Quebec, Ottawa Sign 'One Project' Deal to Cut Green Tape

Supreme Court Ruling Clears Path for Provincial Lead

The deal is the direct result of a major constitutional shake-up that redefined federal environmental authority.

In October 2023, the Supreme Court of Canada ruled that the Impact Assessment Act was unconstitutional in its application to projects strictly within provincial bounds.

That decision was a victory for provinces like Quebec and Alberta, which had argued Ottawa was overstepping its authority and interfering in resource development.

For two years, officials have worked to realign the federal legislation to respect the court's findings while preserving Ottawa's ability to assess environmental risks.

'This agreement brings certainty to the process,' said a Quebec government representative familiar with the negotiations.

'Investors have been walking away because they couldn't navigate two different sets of rules for the same project.'

The new framework relies heavily on the concept of substitution, where the federal government accepts the provincial assessment as its own.

This mechanism has existed in theory but rarely used effectively until now.

The federal government will still conduct a sanity check to ensure the review aligns with national climate change commitments and Indigenous treaty obligations.

However, the day-to-day grunt work of studying impacts on caribou, wetlands, and air quality will rest squarely with Quebec's Bureau d'audiences publiques sur l'environnement (BAPE).

Analysts noted this move aligns with a global trend of governments trying to accelerate infrastructure deployment to meet climate targets.

• The 2023 Supreme Court ruling was a 5-2 majority decision.
• The Impact Assessment Act was originally passed in 2019.
• Quebec was the first province to legally challenge the federal legislation.

Nova Scotia Mine Restart Shows Provincial Speed

While the Quebec-Ottawa deal is national news, the benefits of streamlined provincial reviews are already visible in Atlantic Canada.

On Monday, EDM Resources received an amended industrial approval from the Nova Scotia Department of Environment and Climate Change to restart its Scotia Mine.

The approval came after an extensive technical review by provincial regulators, a process that highlights the efficiency Quebec hopes to emulate.

The Scotia Mine restart is expected to create approximately 150 jobs in the region, injecting vital economic activity into the local economy.

According to project documents, the restart supports a modernized operation incorporating updated processing infrastructure and environmental management systems.

'The company appreciates the professionalism and constructive engagement of the Nova Scotia Department of Environment and Climate Change throughout the review process,' EDM Resources stated in a release.

This kind of swift turnaround is exactly what industry advocates have been demanding.

Under the old dual-review system, a project like Scotia Mine might have required a separate federal assessment if specific triggers, such as greenhouse gas emissions or federal funding, were met.

Instead, the provincial review handled the engineering, environmental, and permitting work over the past two years without federal duplication.

The success in Nova Scotia serves as a concrete example for Quebec officials.

It demonstrates that provincial regulators are capable of handling complex technical reviews without constant federal supervision.

• The Scotia Mine restart aims to modernize processing infrastructure.
• The project secured approval after a two-year permitting process.
• 150 new jobs are expected to be created in the region.

KSM Project Proves Approvals Don't Guarantee Construction

However, streamlining assessments does not guarantee that projects will be built, as evidenced by developments in British Columbia.

Seabridge Gold announced on Tuesday that it has secured a $142.9 million loan for its massive KSM Project, one of the largest undeveloped gold deposits in the world.

Despite holding both provincial and federal environmental approvals, the project has faced a timeline stalled by legal challenges and fierce opposition from Indigenous communities.

The KSM project illustrates the limits of regulatory efficiency.

A 2022 Prefeasibility Study outlined a 33-year mine life capable of producing about 1 million ounces of gold, 178 million pounds of copper, and 3 million ounces of silver annually.

On paper, the economics are staggering.

On the ground, the reality is messy.

'Legal challenges and opposition from Indigenous communities continue to leave the development timeline uncertain,' industry analysts pointed out.

Even with a 'one project, one review' system, the duty to consult Indigenous groups remains a distinct federal responsibility that cannot be delegated to the provinces.

The Seabridge experience serves as a cautionary tale for Quebec.

While the new agreement may speed up the paperwork, it does not necessarily solve the deeper social conflicts that often surround resource extraction.

Investors are watching closely to see if the federal government's involvement in Indigenous consultations will also be streamlined, or if this will become the new bottleneck.

• The KSM project has a projected 33-year mine life.
• Seabridge Gold secured a $142.9 million loan on July 21, 2026.
• The project plans to produce 1 million ounces of gold annually.

Indigenous Rights Remain the Final Hurdle

The most delicate part of the new agreement involves Section 35 of the Constitution Act, which protects Indigenous and treaty rights.

While provinces can assess the biophysical environmental impacts of a mine or dam, they cannot constitutionally discharge the federal Crown's duty to consult Indigenous nations.

Under the new framework, Ottawa will lean heavily on provincial assessments but must still conduct its own separate consultations with First Nations, Inuit, and Métis communities.

This dual track could still create friction.

Indigenous leaders have frequently argued that provincial regulators are too close to industry and do not adequately protect traditional territories.

'Streamlining the process for the province does not mean streamlining our rights,' said an advisor for a First Nations coalition in Quebec.

The agreement attempts to address this by creating a coordination table where federal and provincial officials can share information regarding Indigenous consultations.

The goal is to ensure that Indigenous groups are not forced to repeat the same meetings and submit the same studies to two different governments.

However, the final decision on whether the Crown has adequately fulfilled its duty remains with the federal government.

Legal experts suggest that without genuine partnership, this streamlined process could actually lead to *more* lawsuits, not fewer.

If Indigenous groups feel their concerns were glossed over in a rushed provincial review, they may seek redress in the courts.

• Section 35 of the Constitution Act protects Aboriginal rights.
• The federal Crown retains the ultimate duty to consult.
• A new coordination table will share information on Indigenous consultations.

Critical Minerals Race Drives Regulatory Shift

The urgency behind this agreement is driven by the global race for critical minerals.

Quebec is positioned as a key player in the North American supply chain for lithium, graphite, and nickel—essential components for electric vehicle batteries.

With the United States and Canada pushing to reduce reliance on Chinese supply chains, the pressure to open new mines has never been higher.

The 'one project, one review' pact is viewed as a essential tool to unlock billions of dollars in investment capital.

Mining companies have long complained that Canada's regulatory regime is too slow compared to jurisdictions like Australia.

The Seabridge Gold situation, where a company holds approvals but struggles with social license, highlights the risk.

But the EDM Resources restart in Nova Scotia shows the potential reward.

Quebec officials are betting that by speeding up the technical review, they can attract the kind of investment that leads to modernized operations like the one planned for Scotia Mine.

'We need to move at the speed of business, not the speed of bureaucracy,' said a representative from the Mining Association of Canada.

The agreement is also expected to apply to green energy projects,