The federal government is progressing with alterations that will exclude several energy projects from a layer of its environmental assessment procedure. Simultaneously, a senior government insider reveals that the Liberals are set to retract proposed adjustments that would have circumvented regulations safeguarding at-risk species.
In May, the government put forth a series of regulatory modifications as part of an overarching effort to streamline project approvals. Among these proposals was one that would have waived certain projects from the “jeopardy test” mandated by the Species at Risk Act if they are deemed to serve the national interest.
Over 600 species are enlisted under the legislation. In August, five former chairs of a panel advising the government on endangered wildlife issued an open letter expressing concerns that the proposed changes might lead to the intentional extinction of endangered species.
A confidential senior government source disclosed to CBC News that forthcoming legislation will uphold the authority of the act, including jeopardy tests. The source spoke under anonymity as they were not authorized to speak publicly, with The Toronto Star initially reporting this information.
Recently, the government announced the exemption of specific energy projects from the oversight of its environmental review agency. The delisted projects, such as pipelines and transmission lines crossing borders and offshore renewable energy projects, will no longer undergo environmental review by the Impact Assessment Agency of Canada (IAAC). Instead, the Canada Energy Regulator (CER) will exclusively review them.
According to a government release, the CER possesses expertise in conducting impact assessments evaluating a project’s effects on various environmental aspects, including air, water, soil, climate change, wildlife, species at risk, and Canada’s environmental commitments.
Furthermore, certain oilsands extraction projects and fossil fuel-fired power generating projects are being removed from the list of projects subject to IAAC review, as stated in the news release.
Heather Exner-Pirot, the director of energy, natural resources, and environment at the Macdonald-Laurier Institute, believes that these changes will tangibly attract investments by reducing regulatory costs. She emphasized that upfront legal due diligence expenses are a significant burden for investors.
The adjustments follow Prime Minister Mark Carney’s pledge to streamline regulatory approvals for major projects post-election. Bill C-5, passed with bipartisan support after the 2025 election, empowers the government to expedite major projects deemed in the national interest, impacting reviews for other major projects without that designation.
Consultations concerning the proposed reforms concluded in July, with the publication of the consultation report coinciding with the announcement of regulatory changes on the same day.
Julia Levin from the Environmental Defence advocacy group criticized the decision, stating that Prime Minister Carney has once again undermined Canada’s environmental protections and climate advancements.
However, Exner-Pirot argued that an environmental assessment will still occur but will be conducted by a single regulator instead of two. She highlighted that this regulatory shift aligns with an upcoming “investors summit” hosted by Carney, demonstrating tangible actions to foster capital investments in Canada.
