UPDATE: Shortly following the release of our statement below, the federal government put out a press release outlining the changes to the Impact Assessment Act.

Statement from Julia Levin, Associate Director, National Climate, in response to amendments to the Impact Assessment Act

Ottawa | Traditional, unceded territory of the Algonquin Anishinaabeg People – This morning, Prime Minister Carney has once again taken a wrecking ball to Canada’s environmental safeguards and climate progress. Many of his moves since coming to power have been done quietly, to avoid the public backlash that these environmental rollbacks rightfully deserve. Such is the case with the amendments tabled this morning in stealth.

This latest attack on Canada’s hard-fought environmental rules came in the form of a quiet posting in the Canada Gazette which announced that some of the country’s most polluting projects will no longer be reviewed under the country’s Impact Assessment Act. This includes the country’s largest carbon bombs: oil and gas pipelines (including in national parks), in situ oil sands extraction and fossil gas plants.

There was no forewarning of this decision. No press release. No press conference.

PM Carney’s vision threatens Canada’s environment, waters, and rarest and most vulnerable species. If the Prime Minister proceeds, nature will suffer, species could be driven to extinction and climate disasters will continue to become more severe, deadly and expensive — all while project decision-making becomes less transparent, less evidence-based and more politicized.

BACKGROUND

About the changes:

• The Physical Activities Regulations (Project List) sets out what projects are subject to the federal Impact Assessment Act (IAA)
• The government introduced amendments to the Project List to remove projects that are currently subject to both the IAA and the Canadian Energy Regulator Act (CERA).
• The Canada Energy Regulator (CER) does not have the same mandate or depth of expertise of environmental issues or laws (such as protecting species at risk, fish habitat protection, and other environmental and social considerations.) That creates a meaningful risk of decisions that do not adequately account for wildlife, critical habitat, and broader biodiversity values. IAAC is the only agency with this expertise that can credibly be responsible for project reviews.
• Furthermore, the CER is a politically appointed body.
• Overall, the changes make project decision making less transparent and more political – and therefore more vulnerable to legal risk and public opposition.

About the Project List

• The IAA was amended in 2024 to respond to the decision from the Supreme Court of Canada on October 13, 2023, which found that parts of the IAA went beyond federal jurisdiction under the Constitution. But the government went far beyond the minor changes required by the court. The government removed greenhouse gas emissions as effects under the federal government’s jurisdiction.
• The Project List was reviewed in 2024, including to ensure that it aligns with these features of the amended Act. Environmental Defence’s submission called for stronger climate action by ensuring high-carbon projects like in situ oil sands extraction and fossil fuel power plants are left in the regulations.

General context

• This announcement comes days after PM Carney tried to bury his government’s own climate report last week. Canada’s latest state of the climate report is a stark warning of what Canadians will face if governments fail to tackle the climate crisis with the urgency it requires, which requires transitioning away from producing and burning oil, gas and coal. Yet instead of regulating pollution, PM Carney is giving a free pass to polluters.
• In May, Prime Minister Carney’s government published a discussion paper that seeks to give Cabinet sweeping powers on industrial projects, effectively gutting environmental and public oversight. Experts warned that if implemented, it would represent the worst evisceration of environmental law in Canadian history. 22,000 Canadians submitted responses to the consultations, mostly to oppose the proposed changes.
• Legislation is expected this fall to implement further elements of the Major Projects discussion paper. Environmental Defence’s submission in response to the discussion paper is available here.
• Some of Canada’s leading environmental advocacy groups, including Environmental Defence, West Coast Environmental Law, Equiterre, Nature Canada and Stand.earth, launched a joint campaign to raise awareness of the threats posed to iconic wildlife, nature and public health and safety.

ABOUT ENVIRONMENTAL DEFENCE (environmentaldefence.ca): Environmental Defence is a leading Canadian environmental advocacy organization that works with government, industry and individuals to defend clean water, a safe climate and healthy communities.

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For more information or to request an interview, please contact:

Lauren Thomas, Environmental Defence, media@environmentaldefence.ca