Cabinet Directive on Regulatory and Permitting Efficiency for Clean Growth Projects

1. Introduction/Preamble

1. The climate and biodiversity crises are at the forefront of Canada’s efforts to drive clean growth. An urgent transformation is needed to reduce our emissions and advance conservation. At the same time, the transformation needs to reflect the importance of increasing investment, enhancing productivity and encouraging innovation that will drive GDP growth and improve the quality of life of Canadians.
2. The scale, scope and pace of change, including decarbonization efforts, is anticipated to be unprecedented. This will not be a circumstance of “business as usual”; in response, new and more coordinated ways of operating are required. Canada’s system of supports, including regulatory, financial, and decision-making frameworks are being aligned to increase certainty for investors and have the potential to create significant economic opportunities.
3. Countries around the world are investing in solutions to increase regulatory efficiency and get clean projects done faster. Canada’s world-class regulatory environment is well-placed to ensure projects are built responsibly, but action is needed to emphasize and improve efficiency to accelerate the pace of clean growth to enable domestic and global transitions to cleaner economies. 
4. Canada’s status as a federation, and the Government of Canada’s respect for the jurisdiction and role within the provinces, territories, and Indigenous governments require that clean growth opportunities be pursued in the spirit of intergovernmental respect and collaboration, guided by shared commitment to the interest of Canadians in environmental sustainability and economic opportunity.
5. Section 35 of the Constitution Act, 1982, recognizes the special constitutional relationship between the Crown and Indigenous peoples. The government of Canada is committed to achieving reconciliation with First Nations, Inuit and Métis in Canada through renewed nation-to-nation, Inuit-Crown, and government-to-government relationships.
6. The Government of Canada fully endorses the UN Declaration on the Rights of Indigenous Peoples, including Article 32(2), which calls for consultation and cooperation in good faith in order to obtain free, prior and informed consent with the Indigenous rights-holders prior to the approval of a project affecting their lands, territories and other resources. This Directive complements ongoing efforts to this end with a view to building deeper collaboration and new ways of working together.
7. The Government of Canada cannot transform our economy without the support of provinces, territories, municipalities, First Nations, Inuit and Métis partners, project investors and proponents. Strong partnerships and shared decision-making are essential to the success of clean growth.

2. Objective and expected results

1. The objectives of this Directive are to:
   1. Accelerate the Government of Canada’s decision-making around clean growth projects and set out clear federal roles and responsibilities within and across departments with the objective of getting clean growth projects built.
   2. Give confidence to Canadians in the integrity and efficiency of Canada’s regulatory approval processes that advance their interests in environmentally sustainable economic opportunities.
   3. Provide clarity on the roles and responsibilities of federal entities and communicate targets to enhance predictability; thereby promoting Canada as an attractive destination for clean growth investment.
   4. Reduce burdens on Indigenous groups and ensure efficiency by coordinating processes to fulfill Crown consultations on the same projects and emphasize early engagement towards strong partnerships.
2. The expected results of this Directive are:
   1. Federal entities make decisions related to projects within the targets set out in this Directive, ultimately advancing Canada’s climate, biodiversity and economic objectives.

3. Application

1. This directive is subject to the statutes, regulations and other regulatory instruments that may be in force from time to time. It does not intend to fetter the statutory authorities or discretionary powers as set out in those instruments or direction set out in other Cabinet Directives.
   1. For greater clarity, operational and decision-making autonomy of federal entities with independent or arms-length functions (Canadian Energy Regulator; Canadian Nuclear Safety Commission) is not affected by this Directive.
2. This Directive applies to the processes to support decision-making for all projects under the federal impact assessment or federal permitting processes required to get to construction, but does not presuppose a positive outcome on any federal decision.

4. Principles to guide regulatory and permitting processes for Clean Growth Projects

1. Upholding the objectives of federal acts is of utmost importance. The following principles should guide federal efforts to increase efficiency in the federal decision-making process:
   1. Certainty and predictability: federal requirements, processes, timelines and decisions should be clearly communicated to improve certainty and predictability for proponents and investors through a service-oriented lens and in consideration of commercial and construction timeline implications;
   2. Interjurisdictional cooperation: federal entities are expected to coordinate and, to the extent possible, integrate with provincial, territorial and Indigenous partners to find efficiencies and reduce duplication in review and consultation processes;
   3. Meaningful Indigenous partnerships: federal processes should reflect the importance of Indigenous consultation, engagement, participation and partnership in clean growth projects;
   4. Culture of urgency: federal entities should act with the urgency required to address the immediate risks of climate change;
   5. Comprehensive decision-making: federal decisions should be based on robust science, due diligence and respect for Indigenous knowledge, and consider the benefits of projects to Canada advancing the net-zero economic transformation.

5. Governance

1. The Deputy Ministers’ Regulatory Efficiency Action Council will include deputy heads of federal entities with a role in issuing key federal permits, licenses or authorizations for clean growth projects to get to construction.
2. The Action Council will:
   1. provide executive oversight of the implementation of this Directive;
   2. track clean growth projects with upcoming federal decisions;
   3. provide strategic advice on efforts to advance reconciliation through strong First Nation, Métis and Inuit, and Modern Treaty and Self-Governing partners engagement, consultation and participation in clean growth projects;
   4. oversee the public dashboard identified in 6 to improve transparency of federal permitting; and
   5. oversee internal tracking of projects.
3. The Action Council will meet regularly to receive updates on implementation of the Directive and may provide coordination advice on:
   1. the projects to be included on the public dashboard and internal tracking mechanisms;
   2. the clean growth projects to receive coordination support; and
   3. how to integrate coordination of Crown consultations, based on engagement with Indigenous partners.
4. The federal entities identified in Annex A will be regular members of the Council although participation may vary when certain sensitive information is discussed, for example cabinet confidences or issues related to national security. Other federal entities may be included on an ad hoc basis. 

6. Federal permitting coordination function

1. The Deputy Secretary of Clean Growth will act as Federal Permitting Coordinator and oversee the federal permitting coordination function.
2. Coordination will be improved across the federal government through:
   1. Collecting data from departments to track permitting progress of clean growth projects internally and for the purpose of public reporting¹;
   2. Maintaining a public dashboard to improve transparency of federal permitting processes;
   3. Developing permitting plans and other tools appropriate to coordinate activities across federal entities for clean growth projects being tracked under 6.b.i.; and
   4. Provide regular reports to the DM Regulatory Efficiency Action Council on the status of clean growth projects.
3. Subject to engagement with Indigenous partners, enhanced coordination of Crown consultation obligations will be integrated with the permitting coordination function.

7. The Clean Growth Office

1. The Clean Growth Office within the Privy Council Office will:
   1. provide strategic advice on the implementation of this Directive;
   2. act as a secretariat to the Deputy and ADM-level Councils;
   3. work closely with federal entities to track projects with upcoming federal decisions and report regularly to the Deputy Ministers’ Regulatory Efficiency Action Council on the status of projects;
   4. work with federal entities to ensure effective coordination of Crown consultations;
   5. conduct research and analysis and make policy recommendations to advance objectives of this Directive; and
   6. engage external experts and solicit feedback on whether the Directive is meeting objectives.
2. Per 7.a., drive coordination of federal permitting for clean growth projects identified in 6.b.i. that require multiple permits, including designated projects under the Impact Assessment Act and non-designated projects, and work with federal entities to establish coordinated review management systems and track the results of those systems.
3. The Clean Growth Office will collaborate with the Impact Assessment Agency of Canada and will formalize a collaboration arrangement for projects identified in 6.b.i. to:
   1. Provide a point of contact for project proponents;
   2. Collect data from federal entities on the status of projects;
   3. Develop permitting plans; and
   4. Maintain the public dashboard.
4. For greater certainty, Canadian Northern Economic Development Agency maintains a coordination role for projects in the North, where projects are not captured by the Impact Assessment Act and will work closely with the Clean Growth Office.
5. Further, federal, port and airport authorities remain responsible for meeting obligations under s.82 and s.83 of the IAA for non-designated projects on federal land and outside Canada, and should be coordinated to the greatest degree possible when multiple authorities have such obligations for the same project, including as outlined in guidance provided by the IAAC. Authorities will work with the Clean Growth Office on identified projects. 

8. Regulatory and permitting targets

1. Federal entities will complete impact assessments and federal permitting processes for designated projects under the Impact Assessment Act within five years.
2. Federal entities will complete federal permitting processes for projects that do not require impact assessments requiring multiple federal permits within two years. 
3. The Impact Assessment Agency and Canadian Nuclear Safety Commission will work together to ensure three-year review processes for nuclear project reviews.
4. Achieving these timelines will require proponents to engage early with federal entities, engage in good faith with affected communities, and provide timely data and information to enable decision making.

9. Culture change

1. All federal entities are expected to drive culture change within their organizations that reflects the urgent action required to accelerate clean growth, while protecting the environment and biodiversity, and meeting the objectives of legislation that structures and informs their respective mandates. 
2. Federal entities with a role in assessments and permitting will ensure that their review systems:
   1. Respond quickly to proponent applications;
   2. Work together to provide risk-informed, project-specific guidance on information requirements and reduce duplication in subsequent information requests to proponents and consultations with Indigenous rights-holders; 
   3. Consider project risks relative to Canada’s climate action and biodiversity objectives;
   4. Provide the Clean Growth Office with timely information necessary to implement this Directive;
   5. Ensure clear standards for risk evaluation and lines of accountability across regional offices;
   6. Ensure internal and external guidance for information required for assessment and permit applications is up-to-date;
   7. Coordinate Crown consultations with other regulatory departments and cooperate with a Crown consultation coordinator;
   8. Establish transparent review management systems in their organizations to track internal service standards and legislated timelines, in addition to the global targets set out in 8.; and
   9. Increase practice of early engagement ensure actions align with the United Nations Declaration on the Rights of the Indigenous Peoples.

10. Indigenous partnerships

1. Canada has a duty to consult and, as appropriate, accommodate Indigenous peoples whose rights may be impacted by a project on their lands, territories or resources. In addition, Indigenous equity ownership, participation, partnerships and involvement in decision-making can be essential to the success of clean growth projects.
2. In addition to the mandate set out in 8, and recognizing there are existing fora to advance specific clean growth initiatives in collaboration with Indigenous partners, the Deputy Ministers’ Regulatory Efficiency Action Council will meet regularly to:
   1. receive updates on these initiatives, including progress to implement United Nations Declaration on the Rights of Indigenous Peoples Action Plan items with links to clean growth; and
   2. provide a forum for coordination across federal entities on these initiatives.

11. Key sectors

1. Canada has a competitive advantage in a number of key sectors that are aligned with a net-zero future and will be fundamental to the domestic and global transition towards net-zero, including:
   1. Greening manufacturing, industry, and hard-to-abate sectors: Enabling the decarbonization of industrial processes would position Canada as a leader in the production, adoption, and export of lower-carbon products.
   2. Critical minerals: Critical minerals mining is a fundamental part of the Canadian economy and Canada is strategically positioned to capitalize on domestic supply chains and respond to the growing demand for these critical minerals, such as for the manufacturing of electric vehicles and other clean growth technologies.
   3. Power/Electricity: Canada is a clean electricity powerhouse. The availability of clean and affordable electricity in Canada allows us to produce low carbon products that countries around the world are interested in buying.
   4. Nuclear: Canada is a world leader in nuclear technology and development. Canada has established supply chains and a skilled workforce that can be leveraged to accelerate its global competitiveness as a producer of nuclear energy.
   5. Enabling infrastructure: Canada is a large country. Growth in the key sectors identified here will require significant investments in enabling infrastructure, such as ports, roads, rails, pipelines and transmission lines, to spur development.
   6. Clean fuels: Clean fuels will play a critical role in the transition to net-zero economy, within Canada and across the world, especially in hard-to-abate sectors. There is an opportunity for Canada to advance innovation and become a key exporter given Canada’s strengths in the building blocks of clean fuels and growing international demand.
2. Canada will continue to support innovation and development of new technologies. Key sectors to advance clean growth may evolve as new technologies come online.

12. Reporting

1. Regular updates will be provided to Cabinet through appropriate Ministers.
2. Regulatory entities will produce an annual report on trends in information requests to proponents, timelines for decision-making, and actions taken to reduce inefficiencies.
3. All relevant federal entity heads will report on their results towards achieving the objectives of this Directive in their Departmental Results Report.
4. Status of permitting for clean growth projects designated under the Impact Assessment Act and other clean growth projects identified by the Deputy Ministers’ Regulatory Efficiency Action Council identified under 6.b.i will be reported via the public dashboard.

13. Review

1. The DM Regulatory Efficiency Action Council will regularly review the implementation of this Directive. A comprehensive review of the effectiveness of this Directive and associated initiatives will be conducted within three years.

Annex A

• Canadian Energy Regulator
• Canadian Northern Economic Development Agency
• Canadian Nuclear Safety Commission
• Crown-Indigenous Relations and Northern Affairs Canada
• Department of Fisheries and Oceans
• Environment and Climate Change Canada
• Finance Canada
• Health Canada
• Impact Assessment Agency of Canada
• Indigenous Services Canada
• Natural Resources Canada
• Privy Council Office
• Transport Canada
• Treasury Board Secretariat

Note: Participation by representatives of the Canadian Energy Regulator and the Canadian Nuclear Safety Commission, given arm’s length functions of those entities, in the Action Council will be managed with due regard to their operational independence as well as to safeguard against any disclosures of cabinet confidences.