Canada and Ontario Sign New Agreement to Speed Up Major Infrastructure Projects
Canada–Ontario major projects agreement aims to streamline approvals while maintaining environmental and Indigenous protections
OTTAWA — The federal government and the Province of Ontario have signed a new co-operation agreement aimed at accelerating the approval and construction of major infrastructure projects across the province, adopting a streamlined “one project, one review” approach to environmental and impact assessments.
Prime Minister Mark Carney and Ontario Premier Doug Ford announced the agreement Thursday, formally titled the Co-operation Agreement between Ontario and Canada on Environmental and Impact Assessment. The deal is designed to reduce regulatory duplication while maintaining environmental protections and Indigenous consultation requirements.
A Shift Toward Faster Project Approvals
Under the new framework, federal and provincial governments will coordinate assessments for major projects so that only one primary review process is required. Depending on the project, Canada and Ontario will either rely on Ontario’s assessment process or conduct a joint federal-provincial review, rather than running parallel processes.
The agreement allows governments to determine the most effective assessment pathway on a case-by-case basis, with the stated goal of reducing approval timelines without weakening environmental oversight.
Federal officials say the Impact Assessment Agency of Canada will continue to provide expertise in areas such as environmental protection, Indigenous engagement, and sustainable development, ensuring constitutional and legal obligations are upheld.
For too long, major Canadian projects have been stalled by lengthy approval processes.
Premier @fordnation and I are streamlining that process and speeding up approvals to build major projects, create good careers, and grow our economy — faster.
— Mark Carney (@MarkJCarney) December 18, 2025
Economic and Trade Context
The announcement comes as Canada looks to reduce its reliance on a single trading partner and accelerate nation-building infrastructure amid global economic uncertainty. The federal government has increasingly framed major project approvals as central to trade diversification, energy security, and long-term competitiveness.
Ontario is expected to be a major beneficiary, with projects ranging from energy infrastructure to critical minerals development — including future Ring of Fire-related initiatives — potentially moving forward more quickly under the new framework.
Part of a Broader National Strategy
The Ontario agreement is the third federal-provincial impact assessment co-operation deal, following agreements with British Columbia (2019) and New Brunswick earlier this week. Ottawa says similar agreements with Manitoba and Prince Edward Island are nearing completion, while discussions with Alberta are ongoing.
The agreement also aligns with the federal government’s Major Projects Office (MPO) strategy, created under the Building Canada Act, which came into force in June 2025. The MPO is tasked with coordinating large-scale infrastructure projects and improving project certainty for investors.
According to the federal government, projects already referred to the MPO represent more than $116 billion in potential investment nationwide.
Indigenous Engagement and Environmental Safeguards
Both levels of government stressed that the agreement does not remove environmental standards or Indigenous consultation requirements. Ottawa has allocated $40 million over two years to support Indigenous participation in major project reviews and expanded the Indigenous Loan Guarantee Program from $5 billion to $10 billion to support equity ownership in large developments.
Federal officials also cited Statistics Canada data showing regulatory requirements grew by 37 per cent between 2006 and 2021 — a trend they argue has contributed to slower business investment.
What Happens Next
With the agreement now in place, Canada and Ontario will begin applying the new review model to eligible projects immediately. Additional provincial agreements are expected in the coming months as the federal government works to standardize faster approval processes nationwide.
Source: PMO
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