s Too Slow

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(Bloomberg) — Prime Minister Mark Carney’s government is pushing to speed up the timeline for federal reviews of major projects to one year, after facing repeated criticism that Canada’s regulatory processes are too slow.

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Intergovernmental Affairs Minister Dominic LeBlanc and Transport Minister Steven MacKinnon announced on Friday that the government will launch a 30-day consultation period on a series of proposals to accelerate project reviews. 

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Specifically, the government is proposing to limit federal decision-making timelines to no more than a year once proponents have submitted all the project information.

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The government is also pitching regulatory changes to ensure only a single federal decision is needed for many major project approvals — rather than multiple departments needing to render judgments. 

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The proposed changes would apply to all large projects reviewed by the federal government, and represent another move by Carney to respond to pressure to improve the rules for investment. Last year, the prime minister instituted a new policy of rendering a decision within two years on proposals referred to the Major Projects Office. 

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Carney has vowed to make it easier to build major projects by cutting red tape that businesses have long complained block investment and hold back the resources sector. However, his agenda has faced pushback from some Indigenous and climate groups, who argue he’s prioritizing economic gains over potential harm to communities and the environment.

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Earlier this week, the executive director of the International Energy Agency urged Canada to move more quickly to develop and export its energy resources. Fatih Birol warned Canada doesn’t have the luxury to be slow” as it faces a “golden opportunity” to move projects ahead faster.

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Birol’s remarks follow recent comments by Cenovus Energy Inc. Chief Executive Officer Jon McKenzie that higher costs of new oil sands projects mean they will only work economically if environmental rules are loosened.

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As part of the streamlined approach the government is looking to take, a new consultation hub would work with government departments and agencies to ensure that Indigenous groups affected by a major project go through one coordinated consultation process.

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The government is also seeking to provide ministers with more power to move projects ahead, including authorizing LeBlanc to adjust environmental conditions for projects of national interest, when needed. 

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“The proposed regulatory and legislative reforms are part of our ambitious plan to build a stronger Canada — helping companies across the country build their projects faster, attracting investment, boosting our competitiveness, and growing Canada’s economy,” LeBlanc said in a statement. 

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The government is also launching consultations on proposals to diversify Canadian trade.