Canada, Ontario sign agreement to fast-track major projects

The federal and Ontario governments have signed a new agreement aimed at speeding up the approval of major infrastructure projects in the province by reducing regulatory overlap.

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The federal and Ontario governments have signed a new agreement aimed at speeding up the approval of major infrastructure projects in the province by reducing regulatory overlap while maintaining environmental protections and Indigenous consultation requirements.

Prime Minister Mark Carney and Ontario Premier Doug Ford announced Thursday a new co-operation agreement on environmental and impact assessments that adopts a “one project, one review” approach for major developments in Ontario.

Under the agreement, the two governments will streamline assessments by relying on a single process wherever possible, either through Ontario’s environmental review system or a coordinated federal-provincial assessment, depending on the project. The goal is to minimize duplication, shorten timelines and provide greater regulatory certainty for investors.

The deal allows the federal Impact Assessment Agency of Canada to rely on Ontario’s environmental assessment process for projects that are primarily provincially regulated, while still addressing adverse effects under federal jurisdiction. For projects involving federal lands or undertakings, Ottawa committed to integrating Ontario’s requirements into a single harmonized review, where appropriate.

Carney said the agreement is part of the federal government’s broader effort to strengthen Canada’s economic resilience amid global trade disruptions, including shifting U.S. trade policies.

“Canada’s new government is focused on what we can control — building a stronger, more sustainable, more independent Canadian economy,” Carney said in a statement. “Our agreement with Ontario will build major projects faster, helping to diversify our trade partners, strengthen our industries, and empower more Canadians with high-paying careers.”

Ford said the agreement would remove what he called unnecessary red tape that has delayed large projects for years, including resource and infrastructure developments in northern Ontario.

“With this historic agreement, our two governments are working together to protect Ontario and Canada by removing the unnecessary red tape and regulatory duplication that has stood in the way of nation-building projects for too long,” Ford said.

He pointed specifically to the economic potential of Ontario’s Ring of Fire region.

The agreement affirms that environmental responsibilities are shared between governments and reiterates commitments to consult Indigenous communities early and meaningfully, and to respect Aboriginal and treaty rights. It also states that neither government is ceding jurisdiction by entering the arrangement.

Federal and provincial officials will share information earlier in the project planning process, coordinate consultation with Indigenous communities, and align permitting requirements where possible to avoid duplicative conditions and reporting.

The Ontario agreement follows similar federal arrangements signed earlier last month with Alberta.