Operating context

The Impact Assessment Agency of Canada (IAAC) operates in a constantly changing environment, where external factors such as markets and the socio-economic climate can affect the type, timing, volume, and distribution of projects requiring impact assessments. Following the October 2023 Supreme Court of Canada (SCC) Decision on the constitutionality of the Impact Assessment Act (IAA), IAAC undertook immediate steps to support the Government in developing legislative amendments to align the IAA with the SCC Decision. At the same time, the Government of Canada released the Interim Guidance on the IAA to ensure clarity for projects already undergoing assessments, including for proponents, Indigenous partners, investors, and the public. The amendments, which came into force on June 20, 2024, respond to the SCC’s Decision, including focusing decision-making on areas of clear federal jurisdiction. They also enhance the flexibility to cooperate with other jurisdictions by ensuring that the federal government works collaboratively with provincial and territorial partners to achieve the mutual goal of supporting an efficient, effective, inclusive assessment process that protects the environment.

Impact and environmental assessments are planning and decision-making tools that support the Government of Canada’s priority to protect the environment, while strengthening the economy and encouraging investment. In particular, these assessments:

• assist with project design;
• ensure that input and perspectives from Indigenous Peoples, the public, and stakeholders are considered before decisions are made; and
• identify and implement appropriate measures to mitigate potential adverse federal effects.

IAAC engages and consults meaningfully with Indigenous Peoples and the public, provides opportunities throughout assessment processes for them to participate, and manages funding programs to facilitate their participation in these processes. For example, IAAC administers the Participant Funding Program, which supports Indigenous groups, individuals, and non-profit organizations interested in participating in federal environmental and impact assessments, as well as regional and strategic assessments. Indigenous and public participation in federal assessments ensures an open and balanced process, while strengthening the quality and credibility of project reviews.

Assessment decision-making is transparent and guided by western science, Indigenous Knowledge, community knowledge, and other reliable evidence. Under the IAA, assessments include Gender-based Analysis Plus (GBA Plus), which examines differential project impacts on communities and different groups of individuals.

The Crown has a legal duty to consult and, where appropriate, accommodate Indigenous Peoples when it considers conduct that may adversely affect Indigenous or treaty rights. By seeking free, prior, and informed consent, and maximizing collaboration and partnerships with Indigenous Peoples, IAAC advances Canada’s commitment to reconciliation and respects the rights of Indigenous Peoples – as well as their knowledge, cultures, and interests – in project assessments.

The assessment process established under the Canadian Environmental Assessment Act, 2012 (CEAA 2012) and the current IAA coexist with other impact assessment requirements established under several land claim agreements, including:

• James Bay and Northern Quebec Agreement;
• Northeastern Quebec Agreement;
• Nisga’a Final Agreement;
• Labrador Inuit Land Claims Agreement;
• Tsawwassen First Nation Final Agreement;
• Maa-nulth First Nations Final Agreement; and
• Inuvialuit Final Agreement.

Close collaboration between IAAC and Indigenous rights-holders ensures the efficient and effective coordination of these processes. IAAC promotes impact assessment in a manner consistent with the provisions of the IAA and ensures that Canada meets its international obligations related to impact assessment. IAAC continues to engage with Indigenous partners, stakeholders, and the public, and works in close cooperation with the provinces on project assessments, with its emphasis clearly on the prevention of adverse effects in federal jurisdiction.