Purpose of the Building Canada Act

The Building Canada Act was introduced as part of Bill C-5, the One Canadian Economy Act, and received Royal Assent on June 26.

Canada needs to use all the tools at its disposal to get major projects built; projects that will help Canada become the strongest economy in the G7, deepen our trade relationships with reliable partners, and create good Canadian jobs.

The purpose of the Building Canada Act is to enhance Canada’s prosperity, national security, economic security, national defence and national autonomy, by ensuring that projects of national interest get built faster. A clearer, more efficient and predictable process will help enhance regulatory certainty and investor confidence, support economic growth, and strengthen Canada’s competitiveness.

The Building Canada Act enables the government to streamline federal approval processes for projects determined to be in the national interest, to help them move forward efficiently while protecting Canada’s environment and upholding the rights of Indigenous Peoples.

Benefits for proponents, investors, and Indigenous communities:

• A consistent, centralized process that supports Indigenous engagement, consultation and partnership.
• Predictable regulatory pathways and greater timeline certainty that reduce project risk.
• Clearer, coordinated federal regulatory reviews.
• Stronger trade and supply chains that improve national competitiveness.
• A more stable project and regulatory environment that attracts long-term capital.

Projects of national interest

The types of projects that are being considered for listing under the Building Canada Act are projects that can better connect our economy, diversify our industries, access new markets, and create high-paying careers, while protecting Canada’s environment and upholding the rights of Indigenous Peoples.

In deciding whether to list a project as one in Canada’s national interest under the Building Canada Act, the Government can consider a range of factors, including the extent to which the project:

1. Strengthens Canada’s autonomy, resilience, and security;
2. Provides economic or other benefits to Canada;
3. Has a high likelihood of successful execution;
4. Advances the interests of Indigenous Peoples; and
5. Contributes to clean growth and to meeting Canada’s climate change objectives.

How it works

Major projects are normally subject to approvals, permits and authorizations under various federal laws – such as the Impact Assessment Act, Fisheries Act, and Species at Risk Act. The projects are required to be assessed under each legislation individually, which can sometimes lead to consecutive or lengthy processes.  

For projects deemed of national interest and listed under the Building Canada Act, all federal approvals are automatically granted at once, subject to initial approval by treaty-based processes where applicable, changing the federal approval process from a consecutive assessment to a consolidated, streamlined assessment. Approval is subject to a federal regulatory review and a conditions document to be issued by the Minister of One Canadian Economy.

The Building Canada Act listing shifts the review from ‘whether’ the project should proceed, to ‘how’ the project should proceed. It also allows the project to proceed with financing, consultations, and business planning while projects undertake the regulatory review process.

For projects listed under Schedule 1 of the Building Canada Act that are captured by modern treaty-based project reviews, the federal conditions document cannot be issued until the applicable review board has completed its assessment, and a decision has been made.

The Building Canada Act is intended to accelerate projects of national interest by:

• Bringing the project under a unique legislative framework that recognizes its national importance.
• Providing upfront federal approval through a national interest decision, while ensuring  the duty to consult is discharged and the environment is protected.
• Consolidating key subsequent regulatory permits and authorizations under a single Minister.

Referral of a project

A project is referred to the Major Projects Office (MPO) by the Government of Canada. The MPO works with proponents, federal departments, provinces and territories, Indigenous Peoples, and industry to identify projects that would offer the greatest benefits for Canadians.

Referral does not guarantee federal funding, regulatory approval, or listing under the Building Canada Act.

Building Canada Act process

Indigenous engagement and consultation

Indigenous consultation is a requirement in implementing the Building Canada Act. The Government of Canada is committed to upholding its duty to consult with Indigenous Peoples throughout the process. This commitment is guided by section 35 of the Constitution Act, 1982, while recognizing the United Nations Declaration on the Rights of Indigenous Peoples Act and the Principles Respecting the Government of Canada’s Relationship with Indigenous Peoples.

The Building Canada Act requires that Indigenous Peoples whose section 35 rights may be adversely affected by the carrying out of the project are consulted throughout the process: before determining whether a project is in the national interest, before the issuance of the conditions document, and before any amendment to the conditions document.

The Building Canada Act is in line with the Government of Canada’s commitment to the long-term wealth and prosperity of Indigenous Peoples. For this reason, the Government of Canada has doubled the Indigenous Loan Guarantee Program from $5 billion to $10 billion – enabling more Indigenous groups and organizations to become owners of major projects as we move forward with nation-building projects.

Learn more about Indigenous engagement and consultation as part of the implementation of the Building Canada Act.

The MPO is committing $40 million over two years to increase the capacity of Indigenous Peoples to engage on major projects early and consistently. For further details please visit the Participant Funding to Support Indigenous Participation in Major Projects Consultations website.

Provincial and territorial jurisdiction

The Building Canada Act applies to project approvals within federal jurisdiction and does not change required approvals within provincial or territorial jurisdiction. MPO seeks to align approval processes with provinces and territories.

Cooperation agreements with provinces establishing a “one project, one review” system under the Impact Assessment Act continue to apply to projects that have been added to Schedule 1 under the Building Canada Act.

Treaty-based impact assessment processes are not affected by the Building Canada Act, but the Building Canada Act may be used to accelerate federal regulatory and permitting decisions that are separate from those processes. Projects that are subject to modern treaty based review processes will continue to respect the treaty-based regulatory regime, including for example, co-management processes and northern impact assessment processes, in accordance with applicable legislation. In the Yukon, the Northwest Territories and Nunavut, federal conditions cannot be issued for a project until the applicable review board has completed its assessment, and a ministerial decision has been made.

Transparency and safeguards

The Building Canada Act contains parliamentary oversight, public reporting, and integrity requirements to ensure projects listed under Schedule 1 of the Building Canada Act meet standards of transparency and national security.

• Conflict-of-interest: Proponents and their directors, officers, or significant shareholders must not have violations under the Conflict of Interest Act, and any reporting public office holder with a potential conflict must recuse themselves. 
• National security: With respect to any foreign investments, all necessary measures must be taken to safeguard Canada’s national security interests. 
• Public project registry: Each project listed under Schedule 1 of the Building Canada Act must be listed in the registry with a detailed description, justification for national interest, expectations to meet listing criteria, cost estimates, and projected timelines.

Major Projects Office

The Major Projects Office (MPO) advances major projects in Canada and acts as a single window for project proponents into the federal regulatory process to simplify and accelerate project approvals. MPO brings together people and processes to move major projects forward faster, responsibly, and sustainably, while respecting the rights of Indigenous Peoples and protecting the environment.

Learn more about the MPO.

Taking action

Learn more about the approach we are taking to building one Canadian economy.