Ontario will implement new regulations for special economic zones on Jan. 1, 2026, aimed at accelerating approvals for major economic projects while maintaining environmental standards.
The regulation establishes criteria for designating special economic zones, trusted proponents and priority projects under the Special Economic Zones Act, 2025. The government says the zones will cut red tape and speed up job-creating investments considered critical to Ontario’s economic security.
“Special Economic Zones will bolster Ontario’s economic advantage by cutting red tape, accelerating approvals and protecting the jobs and industries that keep our province resilient and competitive,” said Vic Fedeli, minister for economic development, job creation and trade.
Indigenous consultation shaped framework
The province consulted more than 130 Indigenous communities during development of the regulation. Ministers and parliamentary assistants travelled across Ontario to gather feedback on local community needs, infrastructure requirements and nation-building projects.
“Informed by participation and consultation with Indigenous communities, the regulation for Special Economic Zones is providing clarity for communities and industry alike,” said Greg Rickford, minister of Indigenous affairs and First Nations economic reconciliation.
The ministry posted draft criteria to the Environmental Registry of Ontario and Ontario Regulatory Registry on Oct. 2, 2025, for a 45-day public comment period that ended Nov. 16. Feedback from consultations was incorporated into the final regulation.
Mining approvals targeted for streamlining
The legislation was introduced under the Protect Ontario by Unleashing Our Economy Act in response to U.S. tariffs. Mining projects face particular delays under current processes, with overlapping approvals from multiple ministries and levels of government extending timelines to up to 15 years to open a mine in Ontario, according to the government.
The special economic zones framework is designed to streamline these approval processes while maintaining environmental protection standards and the Crown’s duty to consult with Indigenous communities.
Strategic sectors in focus
Ontario’s critical minerals sector will play a key role in the zones, supporting defence, electric vehicle and battery manufacturing, technology, aerospace and advanced manufacturing industries.
Projects designated within special economic zones will be able to launch and progress faster than under standard approval processes. The province will continue consulting with stakeholders and Indigenous communities as it works with partners to designate the first zones.
The government says the measure is part of broader efforts to protect Ontario’s economy by lowering taxes, reducing regulatory duplication and making strategic investments to compete with other jurisdictions.
