Lost in red tape: Canada’s chronic regulatory delay disorder

Canada possesses many of the minerals the world needs to power electrification, artificial intelligence, defence technologies and the energy transition. Prime Minister Mark Carney has repeatedly argued that Canada is an energy and resource superpower, blessed with vast reserves of critical minerals and other natural resources that are increasingly sought after by global markets. He has also pledged to accelerate hundreds of billions of dollars in investment in mining, energy, infrastructure and other nation-building projects.

Unfortunately, the challenge is that Canada’s resource wealth has too often been matched by an inability to bring projects into production in a timely manner.

Recognizing the problem, both federal and provincial governments have launched a series of initiatives aimed at reducing regulatory delays. Ottawa created the Major Projects Office (MPO) in 2025 to coordinate reviews of projects deemed to be in the national interest, while promising a “one project, one review” approach and a maximum two-year federal approval timeline for designated projects. The federal government has also introduced the Building Canada Act, identified critical minerals and mining projects for accelerated review, expanded Indigenous consultation funding and proposed reforms to streamline federal assessment processes. Additionally, the mining industry can benefit from new financing mechanisms such as Canada’s Sovereign Wealth Fund and Defence Industrial Strategy.

Provincial governments have also moved to improve competitiveness. Ontario has promoted critical mineral development through its Critical Minerals Strategy and investments in the Ring of Fire region, while British Columbia has sought to streamline permitting through its Critical Minerals Strategy and Mining Framework. Quebec continues to support mining investment through Plan Québec and strategic investments in battery materials and critical mineral supply chains.

These efforts are definitely welcome. Yet, they are also an acknowledgement that Canada’s permitting and regulatory system has become a competitive disadvantage.

Many of the projects now being fast-tracked have already spent years — and in some cases more than a decade — navigating environmental assessments, permitting requirements and overlapping federal and provincial reviews. The new measures may help move projects across the finish line, but they are largely corrective rather than transformative. They address delays that have already occurred rather than preventing the next generation of projects from becoming trapped in the same regulatory maze.

In a global race for critical minerals, capital is mobile and timelines matter. Countries such as Australia and the U.S. are moving aggressively to secure supply chains and attract investment. Canada still has world-class mineral deposits, strong environmental standards and a skilled workforce. The question is whether it can match those advantages with a regulatory system capable of delivering projects before market opportunities disappear.