Special Economic Zones Act, 2025

The ministry received 1127 comments in total for this posting, including 1063 ERO comments and 64 email comments, from individuals, municipal stakeholders, Indigenous communities, environmental associations and advocacy groups, and professional industry associations and stakeholders. The ministry also received more than 10,000 additional templated email comments. All feedback received during the comment period for this posting was considered, including feedback related to this proposal that was sent to partner ministry ERO posts. 

Feedback focused on three major themes:

1. Democratic Participation and Indigenous Rights 

   Commenters expressed concerns over how the proposal appears to provide an overarching amount of discretion to the province, how decision-making seems to be unilateral, and how the proposal lacks democratic participation. Commenters felt that the proposal may infringe on the decision-making authority of municipalities and the rights of Indigenous peoples (including the duty to consult and, where appropriate, accommodate) and the principle of free, prior, and informed consent. Feedback also recognized the importance of getting input from a variety of experts, communities, residents, and municipalities. Lastly, commenters felt the consultation period was not long enough, and some commenters requested an extension for the comment period.

   Consultation is already occurring with Indigenous communities on the regulatory proposal to set the overarching criteria for zones, projects, and proponents. Where it arises, Ontario is committed to fulfilling its duty to consult, and, where appropriate, accommodate, when prescribing criteria for zones, projects, and proponents, when designating zones, projects and/or proponents, and when making modification or exemption regulations.

2. Safeguarding the Environment and People

   Concerns were expressed about the potential loss of ecosystems, biodiversity, and the threat to public health and private property. Commenters emphasized that climate commitments are essential for future generations and economic development should not come at the cost of environmental or human well-being. Some commenters provided suggestions on maintaining safety standards (related to worker protections, labour laws, workplace safety), environmental protections (such as those within the Clean Water Act, 2006), and areas where zone designation should be avoided (such as in wetlands and environmentally sensitive areas). Some commenters also suggested using zones to support green innovation and sustainability, including, renewable energy projects, clean-tech startups, and environmental research hubs. 

   The ministry acknowledges the importance of maintaining a balance between economic growth and regulatory responsibility and will consider the feedback and suggestions in the development of regulatory proposal(s) under this Act. 

3. Transparency and Oversight

   Commentors expressed concerns related to insufficient details in the proposal, and lack of clarity regarding the definitions, criteria, and processes for designating zones, proponents, and projects. Some felt it was not clear how the proposal would support and protect Ontario, with concerns related to transparency in designation and oversight. Additionally, some suggested that exemptions and streamlining should occur more broadly, rather than just in zones.

   The ministry appreciates the feedback in ensuring transparency for all Ontarians. For this reason, the legislation is broad, open, and inclusive, with more details to follow in future regulatory proposals related to criteria, and designating zones, projects and/or proponents. The ministry intends to provide the opportunity for additional feedback through consultation on the draft proposedcriteria regulation under this Act and ongoing consultation with Indigenous communities. 

Some feedback from municipalities, industry associations and sector stakeholders highlighted the potential positive impacts of special economic zones, including supporting job creation and efficiency, incentivizing investment, and increasing economic competitiveness. These comments also emphasized the importance of collaboration with Indigenous communities, municipalities, industries, agencies, and other stakeholders, while keeping environmental protection, and community safety at the forefront.

Next Steps

This is a critical time for Ontario, and the ministry is taking all the necessary steps to protect our economy, workers, and industries without compromising safety, environmental or social standards. No further edits were made to the Act from the feedback received. The ministry will consider the feedback received in the development of regulatory proposal(s) under the Act

The ministry posted a proposal notice which includes the draft proposed criteria on designating projects and proponents, and the draft proposed regulation informed by feedback received from Indigenous communities. It is available for comment from October 2, 2025, to November 16, 2025, and can be found here: Consultation on Proposed Special Economic Zones Criteria | Environmental Registry of Ontario.

Further consultation, including consultation with Indigenous communities, will take place, as applicable, prior to the establishment of regulations designating specific projects, proponents or zones under the Act.