Welcome to Economic Insights, your twice-weekly deep dive into the major projects and policy shifts shaping the Canadian economy.

Stories we are following:

• The federal government has kicked off the process to designate three projects of national interest under the Building Canada Act: two Arctic infrastructure projects and a nuclear waste repository. Worth noting: much of the review process for all three projects falls outside the Act’s reach, with the northern projects being governed by co-management boards and the CNSC explicitly retaining its independent regulatory authority under the legislation.
  
• Seven Williams Treaties First Nations east of Toronto have secured an equity stake in Ontario’s first small modular reactor project at Darlington. Worth noting: the deal marks the first time the federal and provincial loan guarantee programs have collaborated to back an investment by First Nations.

Ottawa kicks off process to designate 3 projects of national interest, including nuclear waste (iPolitics)

The federal government is putting the Building Canada Act to the test by moving to designate three projects as being in the national interest. While many expected Alberta’s proposed northwest bitumen pipeline to be first in line for designation, Ottawa decided to start north. 

• The chosen ones: Nunavut’s Grays Bay road and port and the Mackenzie Valley highway — which was referred to the Major Projects Office earlier this spring — have been put forward for designation under the Act. Joining them is a notable newcomer: the deep geological repository for nuclear waste in northwestern Ontario, which was not officially referred to the Major Projects Office. (Although, not to flex, but we saw it coming in January: Major Projects Office involved in nuclear projects that aren’t on Carney’s official list.)
• The fine print: For two of the three projects, the federal government’s ability to accelerate timelines runs directly into the authority of co-management boards established through modern land claims agreements. The Nunavut Impact Review Board, for instance, isn’t expected to complete its review of the Grays Bay project for a few years, even as Ottawa floats a 2029 construction start. Officials acknowledged they cannot influence that review process, but suggested designation could streamline areas of federal jurisdiction, such as Fisheries Act approvals, and run consultations in parallel rather than consecutively.
• The political dynamic: Northwest Territories Finance Minister Caroline Wawzonek pushed back on the perception that fast-tracking means steamrolling. She pointed to the re-routing of the Mackenzie Valley highway after consultations with Pehdzéh Kı̨́ First Nation as evidence that slowing down can, paradoxically, move things forward. “We aren’t going to let projects just be done to us,” she said. “We want to do projects together.” Noted: no Indigenous leaders spoke at today’s announcement in Yellowknife.
• The nuclear carve-out: For the proposed nuclear waste repository in northwestern Ontario, Ottawa faces a different constraint: it cannot issue a conditions document until the CNSC signs off, meaning designation speeds up some elements but leaves the core regulatory approval untouched. Final assessment guidelines from IAAC are expected in July. Asked whether the government would proceed if Treaty 3 rights-holders firmly opposed designation, an official said conversations with impacted groups would be ongoing. Eagle Lake First Nation is challenging the project in court, saying it should be considered a host community alongside Wabigoon Lake.
• The signal: Beyond regulatory timelines, officials argued that national interest designation carries its own value as a market signal to attract mining investment and a potential influence on how federal funding programs are allocated. Designation, they were careful to note, neither guarantees financing nor makes a project more likely to receive it than one simply referred to the Major Projects Office.

Seven First Nations buy into Canada’s first small nuclear reactor with $715M stake (iPolitics)

Seven Williams Treaties First Nations east of Toronto will become equity partners in one of the four small modular reactors being built at the Darlington New Nuclear Project — the result, chiefs say, of five years of due diligence and a 2018 land rights settlement that changed how proponents think about their treaty partners.

• The deal: Ottawa and Ontario are providing $715 million in loan guarantees — split roughly evenly between the Canada Indigenous Loan Guarantee Corporation and the Building Ontario Fund — giving the nations a less than 10 per cent minority interest in the project. Finance Minister François-Philippe Champagne called it the largest Indigenous loan guarantee ever issued under the federal program, surpassing the $400 million guarantee provided last year for 38 First Nations to acquire a stake in the Westcoast natural gas pipeline.
• What the chiefs said: Mississaugas of Scugog Island First Nation Chief Kelly LaRocca tells iPolitics the consultation process is “far from over,” and the communities will continue to hold the project to the highest environmental and safety standards, particularly around nuclear waste management.
• The project itself: Ontario has authorized $7.7 billion for the first BWRX-300 reactor, with three more planned at a total cost of roughly $21 billion. The first is scheduled for completion by 2030; all four together would produce 1,200 megawatts — enough to power more than a million homes. It would be the first SMR of its kind completed in the G7, and utilities from Saskatchewan to New Brunswick are watching closely.
• The skeptics: Critics are raising alarms about cost. A June 2026 analysis commissioned by Environmental Defence found Ontario’s nuclear-heavy electricity plan could cost $117 billion more in capital costs through 2050 compared to a renewables-focused alternative — and that’s assuming the SMR comes in on time and on budget.

By the numbers:

2027: The earliest a pre-conference hearing report is expected from the Nunavut Impact Review Board on the Grays Bay road and port project.

18x: How far above its permitted flaring level LNG Canada’s spare flare was operating in April, according to documents obtained from the BC Energy Regulator through freedom of information requests.

230 km: The length of the all-season road that would be built through the Northwest Territories and Nunavut as part of the Grays Bay road and port project, which proponents say would unlock critical mineral mining opportunities in the North.

Major projects watch:

– Ottawa’s nuclear strategy released Monday includes no new funding, but the government said it will release a policy by April 2027 outlining conditions for federal support ​and the ​financing ⁠tools available for new nuclear projects. One idea floated around earlier this year involves potentially extending loan repayment timelines from the current 30-40 years to 70-80 years.

– Equinor has told investors it will decide in early 2027 whether it will proceed with its proposed Bay du Nord oil project off the east coast of Newfoundland.

– The Impact Assessment Agency of Canada is inviting public and Indigenous comments on a proposed liquefied petroleum gas storage and transload facility at the Port of Prince Rupert. Trigon Pacific Terminals Ltd. is proposing up to 20 rail unloading racks and tank storage capacity of up to 158,000 m³, with LPG shipped to global markets via an existing jetty. 

– Two northwestern Ontario First Nations have authorized First Mining Gold’s Springpole Gold Project to move forward, but stopped short of endorsing it. Cat Lake First Nation and Lac Seul First Nation completed what they say is Ontario’s first Anishinaabe-led impact assessment, prioritizing Indigenous knowledge over conventional Western science in evaluating the open-pit gold and silver mine northeast of Red Lake. Their authorization comes with 35 terms and conditions, and the nations are now calling on the Ontario government to support those negotiations. More from the CBC.

– With less than a week left before Alberta’s deadline to submit a pipeline proposal to the federal government, British Columbia Premier David Eby says his province still isn’t part of the discussions. “I know Alberta is working closely with the federal government on their proposal; we are not at the table,” Eby told reporters Friday.

– The Oil Sands Alliance — formerly the Pathways Alliance — may be holding town halls in Alberta’s Lakeland region this fall, according to Bonnyville-Cold Lake-St. Paul MLA Scott Cyr. The update came during a St. Paul town council meeting where local officials asked for help connecting with Alliance representatives for updates on the carbon capture project, after a delegation from NO CO2 Pipeline Alberta appeared before council to share concerns about the development. Lakeland Today reports.

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