IYR Explains - Bill C-5

CENTRE FOR INDIGENOUS POLICY AND RESEARCH April 2026

iyr explains :

One Canadian Economy Act (Bill C-5)

A Att AA Glance Glance In June 2025, the federal government passed Bill C-5, the One Canadian Economy Act, giving Cabinet new powers to fast-track major infrastructure projects (e.g., pipelines, mining, or energy developments) by designating them

When we talk about infrastructure, we mean things like roads, pipelines, homes, clean water, internet, and energy systems.

as being “in the national interest.”

These projects require large financial investments and are constructed on Indigenous lands, impacting land rights.

While the government has framed this as an economic growth measure, the law has drawn criticism from Indigenous governments and environmental organizations.

Critics warn it could undermine treaty rights, Indigenous sovereignty, and environmental protections by centralizing decision-making with the federal government.

The bill was fast-tracked through Parliament and the Senate with minimal debate, after the government shortened discussion time and replaced the usual Senate committee review with a single brief session to push it through before the summer recess.

While the government says that Indigenous consultation will continue and that treaties will be respected, many Indigenous governments and organizations remain deeply skeptical.

Large infrastructure projects also bring concerns about meaningful consultation and about how profits from these projects will be equitably distributed to Indigenous communities.

What is What is Bill Bill C-5?

C-5?

The One Canadian Economy Act (or Bill C-5 before it became law) is a federal law that bundles two separate Acts under one umbrella: Part 1: The Free Trade and Labour Mobility in Canada Act Part 2: The Building Canada Act The reason it is written as two “Acts” under one bill is that each piece has its own policy purpose under the common theme of building “one Canadian economy.” One part focuses on removing country-wide trade and labour barriers, and the other on fast-tracking major infrastructure projects.

The Act was introduced by Intergovernmental Affairs Minister Dominic LeBlanc on June 6, 2025, and received Royal Assent just 20 days later, on June 26.

According to the federal government, the purpose of the bill is to create more jobs and economic activity in response to trade pressures (i.e., US tariff policies) by reducing approval processes that can delay projects from starting.

This law also gives this new framework priority over any conflicting federal laws, meaning its rules on trade, labour, or project approvals can override older federal statutes when they clash.

The Free Trade and Labour Mobility in Canada Act: The stated aim of this part of the Act is to make it easier for people, jobs, goods, and services to move and work freely across Canada, while still respecting provincial and territorial rules.

This part of the Act says that if a good or service meets the regulatory requirements of one province or territory, it should be able to be traded across Canada without any additional checks.

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This part of the Act does not explicitly address Indigenous territorial borders or Indigenous governments. Rules related to Indigenous consultation, participation, and rights recognition appear in Part 2 of the Act, particularly for projects listed as being “in the national interest.” More details are shared below in the “Indigenous Participation and Consultation” section.

This part of the law requires a review within 5 years, so Parliament can study how well the free-trade and labour-mobility system is working.

The Building Canada Act: This Act grants the federal government broader powers to designate “national interest projects” for infrastructure such as pipelines, highways, or railways and accelerate their approval process.

To trigger this process, the Minister can provide one combined “conditions” document as approval (as opposed to making the project get several separate federal permits to commence).

If the federal cabinet labels a project as “in the national interest,” the government can treat many of the usual federal approvals as already checked off, so the project can move ahead faster.

The conditions document lists all the rules and requirements a project has to follow to move forward. It combines several federal approvals (e.g., environmental, safety, and consultation) into a single document, so the project doesn't need to apply for separate approvals.

Before the conditions document is finalized, the Minister must publish the proposed conditions, all studies and impact assessments, departmental recommendations, and the reasons for rejecting any recommendations at least 30 days in advance.

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In practice, this means that typical regulatory processes can be fast-tracked or skipped (e.g., environmental review) because some of those decisions are treated as already made in favour of the project by the Minister.

While the Act does not explicitly mention Free, Prior, and Informed Consent (FPIC), it does require consultation with potentially affected Indigenous communities. Compared to the current regulatory process, the Act speeds up approvals by treating some decisions as already made and rolling them into one federal approval, which may reduce the number of formal steps where Indigenous communities would normally be involved, even though consultation is still required. More detail is provided in the “Indigenous Participation and Consultation” section below.

Implementation Plan for the Act: Cabinet will name a Minister to oversee the duties outlined in the law, and the Minister will then appoint a Major Projects Office (MPO).

Cabinet can list a project as a “national interest project” after public notice (30 days) and consulting provinces and territories. In addition, a public online registry publishes the project's details.

If a project falls in an area that a provincial or territorial government has exclusive rights over, the federal government must obtain written consent from that government before listing it as a national interest project.

Instead of multiple federal permits, the Minister issues one public conditions document that bundles them altogether to explain why the project was approved.

However, at least 30 days before the conditions document is issued, the government must publish all conditions, studies, recommendations, reasons for any not accepted, risks and alternatives, and what the normal process would have been.

The Major Projects Office (MPO) is a new federal body that coordinates large national projects across departments, working with provinces, Indigenous partners, and industry to facilitate approvals and keep projects on track

After approval, conditions can be changed (with required consultations) The authorization is valid for 5 years if the project is delayed starting.

The public registry for national interest projects must include a description of the project, why it is considered in the national interest, expected outcomes, cost estimates, and timelines.

Oversight and Review: In terms of oversight, each year there will be an independent progress review tabled in Parliament and posted online.

A parliamentary review committee will also study how powers are being used.

The Parliamentary Review Committee must report at least every 180 days while Parliament is sitting, and the Minister must also complete a full review of how well the Act is working within five years.

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Indigenous Participation and Consultation: An Indigenous Advisory Council with First Nations, Inuit, and Métis representatives will advise the Minister and Major Project Office on consultation, planning, and implementation.

The Council’s stated mandate is to advise the Minister on matters such as best practices for Indigenous consultations, engagement, and partnership in projects of national interest.

The Minister must consult Indigenous communities whose section 35 rights may be affected and set up a process that allows for “active and meaningful participation.” $40 million in new funding through the Canada Development Investment Corporation (CDEV) will support Indigenous capacity for participation, including technical expertise, governance, and engagement.

As part of the Building Canada Act, PM Carney announced that the Indigenous Loan Guarantee Program has been doubled to $10 billion to help Indigenous communities gain financial ownership and shares in projects.

Before issuing a conditions document for a national interest project, the Minister must consult with Indigenous communities whose section 35 rights may be adversely affected by the project.

Section 35 of the Constitution Act, 1982, recognizes and protects the inherent rights of Indigenous peoples in Canada. This includes treaty rights, Aboriginal title, and cultural practices, which cannot be taken away without serious justification. Governments have a legal duty to consult and accommodate when decisions they make may affect these rights.

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Related Appointments: Minister Dominic LeBlanc (Canada-U.S. Trade, Intergovernmental Affairs) was named Minister responsible for the Major Projects Office (MPO), which will oversee the implementation of Bill C-5.

Dawn Farrell was named CEO of the Major Projects Office. She is a senior energy-sector executive with 35 years of leadership experience.

PM Carney announced the appointment of 11 representatives for the Indigenous Advisory Council, including seven First Nations members, two Inuit members, and two Métis members who have each been appointed for a two-year term.

Indigenous Advisory Council Members: Kluane Adamek, Kluane First Nation, Yukon Chief Darcy Bear, Whitecap Dakota First Nation, Saskatchewan Vanessa Doig, Makivvik, Nunavik, Northern Québec JP Gladu, Bingwi Neyaashi Anishinaabek, Ontario Victoria LaBillois, Listuguj Mi’gmaq First Nation, Québec Grand Chief Trevor Mercredi, Beaver First Nation (Treaty 8), Alberta Chief Terry Paul, Membertou First Nation, Nova Scotia Lorne Pelletier, Manitoba Métis Federation, Manitoba Christy Sinclair, Nunavut Tunngavik Inc., Nunavut Crystal Smith, Haisla Nation, British Columbia Matt Vermette, Métis Nation-Saskatchewan, Saskatchewan

Learn more about the Indigenous Advisory Council members here!

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Indigenous Rights and the Act: The One Canadian Economy Act has sparked significant debate across the country, with many raising concerns that its new fast-track approval process for major projects could come at the expense of Indigenous consent, environmental safeguards, and transparent decision-making.

Many Indigenous governments and organizations argue that Bill C-5 has further shifted the balance of power away from meaningful partnership and toward federal control.

While the Act includes a requirement to consult Indigenous peoples, commenters say the ability to designate a project as “in the national interest” and deem approvals granted means decisions can be made before communities have been properly heard.

Many describe this type of consultation as being symbolic, and while boxes may be checked, this format does not meet the requirements of Free, Prior, and Informed Consent (FPIC), as recognized under UNDRIP and protected by Section 35 of the Constitution.

Moreover, while the government has committed to fulfilling UNDRIP through the United Nations Declaration Act (UNDA), the Act does not explicitly require Free, Prior, and Informed Consent.

Instead, it relies on consultation and participation requirements. The government considers this consistent with its UNDRIP obligations, but many Indigenous governments and organizations argue this falls short of the standard of consent envisioned under UNDRIP. Indigenous governments and organizations argue that the Act risks weakening treaty relationships by fast-tracking major projects before treaty obligations, agreements, or revenue-sharing arrangements are fully addressed.

Community Responses Community Responses Since the introduction and eventual passing of Bill C-5, First Nations, Métis, and Inuit leaders have consistently raised concerns about the legislation’s implications for sovereignty, land rights, consultation, and environmental protection.

In response, PM Carney held regional meetings with First Nations (July 17), Inuit (July 24) and Métis (August 2) leadership to engage in dialogue on how implementation of the new law would proceed.

In July, a coalition of nine First Nations in Ontario filed a constitutional challenge in Ontario’s Superior Court, arguing that Bill C-5 takes away their ability to make decisions that protect their lands and ways of life by giving the federal government the power to fast-track projects and potentially skip the normal steps that include Indigenous consultation and environmental review.

Reactions from First Nations Communities: Several First Nations leaders have publicly called on the government to reconsider or withdraw Bill C-5, arguing that the legislation was tabled without proper consultation and threatens to override Indigenous rights.

“Unfortunately, the government provided First Nations only seven days to respond to an outline of the Bill and did not provide the full text (a consultative draft) in advance… An enormous responsibility now rests on the shoulders of each Member of the House of Commons and the Senate to uphold the Honour of the Crown and to protect First Nations rights during their consideration of this Bill.”

-AFN National Chief Cindy Woodhouse Nepinak (via AFN)

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Following a meeting with Prime Minister Carney, several First Nations leaders walked out, expressing frustration with the lack of meaningful consultation.

Among them, Grand Chief Cody Diabo (Kahnawà:ke) said: “I don’t even know what this is, but this is not engagement. This is definitely not consultation.”

In Ontario, Chiefs of Ontario and the Anishinabek Nation were reportedly invited to testify before a parliamentary committee on Bill C‑5. They then had that invitation rescinded when the committee reduced its hearing time, which they described as undermining meaningful participation.

“When they’re given the upper hand, they know that they’re going to get their permit because that’s the legacy, that’s the system that’s in place right now. So, this doesn’t really mean anything right now until we get a legislation piece that says we will get free, prior and informed consent before any project is allowed.”

-Chief Craig Nootchtai, Atikameksheng Anishnawbek (via APTN)

Reactions from Métis Communities: The Manitoba Métis Federation (MMF) publicly boycotted meetings related to Bill C‑5, citing disagreement with the inclusion of the Métis Nation of Ontario (MNO) in a joint gathering and concerns about the MNO's legitimacy and representation.

“Our Nation will always support projects that deliver economic growth—so long as they are developed responsibly and in close partnership with our citizens.”

- President of the Métis Nation – Saskatchewan, Glen McCallum (via MN-S)

The Métis Nation of British Columbia declined the Prime Minister’s invitation to attend the Bill C-5 summit, calling the offer to participate only as an online observer “disappointing.”

“We urge the Government of Canada to work with us, now and throughout the life of this legislation, to ensure that Bill C-5 delivers prosperity without undermining the constitutional and legal foundation of Indigenous rights in this country.”

- Statement from the Métis Nation of Ontario

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Reactions from Inuit Communities: At Senate hearings, representatives from Inuit Tapiriit Kanatami (ITK) joined First Nations and Métis leaders to voice concerns about Bill C-5.

ITK President Natan Obed stated that Bill C5 was passed without ITK’s support, and that they are participating in discussions about how it will be implemented.

“We’ve had reassurances that the bill … will not interrupt the processes under our modern treaties and that there will be full partnership of Inuit within these processes.”

-ITK President, Natan Obed (via ITK)

“Inuit have been calling for these major projects for decades. The Board is excited to accelerate infrastructure in Nunavut to create jobs and businesses, and lower the cost of living for Inuit.”

-NTI President, Jeremy Tunraluk (via NTI)

Climate and Environmental Risks: Environmental groups warn Bill C‑5 will undermine foundational environmental safeguards by allowing projects designated “in the national interest” to proceed without completing a full federal impact assessment.

The Climate Action Network Canada states that it jeopardizes democratic processes, environmental protections, and Indigenous rights by decoupling project approval from impact assessments.

Ecojustice declared the law a “dangerous precedent,” saying it “runs roughshod over Indigenous rights” and “puts the environment at risk.”

Critics emphasize that Indigenous rights and environmental protection are inseparable, because harm to water, wildlife, and ecosystems directly threatens Indigenous ways of life.

Where Do Things Stand Now?: Bill C‑5 is now in force, with the Building Canada Act being its most controversial element.

The federal government was actively engaging with Indigenous governments over the summer to negotiate how consultation, partnership, and participation would unfold.

Legal challenges are underway, notably by First Nations in Ontario, over the constitutionality of Bill C-5 and its provincial counterparts. As of February 5, 2026, additional First Nations have joined a legal challenge against the Act, with a total of 14 First Nations now being involved in the legal challenge.

Projects designated under the law will be closely watched by those communities affected, with pressure for transparency and accountability.

In September 2025, Prime Minister Mark Carney announced the first set of projects, including LNG Canada Phase 2 in Kitimat, to be reviewed under the new system, marking the start of the MPO’s decision-making role.

The federal government has also identified a series of “transformative projects” that could move through the new accelerated process overseen by the MPO. This includes a proposed high-speed rail between Toronto and Quebec City, offshore wind development in Atlantic Canada, critical minerals projects, and Arctic infrastructure initiatives.

IYR’s Impressions: Bill C‑5 is more than just infrastructure policy, it is a law that shapes how power, rights, and relationships are negotiated in so-called Canada.

Indigenous youth will inherit the outcomes of these choices, and their voices must be front and center in shaping a future where their communities lead in decision-making.

IYR will continue to support Indigenous youth and advocate for them to lead in ensuring that future projects reflect their communities’ values and long-term visions.

We will continue to monitor the implementation of this law, the inclusion (or exclusion) of Indigenous voices, and the safeguarding of land rights and environmental health.

Sources & Sources & Further Further Reading Reading Indigenous-owned companies see both perks and pitfalls in Ottawa’s Bill C-5 (July 2025). The Globe and Mail.

‘Build, baby, build’: a guide to Canada’s Bill C-5 (July 2025). The Narwhal.

An Act to enact the Free Trade and Labour Mobility in Canada Act and the Building Canada Act (Bill C-5) (Assented 26 June 2025). LegisInfo.

Bill C-5 (One Canadian Economy Act) (June 2025). OpenParliament.ca.

Implementation of Bill C-5: One Canadian Economy (June 2025). Government of Canada.

Anti-democratic Bill C-5 Threatens Canadians’ Safety and Environment, Lawyers Say (June 2026). West Coast Environment Law Environmental and civil society groups react: Bill C-5 becomes law, setting a dangerous precedent. (June 2025). Ecojustice Meeting with Carney offered reassurances over major projects bill, says Inuit leader. (July 2025). ITK Media Carney’s ‘last-minute’ meeting with First Nations chiefs on Bill C-5 draws skepticism. (July 2025). The Globe and Mail 9 Ontario First Nations ask for injunction against Bill 5, say law represents 'clear and present danger' (July 2025). CBC News.

Wet’suwet’en and Gitxsan leaders in Gatineau to speak for their communities and lands at summit on C-5 legislation. (July 2025). PBI Canada.

Chiefs criticize Indigenous advisory council for Bill C-5 projects after meeting with Carney. (July 2025). The Globe and Mail.

‘Excess of 100 priority projects’: Sask. Premier Scott Moe behind federal bill to remove project hurdles. (June 2025). CTV News One Canadian Economy Bill – Third Reading – Debate (26 June 2025). Senate of Canada.

Senators quash amendment to add free, prior and informed consent to Bill C-5. (June 2025).

APTN News.

I was at the First Nations C-5 summit. Carney isn’t listening. (July 2025). The Narwhal.

Carney’s Bill C-5 will likely make things worse—not better. (June 2025). Fraser Institute.

Prime Minister Carney engages First Nations Rights Holders on the Building Canada Act. (July 2025). Office of the Prime Minister of Canada.

5 more First Nations join legal challenge against Bill 5 and C-5. (February 2026). CBC News.

For more information, to let us know your thoughts, or to suggest a topic for the IYR Explains series, please contact: Tija Hauta Research Manager, Centre for Indigenous Policy and Research tija@indigenousyouthroots.ca