Public gets a say on Ontario plan for Special Economic Zones
By: Abdul Matin Sarfraz, Canada’s National Observer, Local Journalism Initiative
This article was originally published by Abdul Matin Sarfraz, a Local Journalism Initiative Reporter with Canada’s National Observer, on Oct 06, 2025, at 07:58.
For the first time since passing its contentious Bill 5, the Ford government is proposing rules for how Special Economic Zones will work and asking for public comment.
The move comes after months of pushback from municipalities, experts, First Nations and advocates who warned the law is one of the most sweeping environmental rollbacks in Ontario’s history, sidelining science, public input and Indigenous rights.
Under Bill 5, which is widely seen as favouring developers and extractive industries, Special Economic Zones gave the government sweeping powers to override provincial laws, environmental assessments and consultations to fast-track major projects.
In its draft framework posted Thursday, the government says the criteria are meant to ensure Special Economic Zones “advance important economic activities while meeting high standards for operation, safety and the environment.” It also says creating a new zone should be limited to “narrow circumstances when it is of the utmost importance to Ontario’s economy and security.”
The government added that “by default, all laws apply in a special economic zone.” But it left room for exceptions, noting exemptions or modifications to provincial laws could still be granted on a case-by-case basis through future regulations. This means cabinet would keep broad discretion over how the zones operate.
According to the proposed draft, several criteria would be used to designate Special Economic Zones.
Zones must be a defined geographic area where economic activities are considered “strategically important” to Ontario. Projects must demonstrate long-term economic benefits, use Ontario goods and services, and include plans to reduce health and environmental impacts. So-called “trusted proponents” must show a strong record on compliance, safety and environmental protection. If Indigenous engagement is required, they must also provide a plan and include staff with experience working with Indigenous communities.
The move comes after months of pushback from municipalities, experts, First Nations and advocates who warned the law is one of the most sweeping environmental rollbacks in Ontario’s history, sidelining science, public input and Indigenous rights.
The draft states exemptions from laws would only apply if all three elements — zone, project and proponent — are in place.
The province says the draft regulation was shaped by consultations with Indigenous communities.
In a statement, the province’s Economic Development Minister Vic Fedeli said the government views Special Economic Zones as a tool to strengthen Ontario’s economic resilience at a time of global uncertainty. “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,” he said.
Critics say flaws remain
Advocates argue the proposal still leaves sweeping powers in the hands of cabinet and does little to fix what they see as a deeply flawed law.
“This regulation is still very permissive in terms of what the minister can do,” said Tim Gray, executive director of Environmental Defence. “They can still override any named legislation, pick any company they want as a proponent and designate any area of the province as a Special Economic Zone. There’s very little clarity or constraint.”
Gray told Canada’s National Observer the proposal also lacks transparency. “The minister issues a regulation, but how do we know what it’s based on? Did the project actually mitigate environmental and public health harms? We have no way of knowing.”
He added Ontario doesn’t need to override environmental laws to build projects. “The idea that we need this legislation to get things built is ridiculous,” he said.
Gray warned the law is already being challenged in court and predicted more backlash if the government uses it to exempt large projects.
The proposed criteria are open for public comment until Nov. 16. The province says feedback will be used to refine the regulation before it is finalized.
Gray said the government should scrap the framework altogether. “If they want to attract investment, they should set clear rules, not create a discretionary system that undermines trust and invites lawsuits,” he said.
In a statement, Ontario Green Party Leader Mike Schreiner says the Ford government’s draft criteria for Special Economic Zones are “deliberately vague” and fail to offer real protections.
He argues the criteria do not safeguard the environment, uphold Indigenous rights or provide democratic oversight. “They’re crafted to look like safeguards, but in reality, they do nothing to prevent backroom deals and giveaways to well-connected insiders, now rebranded as ‘trusted proponents,’” he said.
Schreiner also criticized the government for scrapping science-based laws and replacing them with broad definitions of what counts as “economically important” or “socially beneficial.” He warned that this approach gives the premier “free rein to create lawless zones for unchecked development.”
The Green Party is calling for Bill 5 to be reversed and for meaningful consultation with First Nations before any projects move forward on their lands.
Follow the Field & Shutter Press
Instagram | YouTube | BlueSky
Have a tip, story idea, event, or want to appear as a guest column? Contact us.
Oh yeah, like we are going to trust this government? The Greenbelt, the Ontario Science Centre, the Skills Development Fund, the 413....nothing about Ford's government suggests it's trustworthy!