Ontario’s Special Economic Zones: A blank cheque for environmental harm

Press Release

Ontario / Traditional territories of the Williams Treaties First Nations, Huron-Wendat, Anishnaabeg, Haudenosaunee, Chippewas, and the Mississaugas of the Credit First Nation — Ecojustice is sounding the alarm: Ontario’s recently enacted Special Economic Zones Act (SEZs), 2025, (Bill 5: Protect Ontario by Unleashing Our Economy Act) grants the provincial government sweeping powers to override environmental protections, exempt hand-picked companies from laws, and silence public and Indigenous voices.

A newly tabled draft regulation under the Special Economic Zones Act, 2025 does nothing to alleviate concerns about transparency, accountability, and environmental protection. The government sees Special Economic Zones as an ‘economic growth tool’. In reality, they are a blank cheque for deregulation. The proposed regulatory framework contains no meaningful safeguards.  It hands the Cabinet the power to exempt projects from laws with little scrutiny, as long as doing so is good for Ontario “in the opinion of the Minister”.

Draft regulations were a chance to place meaningful limits on the sweeping powers granted to Cabinet under the Act. Instead, the proposed regulation underscores the concentration of power in the Minister’s hands:

• SEZs can be declared almost anywhere in Ontario based on Cabinet’s opinion that a region is “economically significant or strategically important” and “no larger than necessary”.

• “Trusted proponents” are handpicked by the Minister with no independent checks. Whether they have a good record on environmental compliance is entirely “in the opinion of the Minister”.

• Designated projects within SEZs are only required to consider health and environmental risks. The Minister simply needs to be “of the opinion” that mitigation strategies have been identified — there is no requirement to consider their effectiveness.

• There is no mechanism to affirm Indigenous rights or consultation requirements, despite the government acknowledging that it heard feedback from Indigenous communities that emphasized their importance.

This means SEZs can be fast-tracked with little to no public review, environmental assessment, or enforceable protections. Projects within them can be exempted from laws and regulations that would otherwise apply, including with respect to the environment, health, and safety. This framework leaves Ontario’s air, land, and water at the mercy of political discretion, not law.

“The Special Economic Zones Act is premised on the false idea that environmental laws and regulations impede economic growth. The proposed regulation makes clear the Ford government’s plan is to let its Ministers decide which companies it will favour for exemptions from laws designed to protect Ontario’s environment and keep its residents safe and healthy. This might be good for a few, hand-picked “trusted proponents”, but it is bad for Ontarians,” said Lindsay Beck, Staff Lawyer at Ecojustice.”

Ecojustice stands in solidarity with Indigenous Nations and communities across Ontario who are defending their lands, waters, and rights.  We will keep fighting for a just, sustainable, and democratic Ontario — not one where corporate interest calls the shots.

Media Contacts

Shayoni Mehta, communications strategist | Ecojustice
604-685-5618 ext. 249, smehta@ecojustice.ca

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