OTTAWA — Parliament has passed controversial major projects legislation that Prime Minister Mark Carney says Canada needs to shore up its economy in the face of a trade war with the United States.
Bill C-5 gives the federal government sweeping new powers to speed up permitting for what the Liberals call "nation-building projects." The legislation's opponents have attacked the legislation as a massive power grab.
Here's what's C-5 does and what people are saying about it.
What problem is this trying to solve?
Canada has built few large projects over the past decade. That has led Conservatives, some provinces and some industry groups to argue that Ottawa's regulatory burdens are holding back growth.
The Liberals tried to streamline project approvals through Bill C-69, an impact assessment law meant to resolve environmental and Indigenous concerns upfront to keep projects from getting tied up in the courts.
Critics say the legislation has actually been holding back major infrastructure projects since it became law in 2019. Federal Conservatives have dubbed the law the "No More Pipelines Act" and it's deeply unpopular in Alberta and Saskatchewan.
Carney was elected in April with a mandate to diversify Canada's economy and ensure exports can more easily reach countries beyond the U.S.
Ottawa has also promised to build up northern infrastructure, in part to meet a NATO military alliance spending target for critical infrastructure.
Carney said Bill C-5 "creates the ability to flip … the attitude towards those projects once they are selected, once conditions are put in place — how those projects can move forward, as opposed to why."
Which projects could be fast-tracked?
We don't know yet. The government has pointed to ports, railways and sometimes pipelines. The Ontario government has suggested a major commuter highway tunnel could qualify as a nation-building project.
What are the provinces doing?
Some provinces have also passed legislation aimed at speeding up development.
Ontario's government has given itself the right through Bill 5 to designate "special economic zones" where it can suspend everything from safety rules to environmental and labour standards, with a focus on mining projects.
British Columbia's Bill 15 similarly allows the province to expedite the construction of anything from critical mineral mines to local hospitals.
What's in the federal bill?
The legislation has two main parts.
The first part looks to eliminate barriers to interprovincial trade and labour mobility and work to harmonize various regulations across the country. It also allows Ottawa to decide that goods and services that have met one province's requirements can be deemed to have met "comparable federal requirements" when moving interprovincially.
That might involve things like energy efficiency standards on household appliances.
The main part of the bill relates to fast-tracking approvals for projects that Ottawa decides are "in the national interest." The government says that decision is meant to be based on five criteria, including whether the project can "strengthen Canada’s autonomy, resilience and security," help fight climate change or "advance the interests of Indigenous peoples."
Getting that seal of approval would clear all federal approvals for the project — including virtually all environmental laws — while requiring the proponent to fulfil obligations set out by Ottawa.
Why the rush?
The government fast-tracked Bill C-5 with support from the Conservatives, and the House delivered the bill to the Senate with a programming motion that effectively required the upper chamber to vote on it by Friday.
One senator's attempt to split the bill into separate votes was rejected when the Speaker concluded that it wasn't possible at such a late stage.
Critics have been calling for a deeper review of the bill, arguing there is no need to rush it through because proposed fast-track projects won't start work before Parliament returns from its summer break.
The government also could have had Parliament sit through the summer, instead of sending MPs and senators home for 12 weeks.
How do Indigenous Peoples feel?
There is widespread opposition to the legislation among First Nations, Inuit and Métis leaders, who argue elements of it could be used to undermine their rights.
The Assembly of First Nations says the government's plan to set up advisory councils after the bill becomes law does not give real power to Indigenous communities on the ground, and they're upset that the bill didn't mention a UN declaration Ottawa has endorsed that promises those communities "free, prior and informed consent."
Some Indigenous communities have welcomed the legislation, including some Alberta communities with economic stakes in energy projects and the Manitoba Métis Federation. Others say they are ready to undertake widespread, disruptive protests against specific projects.
— With files from Kyle Duggan
This report by The Canadian Press was first published June 26, 2025.
Dylan Robertson, The Canadian Press
