The Canadian federal government continues to introduce stricter environmental regulations impacting business practices. These regulatory updates demonstrate Canada’s focus on further developing and enforcing its environmental laws to protect the country’s environmental landscape.
Below are key insights to help businesses navigate these changes to ensure compliance and minimize risks.
- PFAS and Plastics Reporting. Canada’s new reporting regime for per- and polyfluoroalkyl substances (PFAS) under the Canadian Environmental Protection Act mandates businesses to disclose their 2023 manufacturing, importation and use of reportable PFAS by January 29, 2025, unless an extension is requested and granted. Similarly, the Federal Plastics Registry, launched in 2024, requires reporting on the quantity and types of plastics manufactured, imported and placed on the market, with the first deadline on September 29, 2025. Both reporting regimes demand supply-chain collaboration and tracking to avoid penalties.
- Administrative Monetary Penalties. Administrative monetary penalties (AMPs) are becoming a key enforcement tool in Canada, particularly to penalize breaches of legislative requirements and regulatory authorizations, with increasing fines for non-compliance. Updates to Manitoba’s Environment Act and Canada’s Competition Act and enforcement of Ontario’s circular economy laws highlight a trend toward increasing AMP usage to enforce regulatory requirements.
- Impact Assessment Act. Launched in 2019, the Impact Assessment Act faced criticism for exceeding federal jurisdiction, mainly from Alberta. After the Supreme Court of Canada ruled parts of the act unconstitutional in 2023, amendments in 2024 narrowed federal powers to focus on adverse effects within provincial jurisdictions. These changes aim to balance environmental oversight with respect for provincial authority.
- Caribou Habitat Protection. Efforts to protect boreal caribou habitats have increased regulatory oversight, particularly in Quebec, where emergency federal orders may be issued to prevent habitat loss and have increased the time to process approval applications. This regulatory environment poses challenges for resource development projects, requiring businesses to address conflicts between habitat preservation and approvals. Indigenous advocacy has significantly influenced government policy in this area.
- Alberta Carbon Pricing Regime. Alberta has amended its carbon pricing regime to expand compliance credits for carbon capture and storage projects and impose stricter emissions benchmarks over time. To address potential credit oversupply, the regime has accelerated credit expirations and increased credit usage limits for compliance with emissions reduction requirements. Recent enforcement actions, including penalties levied against third-party credit verifiers, highlight increased scrutiny under the revised regime.
