News

Back to news
Seize03 - 26 August 2025

BILL C-5: CONTROVERSIAL LEGISLATION WITH NATIONAL REACH

On June 26, 2025, Bill C-5—officially titled the Free Trade and Labor Mobility in Canada Act and the Building Canada Act — was given royal approval.  Presented as a measure to accelerate the launch of major infrastructure projects and strengthen the country’s economic resilience in the face of trade tensions with the United States, this law creates a new procedure for designating certain projects as being “of national interest.” These projects can therefore benefit from fast-track processing, including exemption from certain environmental and regulatory laws, and even from the usual public consultation mechanisms. 

Although welcomed by several economic actors, this approach has sparked fierce opposition among environmental groups and Indigenous representatives, who see it as an unprecedented concentration of power in the hands of the federal executive branch, to the detriment of democratic principles and respect for constitutional rights. 

Indigenous Consultation: A Process Deemed Insufficient 

One of the most significant criticisms of Bill C-5 concerns the lack of a clear mechanism to ensure significant participation by Indigenous peoples in decision-making. The National Chief of the Assembly of First Nations (AFN), Cindy Woodhouse Nepinak, was the only Indigenous representative to officially testify before thee members of parliament. She criticized the speed of the legislative process, the lack of structured dialogue with the communities concerned, and the fact that the principle of free, prior, and informed consent (FPIC) — recognized in the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) — was not included in the legislative text. 

Instead, the government refers to the creation of an Indigenous advisory committee, without specifying its mandate, composition, degree of independence, or actual decision-making power. Several Indigenous leaders have expressed concerns that this committee may serve as a mere figurehead without ensuring genuine representation or accountability to First Nations. 

Environmental Assessments and Federal Governance  

Part 2 of the bill, entitled the Building Canada Act, fundamentally changes Canada’s environmental assessment system by allowing the Cabinet to designate projects of national interest that could be exempt from laws such as the Species at Risk Act or the Impact Assessment Act. According to several organizations, this new legislation overturns decades of case law based on scientific, participatory, and legally regulated approaches. 

One of the most concerning aspects for environmental organizations and Indigenous communities is the legal vagueness surrounding the very concept of a “project of national interest.” The legislative enactment does not provide a clear definition of what such a project entails, giving the Federal Cabinet unprecedented discretionary power. This lack of clear guidelines raises concerns about potential abuses, particularly by allowing the executive branch to bypass the parliamentary process and suspend the application of environmental laws without public debate.  

Growing Tension with the Principles of the UNDRIP 

Adopted in 2021, the United Nations Declaration on the Rights of Indigenous Peoples Act committed Canada to aligning its laws with international principles of recognition, participation, and consent of Indigenous peoples. Yet, several observers argue that Bill C-5 constitutes a direct breach of this commitment. According to former federal MP and Indigenous policy expert Robert Falcon Ouellette, it could even be called a “modern version of the Indian Act. The speed of adoption, the lack of rigorous consultation processes, and the extraordinary powers granted to federal ministers are reminiscent, according to some, of colonial practices of past centuries. 

For many Indigenous leaders, this law represents a disturbing turning point, where economic imperatives are now prioritized at the expense of dialogue, transparency, and respect for collective rights. This concern is shared by Chief Lance Haymond of the Kebaowek First Nation, who participated in the Standing Committee on Transport, Infrastructure, and Communities panel of the House of Commons. 

  • “I am here today to express my strong and unequivocal opposition to Bill C-5. A bill that, under the pretext of reducing red tape and building the nation, threatens the very foundations of Canada’s constitutional order, the rights of First Nations, and our shared journey toward reconciliation. Let’s be clear: Bill C-5 proposes to reduce the federal regulatory burden and accelerate major infrastructure projects, but in doing so, it sets aside an essential constitutional obligation. The obligation to consult and accommodate First Nations is not a procedural hurdle or a box to tick. It is a constitutional imperative recognized in section 35 of the Constitution Act of 1982, repeatedly confirmed by the Supreme Court, and reaffirmed in Canada’s commitments under the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP).” 

The implementation of Bill C-5 opens the door to new legal and political disputes between the federal government, First Nations, and civil society groups.  At SEIZE03, we are closely monitoring developments surrounding this new legislation, particularly with  regard to its impact on Indigenous rights, environmental governance, and intergovernmental dynamics.