Prime Minister Mark Carney has announced a significant shift in the federal government’s approach to pipeline construction. During a June 6th press conference, he explicitly stated that Ottawa will not override a province’s opposition to such projects. This new policy prioritizes consensus-building among all stakeholders – provinces, territories, and Indigenous peoples – before any project receives federal approval.

This announcement is a key component of the newly introduced One Canadian Economy Act (Bill C-5). Carney described the bill as a two-pronged approach. The first part aims to dismantle what he calls “federal barriers to internal trade and labour mobility,” effectively creating a unified Canadian economy. The second, and perhaps more impactful aspect, focuses on fostering national projects while ensuring provincial, territorial, and Indigenous voices are heard and respected.

This commitment to consensus marks a departure from previous federal strategies. By making provincial consent a prerequisite, the government is signaling a willingness to navigate the complex landscape of intergovernmental relations and Indigenous rights, a crucial step in advancing major infrastructure projects while respecting regional autonomy.