Last spring, the federal government announced a new “Canada First” infrastructure initiative with the promise of streamlining approvals for major projects. Eight months later, the results are starting to materialize across the country’s economic landscape.
The program, which aims to cut approval times by up to 50%, has already green-lit seven major projects worth a combined $22 billion. This marks a significant departure from Canada’s historically sluggish approach to infrastructure development, which has often left investors frustrated and capital flowing to more nimble jurisdictions.
“We’re seeing real momentum now,” says Marta Cabrera, infrastructure analyst at RBC Capital Markets. “Projects that would typically face years of regulatory hurdles are moving forward in months rather than decades.”
Among the fast-tracked projects is the $8.9 billion expansion of the Trans Mountain Pipeline, which received final environmental approvals in September—nearly three years ahead of the original timeline. Similarly, the Lake Erie Connector, a 117-kilometer underwater transmission line connecting Ontario’s electricity grid to markets in the United States, secured permits in record time.
The acceleration comes as Canada faces mounting pressure to address its infrastructure deficit, estimated at over $570 billion by the Canadian Construction Association. This gap has become particularly problematic as the country attempts to position itself as a reliable supplier of critical minerals and clean energy to allies seeking alternatives to Chinese supply chains.
Finance Minister Chrystia Freeland pointed to these projects as evidence that Canada can simultaneously maintain environmental standards while speeding up economic development. “The old false choice between rigorous environmental protection and economic growth is exactly that—a false choice,” Freeland told reporters during a site visit to the Port of Vancouver’s expansion project last month.
Behind the scenes, however, the fast-tracking initiative has required significant structural changes to how projects are evaluated. The Impact Assessment Agency of Canada has doubled its staff dedicated to major project reviews and implemented concurrent rather than sequential assessment processes.
Indigenous communities have seen mixed outcomes from the accelerated timeline. Some First Nations, like the Squamish Nation in British Columbia, have successfully negotiated equity positions in fast-tracked projects. The Nation secured a 5% ownership stake in the $7.4 billion Woodfibre LNG facility, which received expedited approval in August.
“When we have a seat at the table from day one, and genuine economic participation, the process can move much faster,” explains Chief Harley Chappell of the Semiahmoo First Nation, who serves on the government’s Infrastructure Advisory Council.
Other Indigenous groups, however, have expressed concern that shortened timelines could undermine meaningful consultation. The Assembly of First Nations has called for guarantees that acceleration won’t come at the expense of treaty rights or environmental protection.
Economic impacts from the expedited projects are already becoming visible in job markets. The Construction Sector Council reports that fast-tracked projects have created approximately 12,600 direct construction jobs since April, with an additional 38,000 expected by late 2024.
For comparison, similar infrastructure initiatives in Australia generated economic returns estimated at 2.5-4 times the initial investment, according to research from Deloitte Access Economics. Canadian economists project similar multiplier effects, particularly in regions with high unemployment.
Private investors have responded positively. Pension funds like the Caisse de dépôt et placement du Québec have increased their allocation to Canadian infrastructure by 15% this year, citing improved regulatory certainty. Foreign direct investment in infrastructure projects rose to $14.3 billion in the second quarter of 2023, up from $8.7 billion for the same period last year, according to Statistics Canada.
“We’re seeing serious institutional capital return to Canadian projects,” notes Darryl White, CEO of BMO Financial Group. “The signal this sends is that Canada is open for business in a way it hasn’t been for years.”
Critics, however, point to potential environmental trade-offs. A coalition of environmental groups has filed judicial reviews of three fast-tracked projects, arguing that shortened timelines have resulted in less rigorous environmental assessments.
“Speed shouldn’t come at the expense of due diligence,” says Julia Levin, program manager at Environmental Defence. “Some of these projects will lock in carbon emissions for decades, and deserve careful scrutiny.”
The economic case for acceleration appears compelling. The C.D. Howe Institute estimates that delays in major project approvals cost Canada approximately $11.8 billion annually in lost economic activity. The fast-track program aims to recover at least 40% of these losses by 2025.
Infrastructure Minister Sean Fraser acknowledges the balancing act. “We’re not cutting corners on standards,” he insists. “We’re cutting red tape and duplication. There’s a critical difference.”
As the program enters its second year, the government plans to expand its scope to include critical mineral mines, battery manufacturing facilities, and hydrogen production plants—all key components of Canada’s clean energy transition strategy.
For communities hosting these projects, the impacts extend beyond job creation. In Kitimat, B.C., where the Cedar LNG facility received accelerated approval, housing starts have increased by 67% year-over-year, and local businesses report revenue increases averaging 22%.
While it’s too early to declare the initiative an unqualified success, the early indicators suggest Canada may finally be addressing its infrastructure implementation gap—a crucial step if the country hopes to remain competitive in an increasingly complex global economy.
