The federal government is moving forward with alterations that will exclude certain energy projects from a portion of its environmental assessment procedure. Simultaneously, a senior government insider indicates that the Liberals are set to retract proposed adjustments that would have circumvented regulations safeguarding endangered species.
In May, the government introduced a series of regulatory modifications aimed at expediting project approvals. One of these proposals sought to waive specific projects from the “jeopardy test” mandated under the Species at Risk Act, provided they are deemed to serve the national interest.
Over 600 species are identified under this law. In August, five former chairs of a wildlife preservation advisory panel issued an open letter expressing concerns that the proposed changes could lead to the intentional extinction of endangered species.
Speaking anonymously to CBC News, a senior government source revealed that forthcoming legislation will uphold the authority of the act, including jeopardy assessments. The Toronto Star initially reported this development.
Projects now excluded from certain regulatory scrutiny
The government publicly announced on Wednesday that it would exclude particular energy projects from the oversight of its environmental review agency, asserting that this move will streamline the evaluation process for specific projects.
Projects such as pipelines, transmission lines crossing borders, and offshore renewable energy initiatives will no longer undergo environmental assessments by the Impact Assessment Agency of Canada (IAAC), as per new regulations disclosed in the Canada Gazette. Instead, these projects will be exclusively evaluated by the Canada Energy Regulator (CER).
A government press release stated, “The CER possesses the expertise to conduct impact assessments evaluating a project’s effects on various environmental aspects, including air, water, soil, climate change, wildlife, endangered species, and Canada’s environmental commitments.”
Additionally, certain oilsands extraction projects and fossil fuel-fired power generation initiatives will be removed from the roster of projects subject to IAAC review.
Heather Exner-Pirot, Director of Energy, Natural Resources, and Environment at the Macdonald-Laurier Institute, highlighted that these changes will tangibly attract investments to Canada by reducing regulatory expenses.
Environmental group criticizes as a ‘wrecking ball’ to regulations
These adjustments follow Prime Minister Mark Carney’s pledge to simplify regulatory approvals for major projects during the previous election. Shortly after the 2025 election, the Liberals, with Conservative support, passed Bill C-5. This legislation enables the expedited processing of major projects deemed to be in the national interest, impacting reviews for other significant projects lacking that designation.
The government concluded consultations on the proposed reforms in July. The report on these consultations was made public on the same day the regulatory revisions were announced.
Julia Levin from the Environmental Defence advocacy group criticized the decision, stating, “Prime Minister Carney has once again taken a wrecking ball to Canada’s environmental safeguards and climate progress.”
Despite the criticism, Exner-Pirot emphasized that an environmental assessment will still occur, albeit overseen by one regulator instead of two. She also noted that this regulatory change coincides with an upcoming “investors summit” hosted by Carney.
“This demonstrates the Carney government’s commitment to welcoming capital investment in Canada,” she remarked.
