The Ontario government says a new regulation establishing criteria for Special Economic Zones will come into effect on Jan. 1, 2026, as part of its plan to protect the province’s economy and accelerate job-creating projects.
The regulation, developed following consultations with Indigenous communities and stakeholders across Ontario, sets out criteria to designate Special Economic Zones, trusted proponents and projects considered strategically important to Ontario’s economic security. The province says the framework will significantly speed up approvals for major projects while maintaining environmental protections and fulfilling the Crown’s duty to consult.
“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. “At a time of economic uncertainty, this new regulation will serve as a critical tool to accelerate major nation-building projects and secure job creating investments that deliver lasting prosperity for our workers.”
First introduced under the Protect Ontario by Unleashing Our Economy Act in response to U.S. tariffs, the Special Economic Zones Act, 2025 is intended to provide a predictable and stable environment for investment and growth. The government says designated projects within these zones will be able to launch and progress more quickly, while still meeting Ontario’s standards for environmental protection. The province noted it will continue consultations with stakeholders and Indigenous communities as it works toward designating the first Special Economic Zones.
“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 and Minister Responsible for Ring of Fire Economic and Community Partnerships. “As an important tool for communities to unlock First Nations-led economic prosperity, we look forward to continued partnership through the designations of future SEZs.”
Ontario says more than 130 Indigenous communities were engaged during the consultation process to provide feedback on the criteria and regulatory framework. Ministers and parliamentary assistants also travelled throughout the province to meet with communities following the passage of the Protect Ontario by Unleashing Our Economy Act, with discussions focused on local needs, infrastructure and nation-building projects. Draft regulations were also posted to the Environmental Registry of Ontario and the Ontario Regulatory Registry for public comment in the fall.
The government says the new regulation is part of broader efforts to protect workers and businesses amid the impact of U.S. tariffs by lowering taxes, reducing red tape and making strategic investments. By streamlining approval processes while maintaining environmental standards, Ontario aims to strengthen key industries and position the province as one of the most competitive places in the G7 to invest, create jobs and do business.
