One Canadian Economy Act – a landmark Bill to fast-track national projects

Background

Bill C-5, officially titled the ‘One Canadian Economy Act’ (“the Act”), received royal assent on 26 June 2025. This landmark legislation enables the federal Cabinet to streamline approvals processes and bypass certain provisions of federal laws for major projects that could potentially boost the economy.

The legislation does not prescribe specific projects, but Prime Minister Mark Carney has previously indicated that it could be used for initiatives such as energy corridors (including pipelines and electricity grids), as well as for the expansion of mines and ports. These will be major national infrastructure projects deemed to be in the national interest.

We have previously commented on Mark Carney’s vision to “build big, build bold, and build now” in our articles which can be accessed here and here. The Act represents a tangible legislative step towards that vision and complements recent infrastructure developments in the Greater Toronto Area, as discussed in our articles which can be accessed here and here.

Content of the Act

The Act is divided into two parts:

Part 1: Free Trade and Labour Mobility in Canada

Part 1 of the Act allows the Government of Canda to develop regulations to assist in the determination of comparable federal and provincial/territorial requirements and remove the duplicative burden for businesses. Under the Act, a federal standard is considered equivalent to a provincial/territorial one if it relates to the same aspect of a good or service. This means that if a good or service is produced or distributed which complies with the standards of its originating province or territory, it is automatically deemed to meet any equivalent federal standard. Part 1 of the Act could capture things like energy efficiency standards on household appliances.

Part 2: Building Canada

The main part of the Act can be found in Part 2, which allows the federal Cabinet to declare an infrastructure project to be in the “national interest”. The criteria that will be weighed in decisions to move forward with national infrastructure projects include the extent to which a project will:

• 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; and
• contribute to clean growth and to meeting Canada’s objectives with respect to climate change.

After consultations with provinces, territories and impacted Indigenous rights-holders, if the Governor in Council is of the opinion that a project may be in the national interest, an Order in Council will add it to a Schedule of projects. A notice that includes the name and description of the project will also be published in the Canada Gazette for 30 days so that there is an opportunity for individuals to provide feedback on the choice. Projects can be added to the Schedule of projects over the course of five years following the Act coming into force.

The intent of the Act is to ensure that nation-building projects complete the federal review process within two years, by focusing the reviews on how to get the project built, instead of whether it should be built. Both parts of the Act clearly indicate that the Government of Canada is committed to a ‘one project, one review’ approach, seeking to reduce project approval duplication between the federal and provincial/territorial governments.

Reception

The Act marks a further response to tariffs imposed by Trump on Canadian steel, aluminium and its auto sector. While supporters of the Act have argued that it is a critical step in reducing Canada’s dependence on the United States amid trade tensions, Indigenous groups and environmental activists say that expediting the projects could stifle opposition voices and fear that they will not be consulted adequately before the projects are approved.

Carney has since stressed that consulting with Indigenous Peoples throughout the approval stage will be an important part of the process, and that the legislation will ensure that environmental protections are maintained for these projects.

Conclusions

The Act marks a transformational shift in Canada’s infrastructure and trade policy, as it enshrines sweeping federal powers to reduce internal trade barriers and accelerate “nation-building” projects, while signalling an ambition to pivot from reaction (why build?”) towards delivery (“how do we build?”). Doug Ford, Premier of Ontario, has remarked that ‘we’re building a more competitive, resilient and self-reliant economy so we’re ready to take on whatever comes our way’. Given current trade tensions, the Act has come at a pivotal moment in Canadian history.

At Beale & Co, we have extensive experience advising on large-scale infrastructure and construction projects across Canada and internationally. With the introduction of the Act, we are well positioned to help clients understand its implications, identify opportunities for strategic advancement, and navigate evolving compliance requirements. We are excited to have opened a new office in Toronto, to further support both domestic and international clients with their construction and infrastructure project needs. The introduction of the Act only indicates further opportunities and developments for our clients, and we look forward to helping turn vision into delivery as implementation progresses. Whether you are planning a major infrastructure development or seeking clarity on how the Act may impact your operations, our Toronto-based team is ready to assist.

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