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A framework for rebuilding Canada

June 2025

Following the recent Canadian federal election, Prime Minister Mark Carney unveiled a bold vision to rebuild Canada through transformative infrastructure initiatives. Andrés Durán and Ben Spannuth previously examined the vision for “one Canadian economy”, accessed here. Here we explore the framework supporting that vision which has developed to date.

First Ministers’ Meeting

On 2 June 2025, Canada’s First Ministers convened to discuss building a stronger, more competitive national economy. A key focus was eliminating interprovincial trade barriers. Several provinces have signed memorandums of understanding (MOUs) to enhance the movement of goods, services, investment, and labour. Ontario, the largest player in interprovincial trade, has partnered with Nova Scotia, New Brunswick,[1] Manitoba,[2] Saskatchewan,[3] Alberta, and Prince Edward Island.[4]

While the MOUs are non-binding, they signal a strong intent to lay the groundwork for a unified Canadian economy.

The First Ministers also discussed criteria for identifying major projects of national interest. Projects considered under this framework must:

• strengthen Canada’s autonomy, resilience, and security.
• provide clear national economic benefits.
• be viable and executable.
• be a priority for Indigenous communities.
• demonstrate clean growth potential through sustainable practices or clean technologies. [5]

Potential projects mentioned included pipelines, decarbonised oil and gas, nuclear development, energy grid interties, and transportation – all with a focus on energy independence and arctic sovereignty.

Carney reaffirmed his commitment to a streamlined federal review process – “one project, one review.” This approach will consolidate oversight into a single federal office and cap the review period at two years, down from five. [6] Provincial and territorial assessments will be recognised to avoid duplication.

Becoming an energy superpower

In a closed-door meeting with energy executives, the Prime Minister discussed partnerships aimed at positioning Canada as an energy superpower.[7] While pipelines remain central to the conversation, Carney emphasized that national interest projects may also include renewable energy and carbon capture initiatives, such as the Pathways Alliance project[8].

In Ontario, the government passed Bill 5, allowing the creation of “special economic zones” where provincial laws – including environmental and labour regulations – can be suspended for approved proponents. Premier Doug Ford has identified the resource-rich, infrastructure-poor “Ring of Fire” in northern Ontario as a target for this designation. Whether projects in the area will meet federal criteria remains to be seen.

Bill C-5

On 6 June 2025, the federal government introduced Bill C-5 to effect its promises to create “one Canadian economy” and create “an accelerated process that enhances regulatory certainty and investor confidence”.[9]

The Bill enacts two pieces of legislation: the Free Trade and Labour Mobility in Canada Act and the Building Canada Act.

The Free Trade and Labour Mobility in Canada Act:

• Establishes a statutory framework to:
  • remove federal barriers to interprovincial trade of goods and services, and
  • improve labour mobility within Canada.
• Goods and services:
  • goods/services meeting provincial/territorial requirements are deemed to meet comparable federal requirements for interprovincial trade/provision.
• Labour mobility:
  • provincial/territorial authorisations to practice occupations are recognised federally.
  • holders of such authorisations can receive comparable federal authorisations.
• Provides the Governor in Council with regulation-making power regarding:
  • federal barriers to interprovincial movement of goods.
  • federal barriers to provision of services.
  • movement of labour within Canada.

The Building Canada Act:

• Allows Cabinet to:
  • add projects to a schedule if they are deemed in the national interest, within a five-year window.
• For projects named in the schedule:
  • required determinations/findings/opinions under certain acts and regulations are deemed in favour of permitting the project.
• Requires the designated minister to issue a document to the project proponents that:
  • sets out applicable conditions.
  • is deemed to serve as required federal authorisation under certain acts/regulations.

Importantly, the Building Canada Act sets out the “criteria” for projects of national interest revealed at the First Minister’s Meeting as a non-exhaustive list of relevant considerations for the addition of any project to the national interest schedule.

The Building Canada Act also provides that an office may be established for national interest projects to “coordinate the exercise of powers and duties” under the Act and serve as a “source of information and point of contact” for the proponents.

The Building Canada Act gives Cabinet the power to dispense with the application of any provision of certain Acts of Parliament listed in the Act, including the Impact Assessment Act – also known as Bill C-69 – colloquially labelled by some parties as the “no pipelines act” for its focus on environmental protections.

The tabling of Bill C-5, and the government’s desire to pass the legislation before the summer break, signals a clear intention that it is prepared to see Canada build bold and quickly to enhance the country’s prosperity, national security, economic security, national defence, and sovereignty.

Conclusion

Since our last update, the federal government’s vision has begun to take shape, with the provinces taking steps in the same direction. Project proponents now have a clearer understanding of the approval process for projects of national interest, and in Ontario, regulatory pathways are being cleared to accelerate development.

It remains to be seen which projects will be approved and how resistance to this accelerated approach will unfold. Still, the construction industry – especially contractors and consultants – should take note. Significant opportunities are emerging.

Beale & Co is excited to have opened a new office in Toronto, supporting our Canadian and international clients with their construction and infrastructure project needs. Our team has experience in both Ontario and BC, and can assist you in navigating the coming changes to the Ontario Construction Act. Should you have any questions on this article or require tailored advice in respect of future opportunities or projects in Canada, please contact Andrés Durán and Dylan Dilks.

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[1] Ontario Unlocking Free Trade Within Canada | Ontario Newsroom

[2] Ontario and Manitoba Sign Memorandum of Understanding to Tear Down Interprovincial Trade Barriers | Ontario Newsroom

[3] Ontario Signs Agreement to Unlock Free Trade with Saskatchewan | Ontario Newsroom

[4] Ontario Signs Agreements to Unlock Free Trade with Alberta and Prince Edward Island | Ontario Newsroom

[5] First Ministers’ statement on building a strong Canadian economy and advancing major projects | Prime Minister of Canada

[6] Prime Minister Carney meets with premiers and shares his plan to build one strong Canadian economy | Prime Minister of Canada

[7] Carney discusses ‘partnerships’ with oil and gas executives in Calgary | CBC News

[8] Working Together for Canada’s Energy Future- Pathways Alliance

[9] Government Bill (House of Commons) C-5 (45-1) – First Reading – One Canadian Economy Act – Parliament of Canada

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