Given high commodity prices and demand for resources, the number of major resource projects has grown by 200 percent between 2003 and 2006, and the trend is continuing. As much as $300 billion in capital investment in resource projects is possible in the next 5 to 10 years. The current regulatory system cannot keep up with this demand.

The Major Projects Management Office (MPMO) was established through the Government of Canada's Regulatory Improvement Initiative aimed at improving the performance of the federal regulatory system for major natural resource projects.

Budget 2007 provided $150 million over five years for the Initiative which provided the funding needed to create the MPMO and also to enhance the scientific and technical capacity of key regulatory departments and agencies that deal with major resource projects. Participating departments and agencies include the Canadian Environmental Assessment Agency, Natural Resources Canada, Environment Canada, Fisheries and Oceans Canada, Transport Canada, Aboriginal Affairs and Northern Development Canada, the Canadian Nuclear Safety Commission and the National Energy Board.

The MPMO was established to advance the principles of transparency, predictability, timeliness and accountability in the Government of Canada's approach to the review of major resource project applications. It will improve the efficiency and effectiveness of the regulatory review process and the competitiveness of Canada's resource industries while providing the capacity needed to uphold world-class environmental standards.