The federal government has tabled a revised environmental assessment law in Parliament, following a recent Supreme Court decision that struck down key portions of the original law.
In a landmark ruling, Canada’s Supreme Court found large parts of the former Impact Assessment Act (IAA) to be unconstitutional. The court concluded that Ottawa had overreached its powers by assessing projects beyond its federal jurisdiction.
In response, Canada’s government is pushing a new bill that retains only constitutionally defensible elements while reconnecting assessment powers to its limited areas of authority.
Key Changes in Proposed Law
The reworked law scales back federal reach in some areas but preserves authority over projects located on federal lands, cross-border infrastructure, or with international implications.
The government proposes clearer criteria for which projects require federal review, thereby aligning the law with the court’s constitutional limits.
Additionally, the new law includes streamlined review timelines, and more robust Indigenous consultation requirements to ensure more thorough reviews without stifling investment.
Political and Industry Response
Environmental groups have cautiously welcomed parts of the proposed update, but many argue it does not go far enough.
Some NGOs say that despite constitutional constraints, Canada still needs a strong federal impact-assessment system to address climate risk and biodiversity loss.
Meanwhile, industry bodies—especially in mining and energy infrastructure—have praised the revisions, arguing the changes deliver greater regulatory certainty and reduce delays.
What’s Next in Parliament
The government aims to introduce the bill formally in the next legislative session. Following its introduction, the draft law will undergo committee review where MPs will debate its details, suggest amendments, and hear from stakeholders.
Observers expect tough negotiations, especially around the balance between Indigenous rights, environmental protection, and economic development.
