What is the federal impact assessment process? Why was it created?

Canadians expect development activities to do be done with consideration for sustainability. The federal impact assessment process studies the potential impacts that major projects like hydroelectric dams, ports and nuclear power plants may have in areas for which the federal government is responsible. This process ensures we understand the potential impacts and helps reduce negative impacts before projects get built.

Federal impact assessments are a planning and decision-making tool that look at:

• the impacts that proposed projects could have to areas of federal responsibility
• the impacts on Indigenous Peoples and their rights

The impact assessment system for major projects was created to:

• foster sustainability
• advance reconciliation and partnership with Indigenous Peoples
• establish a fair, predictable, and efficient process that contributes to a positive investment climate in Canada
• prevent or mitigate adverse effects while integrating innovative approaches and technologies
• ensure early, inclusive, and meaningful public engagement
• support coordinated actions among jurisdictions and advance our nation-to-nation, Inuit-Crown, and government-to-government partnerships
• ensure evidence-based decisions relying on western science and Indigenous Knowledge
• assess cumulative effects associated with major projects

Why do we need assessments?

In Canada, we’re aware of the pressing need to protect our environment for present and future generations.

We recognize the relationship between resource development and important environmental, health, social, economic matters, as well as the need to protect Indigenous Rights and culture. This is why we look carefully at the impacts of proposed major projects – in particular, those that have the greatest potential for adverse effects in federal jurisdiction (for example, effects to fish and fish habitat or to migratory birds).

Federal assessments help us create a more complete picture of major projects, supporting improvements to projects design and making better decisions about them.

Equally important, impact assessments uphold the Government of Canada’s duty to respect Indigenous rights throughout the impact assessment process. They provide opportunities for meaningful engagement and participation of Indigenous Peoples, with the aim of securing their free, prior, and informed consent.

Today, we’re also committed to completing impact assessments more efficiently. The Government of Canada has set a target of five years or less to complete federal impact assessments and related permitting processes for federally designated projects and a three-year target for nuclear project reviews.

This commitment helps Canada remain competitive and innovative for investors and industry while contributing to our shared prosperity and sustainability.

It means good projects get across the finish line sooner.

In other words, impact assessments that are timely, efficient, and focused on what matters.

How does it work?

Federal impact assessments have five phases. Learn more about your role in each phase.

1. Planning Phase
2. Impact Statement Phase
3. Impact Assessment Phase
4. Decision-Making Phase
5. Post-Decision Phase

What about after an assessment?

There are many opportunities for consultation and engagement when assessments are ongoing.

But the ability to engage on a project does not end with an impact assessment decision.

When the Minister of Environment and Climate Change determines that there are adverse effects for a proposed project and that those effects are justified, the Decision Statement includes conditions the proponent must follow throughout the life of the project.

The compliance and enforcement of those conditions take place over the life of a project. During the post-decision phase, Indigenous groups can participate in some follow-up and monitoring activities.

For more information, visit the project pages on the Canadian Impact Assessment Registry for the latest updates or contact the Compliance and Enforcement team at the Impact Assessment Agency of Canada.