From Barriers to Breakthroughs
A practical roadmap to fix Canada’s major project approval and regulatory system to unlock investment in Canada.
The root cause is clear: Canada’s project approval and regulatory system has become the single largest barrier to investment and prosperity in the country.
The problems are well known among government, regulators and investors. What has been missing is a clear and credible plan to fix them.
From Barriers to Breakthroughs delivers that plan.
In a world where capital is mobile and competition is intensifying, Canada cannot afford to delay any longer. The federal government must move quickly to restore certainty, rebuild investor confidence, and get projects built.
A Roadmap to Get Investment Back Into Canada
This is a system-wide roadmap to restore certainty, reduce delay, create efficiency, and make Canada competitive again.
The roadmap focuses on two urgent priorities: reforming major project approvals through changes to the Impact Assessment Act (IAA) and the Canadian Energy Regulator Act (CER Act) and modernizing Canada’s broader regulatory system so it supports growth rather than slowing it down.
Part I: The Impact Assessment Act
This report proposes comprehensive amendments to the IAA to create a more efficient, transparent and predictable framework for major projects.
Part II: The Canadian Energy Regulator Act (CER Act)
This report proposes thorough reforms to the CER Act to provide faster and more certain timelines, remove of duplication, and create a predictable decision-making framework.
Building a Regulatory System that Supports Investment
This report recommends a broader system-wide overhaul to reduce the cumulative regulatory burden and improve how regulations are designed and implemented across government.
Addendum: Addressing Today’s Regulatory Barriers to Investment
This report recommends immediate, practical actions government can take now to address well-known regulatory barriers by repealing, streamlining or modernizing rules to reduce costs, restore certainty and unlock near-term investment.
Actionable Plan to Get Major Project Investment Flowing
The Business Council of Alberta’s From Barriers to Breakthroughs is the culmination of months of robust research and analysis to address the major issues deterring investment in Canada. The comprehensive roadmap provides clear recommendations to fix Canada’s major project approval process and regulatory system and restore the country’s ability to attract investment and grow the economy.
Without implementing this urgent reform, the federal government’s goal of unlocking $1 trillion in investment over the next five years will be out of reach.
At the centre of the roadmap is a two-part approach: first, fix how major projects are reviewed and approved; second, overhaul how the broader regulatory system is designed so it can support investment and growth.
Key recommendations on major project approvals include:
The report also recommends broader system-wide reforms to reduce the cumulative regulatory burden and improve how regulations are designed and implemented across government. These include:
More regulation does not mean better regulation. The BCA’s roadmap prioritizes greater efficiency and certainty while reinforcing the importance of strong environmental protections and Indigenous participation. With the right policy and regulatory design, these goals can be advanced alongside a more competitive investment environment.
From Barriers to Breakthroughs is the result of more than a year of research, consultation, and analysis involving more than 150 economists, legal experts, policy specialists, and business leaders across multiple sectors of the Canadian economy.
Canada Must Act Now
The structure of Canada’s federal project approval and regulatory framework creates uncertainty, delay, and political risk that drives investment away. Here are some of the effects of regulatory burden on investment:
Regulatory burden impacts investment decisions
A recent survey by the Business Council of Canada shows 41% of Canadian CEOs identify the domestic regulatory burden as the most important factor influencing investment decisions.
Canada's regulatory framework ranks 33rd out of 100 countries
The World Bank Business Ready initiative ranks Canada’s regulatory framework 33rd out of roughly 100 countries. Canada ranks closer to China (34th) than to the United States (5th).
Business investment per worker is down 11%
Previous BCA analysis showed that in just over a decade, business investment per worker has declined by 11%, while it has increased by 45% in the United States. Today, Canadian firms invest roughly half as much per worker as their American counterparts.
Over 130,000 requirements in Canada's federal regulatory system
By 2021, the federal regulatory system contained more than 130,000 requirements—up 37% since 2006—despite multiple red-tape reduction efforts. A Statistics Canada study estimates that the 37% increase in regulations is associated with:
- ~9% lower business investment growth,
- 1.7 percentage point lower GDP growth and,
- 1.3 percentage point lower employment growth in the business sector.
Approximately 735 hours spent on regulatory compliance each year
According to the Canadian Federation of Independent Business the average Canadian business spends approximately 735 hours per year on regulatory compliance, with about 35% of that time considered duplicative or unnecessary.
Lend Your Voice
Canada has what the world needs. But, without regulatory certainty, investment will continue to go elsewhere.
Whether you are a business leader, policymaker or stakeholder, you have a role to play in helping advance solutions that restore confidence, reduce barriers, and get projects built.
Read through our briefing materials
Ministry-Specific Materials
Acknowledgements
The Business Council of Alberta (BCA) would like to thank Energy Connections Canada (ECC) for their contributions to this project, which included the convening of experts from ECC membership to help inform the Canadian Energy Regulator Act (CER Act) report.
We would also like to thank the individual members of the Working Groups who contributed their time, expertise, and hard work to the development of these reports.
Inquiries
For more information on this project, to request further advocacy materials or to arrange an interview with a spokesperson, please contact: media@businesscouncilab.com