The Canadian government is progressing with modifications that will exclude certain energy projects from a layer of its environmental assessment procedure. Simultaneously, a high-ranking government insider disclosed that the Liberals are set to retract proposed changes that would have circumvented rules safeguarding endangered species.
In May, the government introduced a series of regulatory adjustments as part of an initiative to streamline project approvals. One of these proposals aimed to waive specific projects from the “jeopardy test” mandated under the Species at Risk Act if they are considered of national interest.
More than 600 species are categorized under this legislation. In August, five former chairs of a panel advising the government on endangered wildlife expressed concerns in an open letter that the proposed alterations could lead to the deliberate extinction of vulnerable species.
A confidential source within the federal government informed CBC News that forthcoming legislation will uphold the authority of the act, including jeopardy assessments. The disclosure was made in confidence as the source lacked authorization to speak publicly. Initially reported by The Toronto Star.
Projects now excluded from certain regulatory reviews
The government officially declared on Wednesday that specific energy projects will be removed from the oversight of its environmental review agency to streamline the assessment process for those projects. Pipelines, transmission lines crossing borders, and offshore renewable energy projects will no longer undergo environmental reviews by the Impact Assessment Agency of Canada (IAAC) as per new regulations published in the Canada Gazette.
Instead, these projects will be exclusively evaluated by the Canada Energy Regulator (CER). A government press release mentioned that the CER possesses expertise in conducting impact assessments covering various environmental aspects such as air quality, water resources, soil conditions, climate impact, wildlife, endangered species, and Canada’s environmental commitments.
Certain oilsands extraction projects and fossil fuel-fired power generation projects will also be removed from the list of projects subject to IAAC reviews, the press release indicated.
“These projects will remain subject to equally rigorous provincial and federal assessment processes,” the release stated.
Heather Exner-Pirot, from the Macdonald-Laurier Institute, highlighted that these changes will attract investments by reducing regulatory costs that burden companies with upfront legal expenses before generating any revenue.
Criticism from environmental groups
These adjustments follow Prime Minister Mark Carney’s pledge to expedite regulatory approvals for major projects during the previous election. The Liberals, with Conservative support, passed Bill C-5 shortly after the 2025 election, empowering the government to fast-track projects deemed in the national interest. However, these changes will affect reviews for other major projects not falling under that designation.
The government concluded consultations on the proposed reforms in July. The report on these consultations was released on the same day the regulatory changes were announced.
Environmental advocacy group Environmental Defence’s Julia Levin criticized the decision, stating, “Prime Minister Carney has once again taken a wrecking ball to Canada’s environmental safeguards and climate progress.”
Exner-Pirot argued that there will still be an environmental assessment, but now conducted by a single regulator instead of two. She pointed out that these regulatory adjustments align with Carney’s upcoming “investors summit,” demonstrating tangible efforts to attract capital to Canada.