Understanding Bill C-5 and Its Impact on Indigenous Communities

Bill C-5, officially “An Act to enact the Free Trade and Labour Mobility in Canada Act and the Building Canada Act,” is a piece of federal legislation recently approved in Parliament that aims to streamline economic development and infrastructure projects in Canada.

The bill promises to reduce red tape and accelerate infrastructure development; however, many Indigenous leaders and advocacy groups have raised concerns about the bill’s potential to undermine Indigenous rights and sovereignty.

The bill is divided into two distinct components. The first part introduces the Free Trade and Labour Mobility in Canada Act, which seeks to harmonize occupational licensing requirements across provinces and territories. The goal is to allow professionals and skilled tradespeople to move more easily between jurisdictions without having to retrain or recertify.

Proponents argue this will help address labour shortages and improve economic mobility across the country, which is crucial for revitalizing the economy from its long-term stagnation.

The second and more controversial part is the Building Canada Act. This section creates a framework for identifying and fast-tracking “projects of national interest,” particularly in energy, transportation, and critical infrastructure. It proposes to simplify the permitting process for these projects by reducing regulatory barriers and timelines, in hopes of accelerating investments and construction activity.

However, Indigenous communities across Canada have expressed serious concerns about how this new framework could affect their rights and jurisdiction over their lands. Critics argue that Bill C-5 weakens key environmental and consultation safeguards by centralizing decision-making authority within the federal government.

The fast-tracking of major projects, especially those involving resource extraction or large-scale infrastructure, could bypass Indigenous consultation processes or diminish their influence in environmental assessments.

Many Indigenous leaders view the bill as a step backward in the ongoing journey toward reconciliation. The Assembly of First Nations, along with several regional Indigenous organizations, have voiced concerns that Bill C-5 risks violating the principles of the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP), which Canada committed to implementing through Bill C-15 in 2021.

In particular, they point to the principle of free, prior, and informed consent, which may be undermined if projects proceed without meaningful consultation or accommodation.

"If Canada is serious about economic reconciliation, we must move from consultation to consent—mining and resource development must happen with Indigenous communities, not to them. Consent isn't a hurdle to be managed, it's the foundation for stronger projects, deeper partnerships, and lasting prosperity," states Renee Greyeyes, President and CEO, Indigenous Chamber of Commerce.

In response to mounting criticism, Prime Minister Mark Carney has acknowledged the need for greater inclusion of Indigenous voices in the development and implementation of the bill. He has promised that Indigenous leadership will be actively involved in discussions around infrastructure projects that directly impact their territories.

While this is a positive step, many Indigenous advocates are calling for concrete amendments to the bill itself; ensuring that consultation and consent are not just promises but legally binding obligations.

As Bill C-5 moves through the legislative process, Indigenous communities and their allies will be watching closely. The outcome will not only shape Canada’s infrastructure future but also serve as a litmus test for the federal government’s commitment to reconciliation and respect for Indigenous sovereignty.