In the face of growing environmental challenges, Canada needs strong, modern policies that ensure economic prosperity and environmental protection are mutually reinforcing. The Impact Assessment Act (IAA), although not perfect, was designed to do just that. Impact assessment is a planning tool that provides a clear, transparent process for evaluating the positive and negative environmental, economic, health, and social effects of proposed projects.

As a tool, it ensures the environment and Indigenous rights are protected by outlining what actions are required by a project proponent to reduce or prevent adverse effects. It is not intended to be used to stop a project from being built. 

The IAA is coming under renewed scrutiny as pressure to speed up economic development increases. But this would take Canada backwards, not forward. Attracting investment in major projects that create new jobs and new export markets is more important than ever to Canada’s sovereignty. And access to the European market requires that Canada maintain a strong regulatory environment on carbon, which also incorporates rigorous impact assessment.  

Learning from the past 

History has shown the consequences of weakening environmental oversight. Before the Impact Assessment Act (IAA), Canada’s regulatory framework was fragmented and inefficient. Environmental assessments were handled by multiple federal departments, with no clear legislated timelines. The process focused solely on adverse environmental effects, neglecting to consider both the positive and negative impacts of projects. It relied exclusively on “Western” science, overlooking Indigenous knowledge and alternative sources of evidence. Indigenous rights and interests were largely unrecognized. This lack of consistency and transparency undermined public trust across the board — from industry to environmental groups. Major projects faced significant delays, legal challenges, and widespread opposition due to vague guidelines and insufficient environmental protections.  

Dismantling or significantly altering the current impact assessment system would be a step backward — returning to an outdated approach that fails to support long-term sustainability. It would leave industries and communities in uncertainty, damage Canada’s reputation as a responsible resource developer, and jeopardize our ability to strengthen global trade partnerships. 

While some industry groups have been lobbying to scrap or weaken the current system, others do not want the federal government to create even more regulatory uncertainty. Government policy can’t keep going back and forth. Canadian businesses need regulatory certainty and a predictable framework to attract investments. It’s just basic economics.  

Let’s talk about why the IAA is important and how it can be strengthened, not weakened.

Impact assessment is a planning tool that provides a clear, transparent process for evaluating the positive and negative environmental, economic, health, and social effects of proposed projects.

Economy or Environment: A False Choice 

Critics argue that environmental assessments slow down economic development, but the reality is that a strong economy depends on a healthy environment. Industries like forestry, fisheries, and tourism — worth billions to Canada’s GDP — rely on well-managed natural resources. When development proceeds without rigorous assessment, we risk damaging the very areas that sustain jobs, communities, and long-term prosperity that we depend on. We have seen that story play out in numerous communities across Canada.  

Photo: Elliston, Newfoundland by Meny Arigur

The IAA enables investment in major projects and ensures responsible development through an open and efficient process. As a planning tool, impact assessment ensures that economic decisions are made with full consideration of both the positive economic, social and environmental benefits of a project, as well as its environmental consequences, establishing the conditions under which projects can proceed while mitigating harms. Rather than slowing development, the system should be hailed as a tool for preventing costly mistakes that harm both businesses and Canadians.  

The idea that environmental safeguards are an obstacle to economic growth is outdated. In fact, protecting nature is an economic necessity. Extreme weather, loss of wildlife and plant species, and climate-related disasters are already costing Canadians billions of dollars annually.

The IAA helps Canada make informed decisions that prevent environmental degradation, ensuring that businesses and communities don’t bear the financial burden of poor planning. When projects are developed responsibly, they are more resilient, more sustainable, and more likely to gain public support, creating long-term economic stability.