Ontario Releases Draft Criteria for Special Economic Zones

Part of government’s plan to build a more competitive, resilient and self-reliant economy, Special Economic Zones will significantly speed up approvals for major projects

 As part of the government’s plan to protect Ontario and unleash its economic potential, the province has proposed a new regulation setting out draft criteria for designating Special Economic Zones to build a more competitive, resilient and self-reliant economy. This draft regulation has been informed by consultations with Indigenous communities across Ontario. It is being released today to support ongoing consultations and will continue to evolve based on feedback from Indigenous communities and stakeholders.

“In the face of global economic uncertainty, our government has a mandate from the people to build the most competitive economy in the G7,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “Special Economic Zones are a critical tool to expedite approvals and move projects of strategic importance forward faster, boosting our economic resilience and delivering lasting prosperity for Ontario workers and businesses.”

First introduced under the Protect Ontario by Unleashing Our Economy Act in response to U.S. tariffs, the Special Economic Zones Act supports the advancement of job-creating investments and projects that hold critical and strategic importance to Ontario’s economic security. Special Economic Zones provide a predictable and stable environment for investment and growth, allowing projects to start and move forward faster while maintaining the province’s stringent standards and safeguards for environmental protection, as well as the duty to consult with Indigenous communities.

“We look forward to continuing consultations with Indigenous communities and organizations on proposed changes to the Ontario Heritage Act (OHA),” said Graham McGregor, Minister of Citizenship and Multiculturalism. “Feedback on the OHA archaeology exemption criteria will help protect important archaeological sites while providing the clarity needed to attract investment, protect good-paying jobs, and strengthen Ontario’s economy by making Ontario the fastest permitting jurisdiction in North America.”

As part of its consultations, Ontario has engaged with over 130 Indigenous communities regarding the proposed draft regulation and the development of a new regulatory framework, including:

• Five regional sessions, with virtual participation options, carried out across the province, including two sessions in Toronto, and one each in Thunder Bay, Sudbury and London.
• One-on-one consultation sessions with communities, as requested, which remain ongoing.
• Ministers and Parliamentary Assistants from across the provincial government travelled north to engage with Indigenous communities since the passage of the Protect Ontario by Unleashing Our Economy Act. These engagements focused on local community needs and nation-building projects, including the development of regulations for Special Economic Zones.

“Our government continues to facilitate hearty political participation and engagement with Indigenous communities across the province, with increasingly positive feedback, as we build out the regulations for Special Economic Zones,” said Greg Rickford, Minister of Indigenous Affairs and First Nations Economic Reconciliation and Minister Responsible for Ring of Fire Economic and Community Partnerships. “We are steadfast in our commitment to the duty to consult on the implementation of future use of Special Economic Zones, and in working in partnerships with communities and leadership to ensure that new projects support First Nations-led economic development and prosperity.”

The province will continue to consult with Indigenous communities in Ontario to support and advance economic reconciliation through development and ensure the draft proposed regulation incorporates ongoing feedback.

Quick Facts

• The proposed new regulation has been posted to the Environmental Registry of Ontario.
• The government is also investing $3.1 billion in loans, grants and scholarships that would support Indigenous participation, partnership and ownership in Ontario’s critical mineral supply chain.
• The Special Economic Zones Act, 2025 is meant to quickly advance strategically important economic activity and priority projects within designated zones. By building faster and more strategically, Ontario can protect its industries, mitigate the impact of trade disruptions, and ensure the long-term prosperity and security of the economy.
• The Protect Ontario by Unleashing Our Economy Act also established a new tool to enable archaeology exemptions under the Ontario Heritage Act to expedite economically significant projects. The Ministry of Citizenship and Multiculturalism is currently consulting on proposed criteria to implement these exemptions.
• The Ministry of Indigenous Affairs and First Nations Economic Reconciliation supports consultation, engagement and support offered through the New Relationship Fund.