As we wrote in our May 7, 2025, blog, Ontario Bill 5 (“The Protect Ontario by Unleashing Our Economy Act 2025”) is intended to, among other things, accelerate natural resource development in every part of the province.
While likely unrelated to Bill 5, it was recently announced that the Marathon Palladium Project got its final (Ontario) provincial permit. As Northern Ontario Business put it, “It’s been a long time coming.”
Generation Mining president and CEO Jamie Levy said: “With this final permit, Generation believes that the Marathon Project will be a major step forward in securing domestic supplies of copper and palladium – essential elements for clean energy and advanced technologies (Source: Mining Technology).
Federal Legislation Bill C-5
In addition to provincial efforts to boost natural resource development, the federal government recently passed legislation with the same aim.
Bill C-5, the “One Canadian Economy Act,” has two parts: 1) Free Trade and Labour Mobility in Canada Act and 2) Building Canada Act.
On June 26, 2025, the Royal Assent posting by the Parliament of Canada provides details regarding the Building Canada Act. “The purpose of this Act is to enhance Canada’s prosperity, national security, economic security, national defence, and national autonomy by ensuring that projects that are in the national interest are advanced through an accelerated process that enhances regulatory certainty and investor confidence, while protecting the environment and respecting the rights of Indigenous peoples.”
Factors that may be considered include any factor that the Governor in Council considers relevant, including the extent to which the project can
- 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.
Critical Reviews of Bill C-5 on the Political Right and Left
Provincial and federal legislation is attempting to boost natural resource production (Photo by Artem Makarov on Unsplash).
While it is generally agreed that we need to accelerate the process when it comes to developing our natural resources, it does not appear that Bill C-5 is getting favourable reviews.
In the “Summary” of Bill C-5, they provide the following: “Part 2 enacts the Building Canada Act, which, among other things,
(a) authorizes the Governor in Council to add the name of a project and a brief description of it to a schedule to that Act if the Governor in Council is of the opinion, having regard to certain factors, that the project is in the national interest.” This is the crux of the criticism of the Bill.
The conservative Fraser Institute wrote recently that, “The cabinet (in practical terms, the prime minister) will determine the ‘national interest,’ not the private sector.” They go on to say that Bill 5 will allow the cabinet to go around existing legislative hurdles, such as Bill C-69 and Bill C-48. Fraser Institute states that this opens up the Carney government to cronyism.
Fraser Institute also wrote, “Indeed, according to some reports, some senators are referring to Bill C-5 as the ‘trust me’ law, meaning that because there aren’t enough details and guardrails within the legislation, senators who vote in favour are effectively ‘trusting’ Prime Minister Carney and his cabinet to do the right thing, effectively and consistently over time.”
From the Climate Action Network: “This proposed process for projects deemed ‘in the national interest’ would directly undermine environmental protections, while shutting down democratic decision-making. Respecting the rights of Indigenous Peoples, ensuring clean air and water, and upholding due process are not ‘red tape’: they are the foundations of a healthy democracy, and protect true nation-to-nation relationships.”
The Environmental Law Centre recently wrote, “Part 2 will enact the Building Canada Act, which allows designation of ‘projects of national interest’ (PONIs), which will have a starting point of what conditions need to be applied to the project for environmental protection as opposed to the usual regulatory question of whether a project should be approved and on what conditions. All decision-making authority for PONIs will be vested in one Minister.”
The Indigenous Watchdog wrote, “Of particular concern is Part 2, the Building Canada Act. If passed, it would apply to projects that the federal cabinet designates as being in the ‘national interest.’ Designating the projects acts as their approval — in other words, projects will get the green light before they are reviewed. This approach flies in the face of over half a century of experience showing that governments make better decisions when they understand the consequences of those decisions ahead of time.”
Canada’s natural resources are a vital part of our overall economy. According to the Canadian Chamber of Commerce, our natural resources (oil, gas, minerals, and lumber) make up nearly 20% of our GDP and 58% of exports to the United States.
The Canadian Chamber of Commerce summarizes some of the challenges with Bill C-5. “Bill C-5 is just the first step. The onus is now on the federal government to deliver — working with Canadians, Indigenous rights holders, and the private sector. It’s time to build momentum in Canada and show the world we’re serious about growth, energy, and getting big things done.”
Environmental Assistance
Do you need assistance on a project involving natural resources? Dragun’s Senior Consulting Partner, Dr. Joel Gagnon, has experience in the mining and resource sectors. Further, Dr. Gagnon has a specialization in analytical and applied aqueous geochemistry. If you have questions or need additional information, you can contact us at 519-948-7300.
Alan Hahn drafted this blog. Alan has an undergraduate degree in Environmental Studies and completed a graduate program in Environmental Management. He has worked in environmental management for more than 45 years. He has written hundreds of blogs and articles. His published work includes HazMat Magazine, BizX Magazine, Michigan Lawyers Weekly, GreenStone Partners, Manure Manager Magazine, and Progressive Dairy.
Christopher Paré, P.Geo, reviewed this blog. Chris is a senior geoscientist and manager of Dragun’s Windsor, Ontario, office. Chris has more than 30 years of experience on projects ranging from environmental site assessments (Phase One/Two ESA), excess soils, remedial investigations, soil and groundwater remediation, Permits to Take Water, Records of Site Conditions, vapour intrusion, and site decommissioning. Chris is a frequent speaker, author, and expert witness. See Chris’ bio. Follow Dragun Corporation on LinkedIn, X, or Facebook.
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