KPMG finds businesses wary of project delays without proper Indigenous consultation

Prime Minister Mark Carney announces five major projects as part of his plan for Canada to navigate changing trade relationships in Edmonton on Thursday, Sept. 11, 2025. THE CANADIAN PRESS/Amber Bracken

A survey from KPMG in Canada suggests virtually all business leaders are keen on Ottawa’s push for new nation-building infrastructure, but a hefty majority is leery of legal setbacks if Indigenous consultation falls short.

The advisory firm says three in 10 respondents gave an all-of-the-above answer when asked what categories of projects they want to see prioritized, giving equal billing to energy, artificial intelligence, transportation and ports.

A quarter said their priority was energy, followed by 22 per cent for AI, 18 per cent for transportation and five per cent for ports.

Projects that respondents highlighted included two focused on West Coast liquefied natural gas exports, two on renewable power and one on critical minerals.

The survey of 501 business owners and executives was conducted between Sept. 11 and Oct. 2 to gauge opinions ahead of next week’s federal budget.

Eighty-four per cent of respondents said they were worried about delays and setbacks due to legal challenges that could result from Indigenous groups not being sufficiently consulted.

“Early and meaningful consultation with Indigenous communities and the public is key, but if it becomes a box-checking exercise instead of genuine dialogue, it could damage trust and spark opposition in the project,” said Zach Parston, partner and national infrastructure leader at KPMG.

“The successful projects not only meet consultative requirements but embrace Indigenous leadership, shared decision-making, co-development and strong governance models.”

The Building Canada Act became federal law in June. It aims to speed along projects deemed in the national interest through the Calgary-based Major Projects Office.

The first tranche of major projects it’s reviewing include the second phase of LNG Canada, mines in B.C. and Saskatchewan, a small modular nuclear reactor project in Ontario and a port expansion in Quebec.

The legislation drew criticism from many Indigenous leaders concerned their rights could be undermined. Ottawa has tabbed an Indigenous Peoples’ Council to advise on major projects.

KPMG said in its release Thursday that the legislation “risks oversimplifying the realities of major project development.”

This report by The Canadian Press was first published Oct. 30, 2025.

Lauren Krugel, The Canadian Press