There is no requirement to post this notice on the Environmental Registry of Ontario, but we wanted to hear your thoughts. Thank you for your feedback.
This consultation was open from:
October 2, 2025
to November 16, 2025
Decision summary
On December 16, 2025, O. Reg. 373/25: Criteria For Designations was filed under the Special Economic Zones Act, 2025, outlining the criteria that must be met for designating zones, projects and trusted proponents. This came into effect January 1, 2026.
Decision details
Criteria Regulation
On December 16, 2025, Ontario Regulation 373/25 (“Criteria Regulation”) was filed under the Special Economic Zones Act, 2025 (“the Act”), and came into effect January 1, 2026. This regulation provides the criteria that must be met for designating zones, projects and trusted proponents. This establishes the framework to operationalize the Act by providing clear standards in place for the designation of zones, projects and trusted proponents. This ensures balance in supporting the economy while maintaining necessary standards and safeguards for health, safety, communities, and the environment.
The Criteria Regulation was informed through consultations with Indigenous communities, and engagement with the public via the Environmental Registry of Ontario (ERO) and Ontario Regulatory Registry (ORR).
Context on the Special Economic Zones Act, 2025
On June 5, 2025, the Protect Ontario by Unleashing our Economy Act, 2025 received Royal Assent. To respond to U.S. trade actions targeting Canada, the Protect Ontario by Unleashing our Economy Act, 2025 enacted the Special Economic Zones Act, 2025 (the “Act”) to support economic growth and development by building faster and more strategically to protect Ontario industries. By unlocking new opportunities for long-term investment, the province will drive economic growth, diversify trade, and strengthen supply chains in the short and long term.
The Act and the regulations made under it will allow for the advancement of critical, strategic and priority work while maintaining necessary safeguards and obligations, protecting Ontario’s industries. The Act and the regulations made under it will also help support the long-term prosperity, security, and competitiveness of the economy by creating new jobs, increasing efficiency, and incentivizing investment at a time of global economic instability.
By default, all laws apply in a special economic zone. Any modifications or exemptions to laws with respect to projects or trusted proponents within special economic zones will be made on a case-by-case basis through future regulations.
Duty to Consult
Where it arises, Ontario is committed to fulfilling its duty to consult, and, where appropriate, accommodate in relation to any proposal for regulations to designate a special economic zone, trusted proponent, or project; or proposals to grant any modifications or exemptions to laws with respect to projects or trusted proponents in designated zones. The province may also seek further feedback, as applicable, through public consultation prior to the establishment of such regulations.
Effects of consultation
The ministry received 512 comments in total for this posting, including 349 ERO comments and 163 email comments, from individuals, municipal stakeholders, Indigenous communities, environmental associations and advocacy groups, and professional industry associations and stakeholders. All feedback received through this posting during the comment period were considered.
ERO feedback focused on four major themes:
Environmental Considerations
Commenters noted the potential for environmental impacts, mainly citing potential risks to air and water quality, biodiversity, and areas of cultural significance. Feedback also reflected interest in how economic benefits should be considered alongside factors such as public health, the protection of sensitive lands/ecosystems, and climate commitments.
Impacts on Indigenous Peoples
Commenters expressed the importance of consultation with Indigenous communities, and concerns with how the proposal could potentially infringe on Aboriginal and Treaty rights, recognized under section 35 of the Constitution Act, 1982, and undermine the recognition of United Nations Declaration on the Rights of Indigenous People (UNDRIP) principles such as Free, Prior and Informed Consent (FPIC). There was also feedback related to establishing co-governance structures and revenue-sharing agreements and providing more clarity on how Indigenous-led projects would be supported.
Democratic Rights
Commenters felt the proposal provided an excess of discretionary power to the government, which could reduce transparency and accountability. Comments emphasized the importance of public oversight, and cited recommendations related to developing an appeals process, publishing decision rationales, creating advisory bodies, and ensuring opportunities for public input.
Feedback on Regulatory Design
Several comments provided specific feedback on the regulatory design, including ensuring the criteria are clearly defined, measurable and include limits on exemptions. For example, there were suggestions related to time-bound designations, mandatory environmental and cultural studies, and prioritizing community benefits. There were mixed views on operational aspects like the sequencing of designations for zones, projects and trusted proponents, proponent eligibility, and alignment with other planning tools, but all feedback was grounded on the importance of transparency and ensuring adequate safeguards are in place.
The regulation incorporates changes made in response to some of the feedback received from all consultations. This includes, but is not limited to:
- Inclusion of analysis of potential environmental and health impacts and risk mitigation under project criteria.
- Inclusion of an approach to confirming a proponent’s contractors have a good record of complying with legal requirements in the proponent criteria.
- Proponent criteria that state there will be no change of control without the consent of the Minister.
- Proponent criteria that require, where applicable, that the Minister be of the opinion that the proponent has a plan for engaging and working with Indigenous communities and that the Minister is satisfied that the individuals working on the proponent’s project will include individuals with a history of working successfully with Indigenous communities on projects in Canada.
- Language added specifying that a trusted proponent must be linked to a designated project or a project that the Minister is designating.
- Language added that restricts the size of a zone to the size necessary to carry out the economic activities within it.
- Language added to the regulation that enables Indigenous governing bodies to be automatically eligible for designation as trusted proponents (through either a corporation that is wholly owned by Indigenous governing bodies or, if it is a corporation without share capital, all the members of the corporation are Indigenous governing bodies).
Some feedback was not reflected in the regulation for the following reasons:
- MEDJCT consultation discussions and feedback from Indigenous communities emphasized the importance of explicitly including references to Aboriginal and Treaty rights, as well as references to UNDRIP and FPIC in the regulation. While these references were not included, Ontario remains committed to acting in a manner consistent with its obligations under section 35 of the Constitution Act, 1982.
- Some feedback went beyond the scope of the policy intent and was noted as being best addressed through other avenues (e.g. through implementation and/or future regulatory proposals to designate zones, projects and trusted proponents) and/or was already captured broadly in the proposed criteria.
Final Analysis of Regulatory Impact
There are no direct costs for regulated entities associated with this regulatory proposal at this time as the regulation is enabling in nature. Proposals for designation would be required to demonstrate how they meet the criteria, but meeting the criteria does not guarantee designation.
The intent of the Criteria Regulation is to establish criteria that must be met to designate zones, projects, and trusted proponents. The regulation supports transparency and consistency in the designation process and helps ensure that necessary safeguards are in place to protect health, safety, and the environment.
Next Steps
Ontario is proceeding with the Criteria Regulation, which came into force on January 1, 2026.
Where it arises, Ontario is committed to fulfilling its duty to consult, and, where appropriate, accommodate in relation to any proposal for regulations to designate a special economic zone, trusted proponent, or project; or proposals to grant any modifications or exemptions to laws with respect to projects or trusted proponents in designated zones.
The feedback received through this process will continue to be taken into consideration as Ontario continues to implement the Act.
Supporting materials
View materials in person
Some supporting materials may not be available online. If this is the case, you can request to view the materials in person.
Get in touch with the office listed below to find out if materials are available.
Connect with us
Contact
SpecialEconomicZones@Ontario.ca
Original proposal
Why consultation isn't required
The Environmental Bill of Rights (EBR) prescribes ministerial responsibilities and provides a bill of rights to the people of Ontario, enabling them to participate in environmental decision-making and promote transparency and accountability, and public participation in decisions with potential environmental impacts. Ontario Regulation 73/94 (O. Reg. 73/94) under the EBR lists ministries and Acts that are subject to the different parts of EBR.
As a prescribed ministry under the EBR, MEDJCT is required to post proposals and decisions on Acts and policies that might impact the environment on the ERO. However, MEDJCT is not currently required to post any regulatory proposal(s) under the Special Economic Zones Act, 2025on the ERO as it’s not prescribed in O. Reg. 73/94.
Proposal details
Background and Context
On June 5, the Protect Ontario by Unleashing our Economy Act, 2025 received Royal Assent. To respond to recent U.S. trade actions targeting Canada, the Protect Ontario by Unleashing our Economy Act, 2025 enacted the Special Economic Zones Act, 2025(the “Act”) to support economic growth and development by building faster and more strategically to protect Ontario industries. By unlocking new opportunities for long-term investment, the province will drive economic growth, diversify trade, and strengthen supply chains in the short and long term. This is a critical time for Ontario that requires action to protect and defend workers and the economy.
The Act and the regulations made under it will allow for the advancement of critical, strategic and priority work while maintaining necessary safeguards and obligations, protecting Ontario’s industries, and mitigating the impact of trade disruptions. The Act and the regulations made under it will also help ensure the long-term prosperity, security, and competitiveness of the economy by creating new jobs, increasing efficiency, and incentivizing investment at a time of global economic instability.
By default, all laws apply in a special economic zone. Any modifications or exemptions to provincial laws within special economic zones will be made on a case-by-case basis through future regulations.
The Act is structured to include controls through regulation(s) that will ensure responsible decision-making in relation to decisions regarding social, environmental and safety standards. For example, designating a new zone under this Act, and prescribing criteria for zones, designated projects and trusted proponents would be done through a Lieutenant Governor in Council (LGIC) regulation.
Where it arises, Ontario is committed to fulfilling its duty to consult, and, where appropriate, accommodate in relation to any proposal to designate a special economic zone, designated project or trusted proponent; or proposals to grant any modifications or exemptions to provincial laws with respect to projects or proponents in designated zones. The province may also seek further feedback, as applicable, through public consultation prior to the establishment of regulations.
Summary of Feedback To-Date
The Ministry previously sought feedback on the Act through the Environmental Registry of Ontario from April 17 to May 17 and received over 1,100 comments with feedback focused on three major themes:
- Democratic Participation and Indigenous Rights,
- Safeguarding the Environment and People, and
- Transparency and Oversight.
Overall, the feedback expressed the importance of working collaboratively with Indigenous communities and municipalities to provide an opportunity for them to voice their feedback for any future regulatory proposal(s) and ensure there are mechanisms and safeguards in place for the environment, health, safety, and communities. The Ministry is considering feedback received in the development of regulatory proposal(s) under the Act.
Additionally, the Ministry has been seeking feedback on this regulatory proposal through ongoing consultations with Indigenous communities. Please see “Indigenous Communities Consultation Feedback” for more information on the feedback the Ministry has received and is considering from Indigenous communities on the criteria for designating zones, projects and proponents.
Proposed Regulatory Framework
Through this Notice, the Ministry is seeking to consult the public on the regulatory framework under the Act for the criteria to designate zones, projects, and proponents. The criteria being proposed as part of this consultation must be established through an LGIC regulation. The regulation would, if made, aim to support economic development while helping to ensure safeguards are in place to protect the environment and health in a manner that is consistent with the protection of the rights of Indigenous Peoples.
The Ministry has attached the following materials:
Draft Policy Intent for SEZ Criteria and Guiding Questions
This is the draft policy intent shared with Indigenous communities at the start of Indigenous consultation describing the proposed criteria to designate zones, projects, and proponents, and specific guiding questions. Feedback received on the draft policy intent during Indigenous consultations has informed the development of the draft proposed regulation. As such, the ministry invites comments on the draft regulation as it is the latest version of materials.
Indigenous Communities Consultation Feedback
This attachment summarizes the feedback the Ministry has received to date from Indigenous communities on the policy intent for the proposed criteria to designate zones, projects and proponents. Feedback from Indigenous communities is still being considered by the ministries, and further feedback continues to be received.
SEZ Draft Regulation (Designation Criteria)
This is a draft of the proposed special economic zones criteria regulation that incorporates the feedback received from Indigenous communities on the policy intent (see above). The draft regulations are being provided as part of an ongoing consultation process to assist the public and Indigenous communities to understand and provide informed comments on the proposals as they exist to date.
The Ministry invites feedback on the draft proposed regulation which will be considered by the Ministry prior to finalizing the proposal. The draft proposed regulation may continue to evolve as the Ministry consults with, and reviews and considers feedback from, Indigenous communities and the public.
Analysis of Regulatory Impact
The Ministry is still in the process of consulting on the proposed regulatory criteria under the Special Economic Zones Act, 2025, and the proposed regulation may continue to evolve as the Ministry considers feedback. The intention of the proposed regulatory framework is to establish criteria that must be met to designate zones, projects, and proponents. The regulation, if made, would support transparency and consistency in the designation process and help ensure the necessary safeguards are in place to protect health, safety, and the environment.
As this regulatory proposal is to establish a framework on the criteria for designating zones, projects and proponents, there are no direct costs to regulated entities at this time. While proponents may be required to provide documentation of how they meet the criteria, once established, the processes for doing so are still to be determined, and any subsequent regulatory burden or impact will be assessed at that time. The Ministry will continue to assess regulatory impacts associated with this proposal.
Supporting materials
View materials in person
Some supporting materials may not be available online. If this is the case, you can request to view the materials in person.
Get in touch with the office listed below to find out if materials are available.
Comment
Commenting is now closed.
This consultation was open from October 2, 2025
to November 16, 2025
Comments received
Through the registry
349By email
163By mail
0