Canada and Ontario Sign Co-operation Agreement for Environmental and Impact Assessments

Today, the federal government and the Government of Ontario announced a new co-operation agreement on environmental and impact assessment, marking a significant step in Ottawa’s effort to accelerate major infrastructure and resource projects amid growing global trade uncertainty. The agreement, unveiled jointly by Prime Minister Mark Carney and Ontario Premier Doug Ford, establishes a “One Project, One Process, One Decision” framework for major projects in Ontario. The Framework aims to reduce duplication between federal and provincial assessment processes while preserving environmental and Indigenous rights protections.


The announcement is framed as part of the federal government’s broader economic and trade strategy. With the United States reshaping its global trade relationships and introducing heightened uncertainty for Canadian exporters, the Carney government is emphasizing diversification, domestic capacity-building, and resilience. Streamlining project approvals is positioned as a core economic lever to unlocking investment, accelerating construction timelines and strengthening Canada’s competitiveness in energy, critical minerals, transportation, and other infrastructure projects of national significance.

Under the new agreement, Canada and Ontario will collaborate on a project-by-project basis to determine the most appropriate assessment pathway. In some cases, the federal government may rely on Ontario’s environmental assessment process; in others, a coordinated federal-provincial review will be undertaken. The intent is to eliminate parallel reviews and duplicative requirements while preserving the ability of both governments to meet their respective statutory obligations.

From a policy perspective, this agreement signals a step forward on the federal impact assessment regime, which has faced criticism from industry, provinces and investors about timelines and uncertainties surrounding the Impact Assessment Act. At the same time, the Framework is designed to demonstrate that strong environmental oversight and Indigenous rights protections can coexist with faster, more predictable approvals. The inclusion of explicit language on Indigenous engagement and federal support reflects ongoing sensitivity to constitutional duties and recent court decisions, while also aligning with expanded federal tools such as the Indigenous Loan Guarantee Program and new funding to support Indigenous participation in major projects.

The Canada–Ontario agreement is the third of its kind, following a newly signed agreement with New Brunswick and an earlier agreement with British Columbia in 2019. Similar agreements between Canada and the governments of Manitoba and Prince Edward Island are nearing completion, and discussions with Alberta are underway, with a target of April 1, 2026. Collectively, these agreements are becoming a key operational pillar of the federal Major Projects Office (MPO), which is designed to coordinate and accelerate projects deemed to be of national economic interest.

For project proponents, the agreement does not eliminate environmental assessment requirements. However, it does promise efforts towards greater clarity, coordination, and speed. For Indigenous communities, the federal government is emphasizing increased capacity funding and financing tools to support earlier and more meaningful participation, including expanded access to loan guarantees.

Overall, the Canada–Ontario agreement reflects the focus of both the Carney and Ford Governments to shift away from process-heavy reviews and toward outcome-focused coordination, with major projects positioned as central to Canada’s economic sovereignty, trade diversification, and long-term growth strategy.