Purpose and benefits of impact assessments

Disclaimer: This page provides a plain language overview of the impact assessment process. It does not replace or alter common or civil law or legal requirements under the Impact Assessment Act or regulations enacted under it. In the event of any inconsistency between this content and the Impact Assessment Act or regulations enacted under it, the latter prevails.

What is the purpose of a federal impact assessment?

Attracting investment in major projects—that support energy security and access to export markets and create jobs—is more important than ever to Canada’s national interest. Impact Assessments are one part of this, enabling investment and responsible development through an open and efficient process.

The federal impact assessment process applies only to major projects. Impact assessments are conducted to examine the positive and negative effects (impacts) that a proposed major project (for example, a dam, port, or nuclear facility) could have. This requires gathering information and evidence from multiple sources. These sources include the project proponent, scientific experts, Indigenous Peoples, the public, communities, and others. This information is used to identify potential significant harm and ways to mitigate that harm before projects are built. It is also used to enhance a project’s positive impacts.

An impact assessment is a planning tool aimed at:

increasing the positive effects of a project
reducing the impact of adverse federal effects of a project

Actions designed to reduce or prevent adverse effects are called mitigation measures. These can take the form of legally binding and enforceable conditions on proponents.

Jurisdictional considerations

Federal impact assessments apply only to major projects that are the most likely to have significant adverse effects in areas of federal jurisdiction (i.e. fish and fish habitat, aquatic species, cross boundary marine pollution, impacts on federal lands and impacts on Indigenous Peoples). These projects are listed in the Physical Activities Regulation.

IAAC collaborates closely with provinces who have a shared responsibility to protect the environment and Indigenous rights. When a province conducts an assessment on the same major project, IAAC works to align with its process to meet the requirements of the Impact Assessment Act as much as possible. If a provincial assessment does not cover all federal requirements, IAAC works with the province to include those federal requirements in their process, aiming for a single assessment.

Projects may also require federal authorizations or approvals under the Fisheries Act, the Species at Risk Act, or the Canadian Navigable Waters Act. Such approvals can be issued only after the impact assessment process is complete. However, IAAC works to integrate those requirements into the assessment process to reduce duplication and to coordinate post-assessment permitting. IAAC does this, in part, by developing detailed permitting plans with clear requirements and timelines. IAAC also publishes a public dashboard on the Canadian Impact Assessment Registry to provide transparency and accountability against those timelines.

The importance of sustainability

Impact Assessment Agency of Canada works to promote sustainability. This includes:

protecting the environment
contributing to the social and economic well-being of the people of Canada
preserving the health of the people of Canada

Benefits of federal impact assessments

Federal assessments help ensure projects are planned responsibly, addressing any significant adverse impacts that fall under federal jurisdiction in advance. This supports sustainable development and helps protect the environment and Indigenous rights.

The assessment process is designed to:

promote early dialogue with Indigenous Peoples, provinces and territories, stakeholders, and the public to identify potential issues from the outset
engage the public in a meaningful way
enable cooperation with other jurisdictions to achieve the goal of “one project, one review”
provide a predictable, transparent, and timely method for clarifying expectations, timelines, and decision-making
ensure Indigenous Knowledge is considered alongside western science and other sources of evidence
engage and support the participation of Indigenous Peoples and advance reconciliation through cooperation and partnership
support permitting process and requirements

Who conducts impact assessments?

Assessments can be conducted by:

IAAC staff
an independent review panel
another jurisdiction such as a province or an Indigenous governing body that has its own process
a combination of the above

In all cases, the federal government is committed to collaborating with other jurisdictions.

Respecting Indigenous Knowledge, rights, and culture

The rights and culture of Indigenous Peoples are respected at all phases of the assessment process.

We work to advance the Government of Canada’s commitment to the United Nations Declaration on the Rights of Indigenous Peoples. Working together with Indigenous Peoples is the core of the assessment process. This includes:

meaningful consultation and consideration of Indigenous Knowledge
maximizing Indigenous participation and partnership in conducting impact assessments
providing funding to support Indigenous participation and capacity in impact assessments

Types of projects that require an impact assessment

The project types that may require a federal impact assessment are referred to as ‘designated projects’, set out in the Physical Activities Regulations (also known as the Project List). These types of projects are considered to have the greatest potential for significant adverse federal effects. Examples include certain power-generation facilities, marine terminals, major mines, inter-provincial bridges, and large dams.

Steps

The impact assessment process is organized into five phases:

Planning
Impact Statement
Impact Assessment
Decision
Post Decision (follow-up activities)

Timing

The Government of Canada’s target is to complete the federal approvals process, including the impact assessment process, in a timely fashion. These targets rely on the proponent to:

engage meaningfully with Indigenous Peoples
provide federal authorities with quality information and data in a timely matter
identify and resolve issues as early as possible

In addition, IAAC often conducts initial outreach and relationship-building with potentially impacted Indigenous and non-Indigenous communities before the formal assessment process begins.

Transcript: Guiding Canada’s Sustainable Future

If a major project was proposed near where you live...

...what potential impacts would matter most to you?

The Impact Assessment Agency of Canada evaluates impacts of proposed major projects.

Throughout the impact assessment process, we seek comments from various people, including: different levels of government, non-governmental organizations, Indigenous groups, and the public.

During the first phase, we ask people to identify key issues. We also determine what needs to be assessed, and how people want to participate. We look at positive and negative impacts and determine if the project needs an assessment.

In the second phase, the project developer follows established guidelines. It conducts studies, and consults with various people to prepare an impact statement. This sets out the potential impacts of the project and how some can be reduced.

In the next phase, we use the Impact Statement to prepare a report that draws on: science, Indigenous knowledge; and public and Indigenous community input.

In the fourth phase, the Minister or Governor in Council uses the impact assessment report to determine if the project is in the public interest. If yes, the Minister establishes conditions to reduce negative impacts that the developer must legally meet.

In the last phase, we verify and enforce compliance of the conditions.

As you’ve seen, a range of views and information is key for a thorough impact assessment.

Learn more about how you can have your say.

Have your say: canada.ca/iaac

Resources

Training opportunities — IAAC offers webinars and free training.
The Impact Assessment Act and its regulations — This page provides an overview of the Impact Assessment Act and the 2024 amendments as well as links to other resources.
Practitioner’s Guide to Federal Impact Assessments — This document offers detailed guidance for proponents and others involved in the process.

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Date modified:: 2025-06-05

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