Single federal standard replaces years of layered approvals. Investor confidence in Canada holds firm amid escalating trade tensions with the US.
Canada will apply a single national standard to major project approvals, one project, one review, one year, said Prime Minister Mark Carney during the second day of the Canada Investment Summit on 15 September. The measure, set out in the new Build Canada Strong Act, is paired with what Carney described as the lowest effective tax rate on new investment among major economies.
Speaking to institutional investors and government leaders, Carney framed the changes as a structural shift in how quickly capital can move from commitment to construction, positioning Canada as "laying out the foundation" for nearly half a trillion dollars in new investment commitments.
A New Standard For Project Approvals
The central measure is the Build Canada Strong Act, which establishes a single standard "for projects and supply chains": "one project, one review, one year." Until now, project processes and reviews have run under separate provincial rules as well as federal ones, adding time and uncertainty for investors weighing Canadian opportunities. The new standard is designed to replace that patchwork with one predictable federal benchmark.
Carney was direct about the intended signal to capital markets. Speed, certainty and predictability are themselves competitive advantages, he said.
"When Canada says it wants something built, Canada will get it built," said Carney.
The Lowest Tax Rate In The G7
The faster approval process is paired with a significant tax proposition. Carney said Canada's effective rate on new investment "will be the lowest of any major economy in the world, less than one half the rate in the United States". In his prepared remarks, he set out the comparison more precisely, stating the new rate would be "the lowest marginal effective tax rate in the G7, roughly one third of the OECD average and one quarter of the G7 average".
Carney also confirmed that the new productivity mega deduction will allow immediate expensing across two thirds of qualifying assets, covering machinery and manufacturing equipment, software, patents, R&D, fibre, rail, pipelines and other infrastructure.
Carney pointed to capital already moving under the current environment. Investment funds are mobilising more than C$14 billion to grow Canadian companies, including what he described as "the largest venture capital fund of its kind in Canadian history", the C$4 billion Radical Breakouts fund aimed at scaling Canadian AI companies.
Bell Canada and the Government of Saskatchewan have also announced an expansion of the Bell AI Fabric hub in Saskatchewan, quadrupling its capacity from 300 megawatts to 1.2 gigawatts. Total capital investment could reach C$52.5 billion, which the federal government has called the largest capital investment in Saskatchewan's history, and is expected to support 4,500 jobs. The site borders land owned by George Gordon First Nation, which has an agreement with Bell covering Indigenous procurement participation and workforce development.
Investor Confidence Holds Despite Trade Tensions
The announcements come against a backdrop of escalating trade conflict with the United States, with talks between the two countries currently stalled. Despite the tariff dispute, institutional investor sentiment toward Canada has strengthened.
A CPP Investments | Investissements RPC survey ranked Canada first among eight developed economies for investment opportunities, with 94 per cent of respondents saying Canada was where they wanted to deploy more capital. The Kearney FDI Confidence Index also reached a similar conclusion, finding that Canada's overall investment confidence score rose in 2026 while the United States' declined, describing Canada as "closing the gap" on the US.
Carney also connected the domestic measures to a deepening relationship with Europe, confirming that discussions with the European Union on "a unique security and economic alliance" will begin the following month, covering "core capabilities across AI, payments, space, critical minerals, and clean energy".
Indigenous Partnership Named as Part of the Model
Alongside the focus on speed and taxation, Carney also set out a broader commitment: Canada will build "in full partnership with Indigenous Peoples from the start."
He pointed to the C$70 billion clean energy agreement announced the previous month between Newfoundland and Labrador, Quebec, Ottawa and the Innu Nation, covering 14 gigawatts of hydro, wind and storage capacity, which he called "the functional equivalent of 18 Hoover Dams" and enough to power every home in Toronto, Montreal and Vancouver combined. Carney presented the agreement as "what an energy superpower looks like when it decides to act like one", naming the Innu Nation alongside federal and provincial governments as part of the announcement.
