Touted as a fast track to prosperity during tough economic times, the law has two main parts:
reducing internal trade barriers across provinces and territories,
accelerating the approval process for “nation-building” projects deemed in the national interest.
But amid excitement over potential economic gains, serious concerns are being raised about the risks this accelerated approach could pose to the environment.
What Is Bill C-5?
Bill C-5 is really two laws in one:
The Building Canada Act — This part gives the federal government new powers to fast-track major infrastructure projects if they’re considered to be in the “national interest.” Projects that meet the criteria can skip years of red tape and go through regulatory review faster (within two years). Instead of asking if they should go ahead, the process will now focus on how to get them done.
The Free Trade and Labour Mobility in Canada Act — This section removes certain barriers between provinces and territories. Goods, services, and professional licenses approved in one province would be recognized federally, unless it poses unacceptable risks to the health, safety and security of Canadians.
Why Now?
Canada’s economy has been feeling the squeeze from the recent U.S. trade war. Prime Minister Mark Carney is pitching this as a “nation-building” move to fight back, boost growth, and get shovels in the ground faster.
The Promise: Faster Projects, Fewer Delays, More Investment
At the core of Bill C-5 is the Building Canada Act, which gives the federal government the power to fast-track big infrastructure projects it sees as important to the whole country. Pipelines snaking through boreal forests, expanded ports along fragile coastlines, and power lines stretching across mountains and plains. These are the kinds of large-scale developments that have historically been mired in years of environmental reviews.
To streamline the process, the law adopts a “one project, one review” model, minimizing overlap between provincial and federal assessments. It also calls for a Major Projects Office and the formation of an Indigenous Advisory Council, comprised of First Nations, Inuit, and Métis leaders. While this advisory body offers important perspectives, it doesn’t replace the legal duty to consult Indigenous Peoples, many of whom are stewards of the lands where these projects may unfold.
The Problem: Rushed Process, Rising Concerns
While the bill includes language about respecting Indigenous rights, many leaders argue the process to get here has been anything but collaborative. The legislation passed just three weeks after being introduced, with no amendments in the Senate.
“We do not want success and progress to come on the backs of Indigenous Peoples,” Prosper said in a powerful Senate speech. “We want to be at the table, making decisions alongside Canadian politicians, because these decisions affect us. They affect our lands and resources.”
Mi’kmaw Senator Brian Francis of P.E.I, also raised concerns that the promised economic benefits won’t be fairly shared and that this law might actually make things worse.
While Carney has pledged to meet personally with Indigenous leaders starting July 17 to engage in deeper dialogue, the process to date has left many feeling sidelined.
“We do not want success and progress to come on the backs of Indigenous Peoples.”
The Environmental Risk: Shorter Reviews, Bigger Consequences
Under Bill C-5, some projects could bypass key parts of the Impact Assessment Act, which was designed to protect the environment and Indigenous rights. That means reviews could be shorter, narrower in scope, and less thorough.
Critics worry that in the rush to build, we’ll ignore:
Biodiversity loss
Cumulative environmental impacts
Canada’s legally binding climate targets
There are concerns that shorter, narrower reviews might not properly assess how projects affect ecosystems, communities, or long-term sustainability, putting Canada’s climate commitments at risk just as the country faces growing pressure to act on the climate crisis.
What Counts as a “Project of National Interest”?
Great question — and one without a clear answer yet.
To qualify, a project must meet criteria like:
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.
Projects will be added to a formal “Schedule” after consultation and a 30-day public comment period.
The Free Trade Angle: Labour Mobility and Deregulation
The second part of Bill C-5 is all about making it easier to do business and work across Canada. Right now, different provinces and territories can have different rules for goods, services, and jobs, which can slow things down.
Under the new law, if a product or service meets the rules in one province or territory, it’ll be accepted at the federal level for trade across the country, unless it poses a serious risk to public health, safety, the environment, or international obligations.
The same goes for workers. If you’re certified to do a job in one province, you can now do that same job in a federal setting without needing extra approvals or paperwork.
This could make life easier for small businesses, tradespeople, and workers, who often face red tape when moving or expanding across provincial lines. But it might also lead to weaker national standards, especially if the rules in one province are less strict than others.
The Bottom Line
Bill C-5 is a bold attempt to modernize Canada’s economy and make us more resilient, but it’s rolling out at high speed and raising serious red flags. The government insists that it can strike a balance between speed and sustainability but achieving this will require more than commitments on paper.
At this moment of transition, Canada faces a critical test: can we build fast without breaking what matters most?
This article is intended for informational purposes only. While every effort has been made to ensure accuracy, the content reflects publicly available information and commentary as of the publication date. It does not constitute legal advice or an official position of any government or organization. Readers are encouraged to consult official government sources or legal professionals for specific guidance on Bill C-5 and related legislation.
