Enserva’s Provincial Spotlight Series provides an overview of the latest policy updates, regulatory changes, and industry-specific developments in our members’ operating areas.
ICYMI: The previous issue, published on June 4th, highlighted Saskatchewan.
Federal Policy Developments
June has been a pivotal month for advancing Prime Minister Carney’s policy agenda. In the wake of escalating U.S. trade tensions and in the lead-up to the G7 Leaders’ Summit, the federal government has introduced a suite of measures aimed at strengthening energy security, accelerating infrastructure delivery, and enhancing market competitiveness.
Two key developments stand out: finalized guidance on greenwashing enforcement under the Competition Act, and new legislation to streamline interprovincial trade and fast-track nation-building infrastructure.
Final Guidelines on Environmental Claims: On June 5, the Competition Bureau finalized guidance interpreting Canada’s new anti-greenwashing rules under the Competition Act. Businesses must now back environmental claims with rigorous testing or internationally recognized methodologies. Key clarifications address investor communications, recognition standards, and due diligence protections. However, unresolved ambiguities and the upcoming private right of action provisions (in force June 20) introduce litigation and compliance risks—especially for energy sector actors navigating complex ESG obligations. Read the full member brief here.
Legislation to Build One Canadian Economy: On June 6, the federal government introduced Bill C-5, which proposes a new Building Canada Act and Free Trade and Labour Mobility in Canada Act. The legislation seeks to accelerate “nation-building” projects and ease interprovincial trade and labour mobility restrictions.
Highlights include:
- A fast-track framework coordinated by a new Major Projects Office
- Conditional federal approvals based on national interest criteria
- Streamlined licensing for tradespeople on federally regulated projects
- Recognition of provincial standards as equivalent federally
While promising, the legislation lacks statutory timelines and clear jurisdictional roles, raising concerns around provincial coordination and Indigenous consultation. Read the full member brief here.
Canada’s Defense Spending and NATO Commitment
Prime Minister Carney announced that Canada will meet NATO’s military spending target of 2% of GDP by early 2026, five years ahead of schedule. This move aims to modernize Canada’s aging military infrastructure and reduce dependency on the United States for defense procurement. Investments will focus on new defense capabilities, including submarines, aircraft, ships, and advanced surveillance technology. It is hoped that this new timeline will help Canada secure a new economic and security deal with the U.S.
Ontario Energy Policy Updates
On June 3, the Ontario government introduced Bill 40: Protect Ontario by Securing Affordable Energy for Generations Act, 2025, aimed at accelerating regulatory approvals and expanding energy infrastructure. The legislation proposes targeted amendments to the Electricity Act and Ontario Energy Board Act, including:
- Codifying “economic growth” and hydrogen development as objectives for Ontario’s energy agencies;
- Allowing bespoke connection requirements for high-demand projects like data centres;
- Enabling public funding (beyond ratepayers) for electricity-related payments;
- Requiring the Ontario Energy Board to weigh economic development when approving new transmission or distribution lines.
These changes are designed to reduce barriers to investment and align with Ontario’s broader goal of securing affordable, clean, and reliable energy. The legislation is expected to link with the province’s upcoming Integrated Energy Plan, which will outline long-term energy system needs and priorities.
Construction of Canada’s First Small Modular Reactor (SMR): Ontario has commenced building Canada’s first SMR at the Darlington site. This project, led by Ontario Power Generation using GE Vernova’s boiling water reactor design, aims to address the province’s projected 75% increase in electricity demand by 2050. Each reactor will supply power to approximately 300,000 homes and is expected to be operational by 2030.
The Bottom Line
Federal and provincial policy appears to be shifting to enable greater certainty, speed, and accountability for business—yet significant questions remain. As Canada hosts global leaders in Kananaskis for the G7, it will need to walk the talk: showing the world it can get major projects done while maintaining trust and transparency.
Note: This is our final issue for the summer. The Enserva Provincial Spotlight Series will resume in September.