Institutional Pathways: Mastering Environmental Assessments and Approvals

Environmental Impact Assessment

Before commencing a project, it is essential to evaluate these initiatives to evaluate their potential environmental effects. The purpose of an Environmental Impact Assessment (EIA) is to gain a comprehensive understanding of the consequences of expediting proposed developments without considering their environmental impacts. An EIA offers a systematic evaluation, detailing these potential impacts so that those involved in the project can identify and implement necessary measures to address and mitigate these effects.

What is Environmental Impact Assessment? 

The Environmental Impact Assessment (EIA) refers to the process of identifying, predicting, and evaluating the potential effects of a proposed project on the environment. A proposed project cannot proceed unless it has undergone this process. Projects requiring an environmental impact assessment include constructing a mine, extending a highway, constructing waterways, developing a liquefied natural gas (LNG) facility, and developing a large new marine terminal. 

These projects are governed by the Canadian Environmental Assessment Act (CEAA), 2012. The Minister will designate the project if it is deemed to cause adverse environmental effects. The assessment will be conducted by any of the following federal agencies: the Canadian Environmental Assessment Agency, the National Energy Board, or the Canadian Nuclear Safety Commission. 

A review panel or impartial experts appointed by the Minister will also support the agency in the evaluation process. When conducting an assessment, the process should be initiated as early as possible to ensure issues are addressed before projects are carried out. 

When assessing the environmental effects of proposed projects, the agency and review panel will consider the cumulative environmental effects, public comments, measures to mitigate effects, the purpose of the designated project, alternative methods for carrying out the project, and any matters related to environmental impact assessment. 

Review Process  

The Environmental Review Process (ERP) has been developed by Indigenous Services Canada (ISC) to ensure compliance with the obligations under the Canadian Environmental Assessment Act, 2012, now superseded by the Impact Assessment Act (IAA). This review process ensures that projects are executed without causing harm to the environment. The role of the IAA is to create a framework for the evaluation of designated projects. By assessing projects prior to their commencement, any identified adverse effects can be mitigated. It is important to note that proposed projects on reserve lands are not considered designated projects and thus do not require a federal impact assessment.

Indigenous Services Canada's Environmental Review Process Indigenous Services Canada's Environmental Review Process
Source: https://www.sac-isc.gc.ca/eng/1684351576386/1684351616892

In conducting evaluations, the ERP serves as a tool for identifying mitigation measures to reduce the environmental effects of proposed projects. Projects with low environmental risk do not need to undergo the same level of review as those that are complex and have higher environmental risks. The review process through ERP involves five steps: 

Step 1: Determine if the Environmental Review Process is Required  

In this step, the proposed project is assessed to determine if it is a designated project. The evaluation is based on CEAA 2012 Regulations Designating Physical Activities. 

Step 2: Analyse the Level of Environmental Review  

If the ERP applies, the ISC regional environment officer must post a Notice of Intent on the registry to encourage the public to leave comments about the project determination. Under sections 84 and 86 of the IAA, public participation is required, but it is up to the IAA to require ISC to do more. 

After posting the notice on the registry, the public is invited to leave comments for a period of at least 30 days. If more information about the project is required, ISC will contact the project's proponent. 

Step 3: Analyse the Designated Project's Environmental Effects  

Section 81 of the IAA defines environmental effects as "changes to the environment and the impact of these changes on the Indigenous peoples of Canada and on health, social or economic conditions." 

After completing the form, each identified adverse effect needs a corresponding mitigation measure aimed at minimising or eliminating the impact of environmental effects. Mitigation can be achieved through various means such as project design revision or adding features that can reverse environmental effects. 

Step 4: Review Additional Factors  

When reviewing proposed projects, ISC will consider Indigenous rights, Indigenous knowledge, community knowledge, public comments, and mitigation measures. 

Step 5: Decision  

After the environmental review, the review panel will make a decision based on the project's merits. If the review indicates that the project is unlikely to have an adverse effect on the environment, ISC will proceed with the approval of funding and regulatory authorisation. 

UNDRIP and Environmental Law  

The Truth and Reconciliation Commission of Canada calls upon all levels of government to endorse and implement the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP), upholding three key principles: 

  • Free, Prior and Informed Consent 
  • Self-Determination, emphasising the right to political self-determination and the right to freely dispose of the natural resources of Indigenous peoples 
  • Recognition of the Collective Nature of Indigenous Rights 

UNDRIP is intrinsically linked to environmental protection because safeguarding the environment is crucial for preserving the health, culture, and heritage of Indigenous peoples. UNDRIP encompasses the protection of Indigenous peoples' rights to their lands, resources, and territories, thereby highlighting the necessity of environmental stewardship to preserve the Indigenous peoples' well-being, dignity and survival. 

UNDRIP and Environmental LawThunderbird House Post Totem Pole in Stanley Park
Source: https://georgiastrait.org/2022/06/undrip-the-environmental-movement/#:~:text=UNDRIP%20affirms%20the%20right%20of,%2C%20dignity%20and%20well%2Dbeing.

Federal Environmental Assessment 

The Canadian Environmental Assessment Act (CEAA) was enacted into law in July 2012, replacing the Project Screening Assessments required under the previous CEAA act. One of the key changes introduced by CEAA 2012 is the stipulation that the final environmental assessment decision must be made within 365 days from the commencement of the assessment. All environmental assessments are open to public participation and must include mandatory follow-up programmes. 

For projects on federal lands that are not deemed designated projects, CEAA 2012 mandates federal authorities to assess whether a project will have a negative impact on the environment before any decision can be made. This ensures thorough scrutiny and accountability, reinforcing the commitment to environmental protection and public involvement in the assessment process. 

Promoting Economic Sustainability Through Environmental Assessment  

EIA ensures project clarity and certainty. With a clear process in place, no project can bypass or fast-track planning without undergoing thorough assessment. As numerous projects continue to contribute to Canada's economic growth, it is imperative not to overlook Indigenous rights.

The Canadian Indigenous Investment Summit acknowledges that for projects to progress, there must be profound respect for the environment, culture, heritage, and Indigenous peoples. This summit recognises that sustainable development hinges on honouring these critical aspects, ensuring that economic advancement does not come at the expense of Indigenous communities and their invaluable contributions.


Want to know more about how environmental assessments can support sustainable development and economic growth? Tune into our podcast "Drumbeats" for engaging discussions on this topic. Stay informed and inspired—subscribe to our newsletter for the latest updates. Connect with the visionary investors and business leaders who have shared their knowledge and expertise and learn how these investments are driving promising returns. Secure your spot at the Canadian Indigenous Investment Summit.

Back to Blog