A new federal law has changed the rules governing major infrastructure projects, with potential implications for the participation of Indigenous Peoples impacted.
In June, the federal government passed Bill C-5, the One Canadian Economy Act, which simultaneously enacted the Building Canada Act (the “Act”). The Act introduced a faster and simpler approval process for major projects of national interest. While the Act provides for Indigenous consultation, Indigenous groups have expressed concerns about respect for their rights.
This article provides an overview of the Act and discusses the issues and opportunities for Indigenous Peoples emerging from this new framework.
Reforming internal trade and major projects
The Act establishes a streamlined process for projects of national interest, with a clear objective: to reduce approval times to two years, while maintaining environmental requirements and Indigenous consultation.
The Government of Canada may designate a project as being “in the national interest” if it enhances economic or energy development, improves internal trade corridors, or meets strategic objectives. This designation is discretionary and precedes any environmental or social assessment.
The Government of Canada must consult with the provinces, territories, and Indigenous Peoples to develop an initial list of national interest projects, taking into account certain factors that include, in particular, the extent to which the project can:
- Strengthen Canada’s autonomy, resilience and security
- Provide economic or other benefits to Canada
- Have a high likelihood of successful execution
- Advance the interests of Indigenous Peoples
- Contribute to sustainable growth and to Canada’s climate change goals
Once a project is deemed as being in the national interest, it benefits from a favourable legal presumption: the authorizations normally required under federal law are deemed to have been granted. A single authorization document is then issued by the minister responsible, replacing the permits and approvals that are usually required, greatly simplifying and speeding up the regulatory process.
The government has committed to a two-year timeline for the entire approval process, including designation, assessment, and authorization. This timeline will limit the time available to Indigenous communities to review a project’s potential impacts on their rights and make representations in this regard.
The government may exempt a designated project from the application of certain federal laws, such as the Canadian Navigable Waters Act or the Canadian Environmental Protection Act. This exemption raises significant concerns about the protection of territories and ecosystems.
As of November 13, 2025, 13 projects have been submitted for further assessment and consultations, including two in Québec.
Issues and opportunities for Indigenous Peoples
Although the Act claims to respect the rights recognized in section 35 of the Constitution Act, 1982, and the United Nations Declaration on the Rights of Indigenous Peoples, it does not provide a binding mechanism to ensure meaningful consultation or the free, prior, and informed consent of Indigenous Peoples.
Nevertheless, the federal government has committed that no project will be added to the list of national interest projects without prior consultation with Indigenous rights holders. An Indigenous Advisory Council has been established to advise the minister responsible; however, it does not replace mandatory consultations. The Council currently consists of eleven members from various Indigenous communities across Canada, including two from Québec.
In addition, funds will be allocated to strengthen the capacity of Indigenous Peoples to participate in these processes meaningfully. The federal government has also doubled the Indigenous Loan Guarantee Program from $5 billion to $10 billion to encourage their economic participation in major projects.
Conclusion
The implementation of the Act marks a turning point for major projects in Canada. By simplifying regulatory procedures and centralizing authorizations, the government aims to stimulate rapid, structured growth. While it provides for consultations with Indigenous Peoples, several elements remain unclear, particularly regarding the actual scope of their participation and the protection of territories.
While the federal government is still working on the initial list of projects of national interest, Indigenous Peoples affected by these projects may wish to seek legal advice to promptly initiate a legal impact analysis, support their consultation processes, and prepare for negotiations on economic participation agreements.