Canada’s energy sector is undergoing a period of profound change, driven by ambitious regulatory reforms, geopolitical volatility, and shifting expectations around diversity and climate. In this Lexpert Special Edition on Energy, we spotlight the country’s top-ranked lawyers and distill their perspectives on the legal, economic, and political forces reshaping the industry. From the fast-tracking of “nation-building” projects to the recalibration of cross-border disclosure, the legal landscape is as dynamic as the energy market itself.
Fast-tracking the future: the One Canadian Economy Act
The federal government’s new One Canadian Economy Act is designed to break through the regulatory bottlenecks that have long delayed major energy and infrastructure projects. By reducing federal approval timelines for projects deemed in the “national interest” from five years to just two, the legislation aims to unlock stalled private capital and boost Canada’s competitiveness.
Sharon Singh, partner at McMillan LLP, captures the urgency behind the Act: “We’re genuinely in a crisis right now,” she says, citing US tariff threats and Canada’s lagging productivity growth as catalysts for action. Yet, the Act’s speed and selectivity have sparked concern among Indigenous communities and environmental advocates, with nine Ontario First Nations already launching a court challenge. Singh points out that “there is distrust around the way this legislation was introduced,” highlighting the need for genuine consultation.
The Act applies only to a select group of “nation-building” projects, and the challenge will be to ensure that this streamlined process does not come at the expense of constitutional obligations. Catherine Doyle, also at McMillan, sees the potential for transformation, noting that if the process is designed strategically, “this speed could become a competitive advantage for Canada, unlocking more investment in this country.”
Lawyers agree that the duty to consult Indigenous communities remains paramount. Martin Ignasiak of Bennett Jones LLP stresses, “Partnerships with Indigenous communities are critical not only for legal compliance but for legitimacy and long-term success.” For Kim Howard of McCarthy Tétrault LLP, the real test will be in how governments, project proponents, and Indigenous communities work together: “You can’t legislate your way out of the duty to consult.”
M&A: navigating uncertainty
Regulatory reform is only one axis of change; dealmaking is another. The threat of US tariffs under President Donald Trump’s second term has cast a shadow over cross-border energy M&A activity, forcing Canadian companies and investors to rethink their strategies. Maxine Ethier of McCarthy Tétrault LLP notes that, despite the uncertainty, “the really good investors are finding the opportunities. They’re tracking the market shifts, spotting value, and moving in where others hesitate.”
Brent Kraus of Bennett Jones LLP observes that M&A requires predictability, and in times of uncertainty, deal volume can drop as buyers hesitate. Yet, he points out that confidence remains among buyers with long-term strategies, and where there’s a fit, “there is a willingness to transact.” Megan Ollivier of Stikeman Elliott LLP sees energy players becoming more selective and strategic, with strong investor appetite in sectors like carbon capture, LNG, and midstream infrastructure.
ESG and DEI: a shifting disclosure landscape
Energy companies are also grappling with divergent regulatory and political pressures on diversity, equity, and inclusion (DEI) and climate risk disclosures. Bill Gilliland of Dentons notes, “In the United States, the federal government is pushing back against DEI initiatives,” which has led Canadian firms to scale back voluntary disclosures out of concern for US regulatory scrutiny.
Radha Curpen of McMillan LLP points out that many Canadian energy companies are now more cautious in their DEI disclosures, balancing transparency with the risk of political backlash. Still, the business case for DEI and ESG remains strong. Sharon Singh of McMillan says, “The fundamental work isn’t necessarily changing. What’s evolving is how companies talk about it – the disclosure needs to emphasize the business case.”
The road ahead
As Canada’s energy sector navigates this era of change, the role of legal counsel has never been more critical. Whether advising on fast-tracked infrastructure, structuring resilient deals, or guiding clients through the evolving ESG landscape, lawyers are helping shape the future of energy in Canada. As Curpen concludes, “If we do our jobs well, we help clients navigate complex environments without abandoning their values – or their competitive edge.”