Carney Fast-Tracks Industrial Agenda as U.S. Tariffs Reshape Canadian Policy
Prime Minister Mark Carney is leveraging U.S. tariffs to accelerate infrastructure and energy approvals through Bill C-39, aiming to cut federal project decision timelines to one year and diversify trade away from the United States.
U.S. President Donald Trump’s ongoing tariff campaign against Canada has provided Prime Minister Mark Carney with political cover to fast-track an industrial agenda focused on clearing obstacles to investment. Central to this effort is Bill C-39, known as the Building Canada Strong Act, which proposes sweeping changes to how major projects are reviewed and approved across the country.
Under the proposed legislation, the timeline for federal decisions on all projects would be cut to one year. Government departments would be required to conduct concurrent rather than sequential assessments, ensuring each project faces only one review. The bill also grants ministers discretion to pre-approve projects in areas designated as regions of national interest, subject to specific conditions and mitigation measures.
A key target of this accelerated approach is the Pacific Link oil pipeline to the West Coast. Last week, the pipeline was designated a project of national interest, effectively deeming it pre-approved subject to conditions. For pipelines adding more than 300 kilometres of new route, the Canada Energy Regulator must submit a report to cabinet within six months of receiving the application.
The push to expedite construction comes as Canada seeks to diversify its trade relationships. Last year, the United States was the destination for 85 per cent of Canadian energy exports. Business leaders have expressed strong support for faster project approvals, and a poll by Abacus Data and Vantage found that two-thirds of Canadians want major projects built faster.
However, the legislation has drawn sharp criticism from environmental advocates and legal experts who argue the reforms degrade protections and politicize the approval process by keeping final decisions with the cabinet. David Wright of the University of Calgary argues the new legislation represents significant steps backwards for environmental protection.
Concerns have also been raised regarding Indigenous relations. George Vegh, former board chair of the Canada Energy Regulator, stated that effective review of proposals cannot be completed within six months due to the time required for Indigenous consultations. While the government has proposed extending reviews if necessary for these consultations, critics warn that shortened timelines risk straining relations with Indigenous communities.