The One Canadian Economy Act (Bill C-5) was designed to tear down internal trade barriers and accelerate projects deemed essential to Canada’s sovereignty and prosperity. By treating provincial standards as equivalent and creating a fast-track system for Projects of National Interest, the Act promises to deliver long-awaited efficiencies (Beale Law).
For industries dependent on scale, speed, and certainty, this is a breakthrough. Yet one question remains unanswered: where will the capital come from to fund the surge of new projects and innovation this Act envisions?
Capital Formation: The Missing Link
Canada’s financial system remains cautious. Despite OSFI urging banks to take more “smart risks”, lending has lagged. Venture capital is concentrated in a few urban hubs, leaving many founders and regions underserved.
This is where flow-through shares (FTS) can fill the gap. For decades, FTS have allowed resource exploration companies to raise over $1 billion annually by transferring tax credits to investors (Reuters). It is one of Canada’s most effective tools for unlocking private capital.
Extending this proven model to technology, cleantech, and advanced manufacturing startups would dovetail perfectly with the Act’s goals:
- National Reach: FTS democratize investment across provinces, aligning with the Act’s removal of interprovincial barriers.
- Project Acceleration: Nation-building projects in critical minerals, energy transition, and digital infrastructure could secure private risk capital.
- Job Creation: Flow-through-enabled innovation startups would create high-quality employment, addressing Canada’s labour market stagnation.
Building Canada Requires Financing Canada
The government’s own narrative around the Act emphasizes resilience, autonomy, and sovereignty. But resilience requires more than streamlined approvals; it requires capital. Without a complementary financing strategy, the Act risks creating blueprints without builders.
International precedents prove the model works. The UK’s Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) have raised more than £30 billion for 53,000 companies, creating 400,000 jobs. Australia’s equivalents show similar success. Canada invented the model with FTS — it’s time to reclaim leadership by extending it to innovation.
Why Now Matters
The Act’s five-year review clause means policymakers will soon be measuring outcomes. If capital shortages stall progress, extending FTS will emerge as the logical fix.
- Tech Flight: Two-thirds of Canadian startups already move to the U.S. for funding (Globe and Mail).
- Labour Market Pressures: Unemployment is rising, yet startups that could absorb talent lack capital.
- National Interest: If building pipelines, ports, and plants is in the national interest, so is ensuring our innovators stay Canadian.
The Path Ahead
The One Canadian Economy Act has laid the foundation for a more unified and agile economy. To realize its potential, Canada must pair regulatory ambition with financial innovation. Extending flow-through shares to technology and innovation is the missing piece — a uniquely Canadian solution to mobilize private capital at scale.
Canadians who believe in building here at home can help shape that future by sharing their perspectives and supporting the movement.
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