Canada and Ontario sign a new agreement to accelerate the construction of major projects in Ontario

OTTAWA, ON, Dec. 18, 2025 /CNW/ - The world is changing rapidly. The United States, the world's largest economy, is fundamentally reshaping all its trade relationships, causing major disruption and upheaval for Canadians. Canada is transforming its economy from one that is reliant on a single trade partner to one that is stronger and more resilient to global shocks. Canada's new government is working with provinces and territories to build major infrastructure projects that will diversify our exports, make Canada an energy superpower, and build a stronger, more sustainable, more independent economy. 

Today, the Prime Minister, Mark Carney, and the Premier of Ontario, Doug Ford, announced the new Co-operation Agreement between Ontario and Canada on Environmental and Impact Assessment.

This agreement will bring a "one project, one review" approach to major infrastructure initiatives in Ontario. Canada and Ontario will implement a streamlined and flexible assessment process that minimises duplication and delivers major projects faster while reinforcing strong environmental protections. This ensures both governments can adopt the most effective assessment process on a case-by-case basis – either by relying on Ontario's process or by implementing a coordinated federal-provincial approach.

The agreement ensures that the Impact Assessment Agency of Canada can provide Ontario with federal expertise and support in areas such as environmental protection, Indigenous engagement, and sustainable project development. This will ensure federal and provincial responsibilities to the environment and the protection of Indigenous Peoples' rights are upheld.

Facing profound global uncertainty, Canada's new government is focused on what we can control: diversifying our partners abroad and building our strength at home. We are building in partnership with provinces and territories through the Major Projects Office and agreements that create the conditions to build major infrastructure faster, including those signed with Alberta and New Brunswick. Today's agreement with Ontario will accelerate the construction of major projects – attracting more investment in new infrastructure that will grow the economy, support workers and their families, and create high-paying careers.  

Quotes

"Canada's new government is focused on what we can control – building a stronger, more sustainable, more independent Canadian economy. Our agreement with Ontario will build major projects faster, helping to diversify our trade partners, strengthen our industries, and empower more Canadians with high-paying careers. We are building Canada Strong, and we're building bigger and faster together."
-- The Rt. Hon. Mark Carney, Prime Minister of Canada

"With this historic agreement, our two governments are working together to protect Ontario and Canada by removing the unnecessary red tape and regulatory duplication that has stood in the way of nation-building projects for too long. I want to thank Prime Minister Carney for his leadership in speeding up major projects that will create good-paying jobs, build a more competitive and self-reliant economy, and help us unlock the enormous economic opportunity of the Ring of Fire."
-- The Hon. Doug Ford, Premier of Ontario

"By adopting a 'one project, one review' approach in Ontario, we are simplifying major project assessments, catalysing new investment, development, and good-paying careers. Together, we are building not just a stronger Ontario, but a stronger, more resilient Canada."
-- The Hon. Dominic LeBlanc, President of the King's Privy Council for Canada and Minister responsible for Canada-U.S. Trade, Intergovernmental Affairs, Internal Trade and One Canadian Economy

"I am confident this agreement will ensure that environmental protection and Indigenous rights continue to be upheld, while reducing duplication during the assessment of major projects in Ontario."
-- The Hon. Julie Dabrusin, Minister of the Environment, Climate Change and Nature

"Now more than ever, we need to speed up project timelines and provide greater certainty to businesses and communities looking to build and invest. Together with the federal government, we're taking decisive steps to build a stronger, more competitive and prosperous economy that creates jobs and prosperity for the people of Ontario, while maintaining environmental protections."
-- The Hon. Todd McCarthy, Ontario's Minister of the Environment, Conservation and Parks

Quick facts

• Today's agreement between Canada and Ontario is the third of its kind, following one with New Brunswick earlier this week and a previously established agreement on impact assessments with British Columbia in 2019. Agreements with Manitoba and Prince Edward Island have completed consultation and are being finalised. Alberta and Canada are working to sign a co-operation agreement by April 1, 2026.
• Last month, Prime Minister Carney announced the second tranche of projects referred to the Major Projects Office (MPO) to drive tens of billions of dollars in further investments, while creating the conditions for a better connected, more productive, and ambitious country.
• Together, the first and second tranches of MPO projects represent a combined potential investment of more than $116 billion in our economy and will create thousands of well-paying careers for Canadians.
• The MPO was created under the One Canadian Economy's Building Canada Act, which came into force on June 26, 2025.
• The MPO is providing $40 million over two years to increase the capacity of Indigenous Peoples to engage early and consistently on major projects.
• The federal government has also expanded the Indigenous Loan Guarantee Program from $5 billion to $10 billion, to help create long-term economic opportunities and build lasting prosperity for Indigenous Peoples across Canada.
• A recent Statistics Canada study confirmed that regulatory requirements in Canada increased by 2.1% per year from 2006 to 2021 (37% total). This has lowered business sector investment growth by 9%.

Related product

• Co-operation Agreement between Ontario and Canada on Environmental and Impact Assessment

Associated links

• Basics of co-operation in federal impact assessments
• Impact assessment process
• Impact Assessment Agency of Canada

This document is also available at https://pm.gc.ca

SOURCE Prime Minister's Office

PMO Media Relations: [email protected]