Ontario Releases Draft Criteria for Special Economic Zones to Accelerate Investment

TORONTO, ON — The Ontario government has unveiled draft criteria for designating Special Economic Zones (SEZs), a new framework designed to fast-track approvals for projects of strategic importance and strengthen the province’s competitiveness in the global economy.

The proposed regulation, informed by consultations with Indigenous communities, was released this week to support further dialogue and feedback from communities, businesses, and stakeholders.

Building a More Resilient Economy

Minister of Economic Development, Job Creation and Trade Vic Fedeli said SEZs will help Ontario withstand global economic challenges.
“In the face of global economic uncertainty, our government has a mandate from the people to build the most competitive economy in the G7,” Fedeli said. “Special Economic Zones are a critical tool to expedite approvals and move projects of strategic importance forward faster, boosting our economic resilience and delivering lasting prosperity for Ontario workers and businesses.”

SEZs were first introduced under the Protect Ontario by Unleashing Our Economy Act, which was passed in response to U.S. tariffs. The legislation aims to create stable, predictable conditions for investment while ensuring Ontario’s high standards for environmental protection and its duty to consult with Indigenous communities are maintained.

Indigenous Consultation and Engagement

The province has conducted extensive consultations with more than 130 Indigenous communities, including regional sessions in Toronto, Thunder Bay, Sudbury, and London, as well as ongoing one-on-one meetings with communities.

Greg Rickford, Minister of Indigenous Affairs and First Nations Economic Reconciliation, said the government’s approach is rooted in partnership.
“We are steadfast in our commitment to the duty to consult on the implementation of future use of Special Economic Zones, and in working in partnerships with communities and leadership to ensure that new projects support First Nations-led economic development and prosperity,” Rickford said.

Archaeology Exemption Criteria

The draft regulation also includes proposed changes to the Ontario Heritage Act that would allow archaeology exemptions for certain projects. Minister of Citizenship and Multiculturalism Graham McGregor said these measures are intended to balance cultural preservation with economic opportunity.
“Feedback on the OHA archaeology exemption criteria will help protect important archaeological sites while providing the clarity needed to attract investment, protect good-paying jobs, and strengthen Ontario’s economy by making Ontario the fastest permitting jurisdiction in North America,” McGregor said.

What’s Next

The government says it will continue consultations as the SEZ regulatory framework evolves, ensuring community feedback and Indigenous partnerships remain central to shaping Ontario’s economic future.

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