Canada Releases Nuclear Energy Strategy

On June 22, 2026, the Government of Canada (Government) released the Nuclear Energy Strategy for Canada (the Strategy). The Strategy outlines how the Government will support energy affordability, security, and sustainability by building on Canada’s decades of nuclear expertise and local resources. It sets out a coordinated, strategic approach to nuclear energy development to deliver economic, environmental and energy security benefits to Canadians through four key pillars, the highlights of each of which are set out below.

The Strategy is positioned as a key complement to the Government’s Powering Canada Strong strategy, which aims to double Canada’s electricity grid capacity by 2050. For more information on the Powering Canada Strong strategy, see our recent Blakes Bulletin: Canada Issues National Strategy for Electrifying the Canadian Economy: “Powering Canada Strong”.

The Four Strategic Pillars

1. Enabling New Builds Across Canada

10 New Nuclear Reactors

The Strategy calls for the construction of two large-scale nuclear reactors, with at least one reactor located outside Ontario, to start by 2035, and a further five reactors to be planned or under development by 2040.

The Strategy points to the 2018 Small Modular Reactor (SMR) Roadmap, which set out three primary applications for nuclear technology in Canada: on-grid, industrial and remote communities. The Strategy diverges from previous nuclear development documents, including the 2018 SMR Roadmap, by first calling for development of large-scale reactors over SMRs.

To accomplish this, the Government will work with industry, utilities and provinces to ensure that CANDU (CANada Deuterium Uranium) reactors remain a competitive and commercially viable technology. The Government will also prioritize the deployment of a limited number of reactor designs per use case — including on-grid, industrial heat and remote settings — to reduce regulatory burden, construction risk and supply chain costs.

The Strategy also aims to support the development of nuclear technology in remote communities by calling for a Canadian-made microreactor design to be finalized by 2035 and deployed in a remote community by the late 2030s.

Regulatory Streamlining

In line with the Government’s other initiatives to fast-track major infrastructure projects, the Strategy aims to streamline impact assessment and licensing processes for nuclear projects. The target is to complete federal regulatory review within two years. This will be accomplished by making the Canadian Nuclear Safety Commission (CNSC) the responsible authority for conducting assessments of applicable nuclear projects under the federal Impact Assessment Act. As the CSNC is already the agency that licenses nuclear projects, this change seeks to make the nuclear licensing regime more efficient by reducing redundancies that can occur when obtaining multiple approvals from different regulators.

Financing Policy

While the Strategy does not provide new funding, it states that a draft Federal Financing of New Nuclear Power Projects policy will be released by April 2027. The purpose of the policy is to outline the supports and financing tools available for new nuclear projects, including green bonds, loan guarantees and participation from the Canada Infrastructure Bank. The policy is based on recent public-private risk-sharing models seen in other jurisdictions, including the United Kingdom.

The policy will align with other federal policies, including the Powering Canada Strong strategy discussed above, and the Strategic Financing Framework announced in Budget 2025.

Indigenous Participation and Investment

The Government will prioritize projects that support Indigenous capacity-building and equity participation, including direct employment opportunities, when making federal funding and financing decisions.

The day after the Strategy was released, the Government announced that the seven Williams Treaties First Nations will become minority owners of the Darlington SMR project through the Indigenous Loan Guarantee Program. The Government and Ontario are providing C$700-million in loan guarantees, to which will turn into equity in the Darlington New Nuclear Project.

This funding builds on Canada Growth Fund’s recent C$2-billion investment in the Darlington New Nuclear Project.

The loan guarantee represents the first equity partnership with First Nations in a nuclear reactor in Canada and is one of the largest Indigenous investments in a major infrastructure project in Canada’s history. The loan guarantee is an example of how the Government can support Indigenous ownership in major energy infrastructure projects.

Supply Chain Requirements

The Government will partner with industry, utility and provincial stakeholders to assess supply chain requirements for new nuclear projects, identifying areas for federal intervention and partnerships with other countries with advanced nuclear capabilities.

The Strategy also aims to support Canada’s technological sovereignty by maximizing the use of Canadian intellectual property and supply-chain networks. Where a foreign-controlled technology is selected, the Government will advocate for the majority of supply chain participation to occur in Canada. The Government also expects provinces and territories to manage risks associated with foreign technology dependencies, such as restrictions on fuel fabrication and exports.

Workforce Expansions

To support the expansion of nuclear energy, the Strategy seeks to double Canada’s nuclear workforce through Government programs, support for academic and training programs, coordination of professional training and learning programs at Chalk River Laboratories, and investment in the Canadian Nuclear Learning Centre. This will require partnerships with provincial and territorial governments, educational institutions, labour unions, industry, utilities and Indigenous communities.

2. Being a Global Supplier and Exporter of Choice

Pillar 2 discusses taking a “Team Canada” approach to supplying and exporting nuclear reactor technologies, fuel and medical isotopes to international partners. The Strategy establishes a Nuclear Export Working Group to develop and execute an export strategy to identify priority countries and expedite export growth to new markets. This will be coupled with a more efficient export application process that upholds Canada’s international obligations.

The Strategy also seeks to secure CANDU technology in at least four new international markets by 2040 while engaging six to ten new nuclear entrant markets to ensure that Canada is a partner of choice for nuclear energy. This will be accomplished by offering comprehensive technical support and progress monitoring between Canada and the host country.

For non-CANDU technology, the Government wants Canada to have significant supply chain participation in new large reactor and SMR projects by 2040. The Government also aims to build supply chains and third-market partnerships with reliable allies to build on Canada’s domestic capabilities and pursue new international opportunities.

3. Expanding Uranium Production and Nuclear Fuel Opportunities and Supporting World-Class Long-Term Nuclear Waste Management

Pillar 3 addresses recent global instabilities in the nuclear fuel supply chain and positions Canada as a reliable actor to support the evolving demand for nuclear energy. Pillar 3 relies on Canada’s strong nuclear waste management regime to ensure that Canada’s nuclear sector can grow safely.

In line with the export ambitions set out in Pillar 2, the Government aims to double uranium exports from 2024 levels by 2035. The Government will review Canadian policies on investment in uranium mining by 2027 to incentivize foreign investment while ensuring that Canadian interests and energy security is upheld.

4. Developing New Canadian Nuclear Innovations (Including Fission and Fusion)

Pillar 4 seeks to draw on Canada’s nuclear experience to ensure that Canada captures the long-term economic benefits of being a technology leader in the nuclear energy industry by investing in next-generation nuclear technologies and supporting research.

The Government is positioning Canada as a leader in fusion nuclear technology by working with partners through the Centre for Fusion Energy.

Regarding nuclear research, the Government will consider developing a new large-scale research reactor to replace the National Research University reactor, which was shut down in 2018. The Strategy provides that supporting research has a direct link to long-term GDP (gross domestic product) growth as these investments attract top-tier international talent to Canada.

Natural Resources Canada will develop a Radioisotope Strategy to ensure that Canada continues to lead in medical, industrial, agricultural and next-generation isotope applications, including quantum computing. The Radioisotope Strategy will support Indigenous equity partnerships in the industry, such as the Gamzook’aamin aakoziwin partnership between Saugeen Ojibway Nation and Bruce Power.

Looking Ahead

The Strategy effectively serves as a blueprint of the Government’s commitment to supporting nation-building nuclear projects to bring clean electricity to the grid at an unprecedented scale and speed, while positioning Canada as a global leader and preferred partner in nuclear energy projects.

The Strategy will, however, require deep levels of coordination among the Government, provincial and territorial governments, industry and Indigenous peoples to succeed. For instance, it remains to be seen how grid connection timelines and environmental regulatory approvals and permitting will be coordinated between the federal and provincial jurisdictions to ensure the timely delivery of the Strategy’s development and export goals.

Please contact the authors or any other member of our Power or Energy Regulatory groups for more information, as we continue to closely monitor the implementation of the Strategy across Canada. Also, visit our Major Projects practice page to learn more about our multidisciplinary expertise.