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By Perrin Beatty, Thomas d’Aquino, Heather Exner-Pirot, Fen Osler Hampson, Lawrence Herman and Tim Sargent

July 21, 2025

Canada is at a pivotal moment in its energy transition, with hundreds of major projects — spanning LNG, hydrogen, wind, nuclear, hydro, pipelines, and Indigenous-led infrastructure — representing over $600 billion in actual and potential investment.

According to the Government of Canada’s Canadian Centre for Energy Information, “In 2023, there were 223 planned (announced, under review, or approved) major energy projects worth $294 billion, and 120 energy projects under construction worth $180 billion. There were 233 cleaner technology projects valued at $159 billion.” These projects offer the potential to generate nearly 50,000 direct jobs, increase GDP by at least $11 billion per year from LNG alone, and deliver substantial tax revenues and export growth.

At a time when Canada faces persistent economic headwinds — ranging from punitive tariffs from the United States to sluggish GDP growth and mounting global competition — Bill C-5, which received Royal Assent on June 26, represents a bold and necessary step to secure the nation’s economic future and reduce our economic dependence on the United States.

Now the One Canadian Economy Act, and comprised of the Free Trade and Labour Mobility in Canada Act and the Building Canada Act, the legislation grants Ottawa new authority to fast-track “nation-building” projects deemed in the national interest. Once designated, these projects will benefit from a single, streamlined federal approval process, coordinated by a new Major Projects Office, which aims to reduce timelines from five years to two years.

The government’s commitment to “build big, build bold, and build now” sends a powerful signal to investors, workers, and trading partners that Canada is ready to deliver on major projects and unlock its vast economic potential.

As the Prime Minister and the premiers meet in Huntsville this week to discuss how to deal with Donald Trump’s tariffs and prioritize Canada’s infrastructure projects, energy should be high on the list. Canada’s energy sector, which is a major source of our competitive strength, can help meet the urgent global need for energy produced in stable democracies with high environmental and human rights standards.

The government’s commitment to ‘build big, build bold, and build now’ sends a powerful signal to investors, workers, and trading partners that Canada is ready to deliver on major projects and unlock its vast economic potential.

However, these ambitions can only be realized by addressing significant internal challenges. The compressed timelines for project approvals under the One Canadian Economy Act raise concerns about the depth and quality of Indigenous consultation, legal risk, and environmental integrity. Insufficient engagement or rushed reviews can result in legal challenges, costly delays, and reputational harm, as seen in recent major projects.

As the federal government has acknowledged, meaningful Indigenous engagement is both a legal obligation and a practical necessity for the success of major energy projects in Canada. This “duty to consult” derives from both Section 35 of the Canadian Constitution and the United Nations Declaration on the Rights of Indigenous Peoples Act (UNDRIP), which was enacted by Parliament in 2021.

A prudent financial risk and management approach is also critical to the success of Canada’s energy megaprojects under the new Act. Projects with higher technical, regulatory, or market risks — such as first-of-their-kind hydrogen hubs or large-scale Arctic LNG terminals—will require much greater government involvement in the form of financial guarantees, loan backstops, or targeted subsidies to attract private capital and mitigate investor uncertainty.

This strategy minimizes the fiscal burden on federal and provincial governments, maximizes early wins, and allows scarce public resources to be reserved for de-risking only the most challenging but strategically important projects. By aligning the level of government support with the degree of project risk and private sector commitment, Canada can accelerate its energy transition efficiently and responsibly.

To build momentum and validate the government’s ambitious “nation-building” goals, Canada must move quickly on projects that are essentially expansions of existing, successful infrastructure projects with established supply chains, stakeholder relationships, and regulatory groundwork. Success with these projects — and others where a strong business case already exists — will demonstrate the Building Canada Act‘s effectiveness, reduce approval timelines, and create political capital for more complex projects. They will also set a compelling precedent for federal, provincial, and Indigenous cooperation on future projects.

Projects that already have strong private-sector financial backing, established commercial models, and proven technology, which offer high value for energy development and export, should be prioritized for early approval and implementation. For example, some of the best potential prospects are LNG Canada Phase 2 and Ksi Lisims LNG, which would be supplied by the Prince Rupert Gas Transmission (PRGT) pipeline. There is also the option to increase capacity on the existing Trans Mountain Pipeline by 200,000 to 300,000 barrels per day through operational enhancements, such as the use of drag-reducing agents and increased pumping capacity.

It is with these goals in mind — reducing external dependence, addressing internal challenges, and strategically leveraging Canada’s key economic sectors — that the Government of Canada must seize this moment to drive diversification, unlock investment, and secure a resilient, cleaner energy future for all Canadians.

Hon. Perrin Beatty, PC, OC, is the former President and CEO of the Canadian Chamber of Commerce and Co-Chair of the Expert Group on Canada-US Relations.

Thomas d’Aquino is the founding CEO of the Business Council of Canada and Chair of Thomas d’Aquino Capital. He is also the Chair Emeritus of the North American Forum.

Heather Exner-Pirot is a Senior Fellow and Director of Energy, Natural Resources and Environment at the Macdonald-Laurier Institute in Ottawa, Special Advisor to the Business Council of Canada, and Research Advisor to the Indigenous Resource Network.

Fen Osler Hampson, FRSC, is the Chancellor’s Professor and Professor of International Affairs at Carleton University, and President of the World Refugee & Migration Council. He is Co-Chair of the Expert Group on Canada-US Relations.

Lawrence Herman is an international lawyer with Herman & Associates, a senior fellow at the C.D. Howe Institute in Toronto and former Chair of the Canadian International Tribunal’s Advisory Committee.

Tim Sargent is Director of Domestic Policy and Senior Fellow at the Macdonald-Laurier Institute in Ottawa. He was Deputy Minister of Trade during the renegotiation of NAFTA during the first Trump administration.

The work of the Expert Group on Canada-US Relations is supported by: The Norman Paterson School of International Affairs, Carleton University; The School of Public Policy at the University of Clagary; and the Canadian Global Affairs Institute. It is featured in our Policy Series: The Expert Group on Canada-US Relations on Navigating Trump II.