As Canada accelerates its nation-building infrastructure agenda, a new KPMG report reveals growing concern among business leaders. While enthusiasm for major infrastructure projects remains high, many executives warn that insufficient Indigenous consultation could cause major legal and financial setbacks.
1. Overview of the KPMG Survey
KPMG in Canada conducted a survey of 501 business owners and executives between September 11 and October 2, aiming to capture attitudes toward national infrastructure priorities and Indigenous consultation practices.
Nearly all respondents supported Ottawa’s push for nation-building projects, but 84% expressed concern that failing to meaningfully engage Indigenous communities could result in delays or legal challenges.
2. The Rising Importance of Indigenous Consultation
The survey results emphasize a clear message: early, transparent, and respectful engagement with Indigenous communities is non-negotiable.
Leaders understand that consultation isn’t just a regulatory requirement—it’s essential for long-term success and community trust.
“If consultation becomes a box-checking exercise instead of genuine dialogue, it could damage trust and spark opposition,”
said Zach Parston, Partner and National Infrastructure Leader at KPMG.
3. What Business Leaders Want Prioritized
When asked which categories of projects should be prioritized by the government, responses showed broad interest across sectors:
| Project Category | Percentage of Respondents |
|---|---|
| Energy | 25% |
| Artificial Intelligence (AI) | 22% |
| Transportation | 18% |
| Ports and Logistics | 5% |
| “All of the Above” | 30% |
This balance reflects a national appetite for both traditional and emerging industries that drive growth and sustainability.
4. Energy, AI, and Transportation Lead the List
Energy and artificial intelligence emerged as top priorities, signaling Canada’s ambition to remain competitive in both clean energy and digital innovation.
Highlighted projects include:
- Two West Coast liquefied natural gas (LNG) export developments
- Two renewable power initiatives
- One critical minerals project
5. Key Concerns: Legal and Project Delays
The survey underscores widespread anxiety about legal challenges linked to insufficient Indigenous consultation.
Without genuine engagement, companies risk:
- Regulatory delays
- Cost overruns
- Project cancellations
- Reputational harm
The data makes clear that meaningful collaboration is no longer optional—it’s a strategic necessity.
6. The Building Canada Act and Its Impact
The Building Canada Act, passed in June 2024, seeks to streamline approval processes for projects of national interest via the new Major Projects Office in Calgary.
However, Indigenous leaders have voiced concern that the Act could undermine consultation rights. In response, Ottawa established an Indigenous Peoples’ Council to provide ongoing guidance on major projects.
The first set of projects under review includes:
- LNG Canada (Phase 2)
- Mines in British Columbia and Saskatchewan
- A small modular nuclear reactor in Ontario
- A port expansion in Quebec
7. Insights from KPMG Leadership
KPMG cautioned that while the legislation aims to accelerate development, it could “oversimplify the realities of major project development.”
Effective progress, they noted, depends on balancing speed, sustainability, and inclusivity.
“Successful projects not only meet consultative requirements but embrace Indigenous leadership, shared decision-making, and strong governance models,”
added Parston.
8. Indigenous Rights and Industry Response
Many Indigenous groups have expressed skepticism about how federal frameworks will ensure real participation and benefit-sharing.
At the same time, industry leaders are increasingly adopting co-development models, which foster trust, reduce litigation, and enable faster, more sustainable progress.
9. The Path Toward Inclusive Project Development
To ensure smoother project delivery, KPMG recommends:
- Early-stage Indigenous engagement before design or investment decisions
- Shared governance structures
- Transparent benefit agreements
- Cultural awareness and training within organizations
These measures are not just about compliance—they’re about building long-term partnerships that strengthen Canada’s infrastructure ecosystem.
10. Final Thoughts
As Canada pushes for transformative energy, technology, and transportation projects, Indigenous consultation stands at the heart of responsible growth.
The KPMG report makes it clear: meaningful collaboration is essential—not only for avoiding delays but for creating shared prosperity and sustainable national progress.