The Canadian Senate has approved a bill designed to expedite the approval process for natural resource and infrastructure projects, despite facing significant opposition from indigenous and environmental groups.

The legislation, which aims to classify certain projects as being of "national interest", could have implications for mines and oil pipelines, while also removing some interprovincial trade barriers, reported Reuters.

The bill, which passed the lower chamber last week and cleared the Senate, is seen as a test for Prime Minister Mark Carney, who has committed to transforming Canada's economy, the report said.

The legislation includes 'Henry VIII clauses', granting the Cabinet considerable power over the application of laws to projects deemed in the national interest.

Indigenous and environmental leaders have expressed their discontent with the bill, with some threatening legal action and others pledging to demonstrate.

Sara Mainville, a lawyer and former chief of the Couchiching First Nation, highlighted that her clients are considering legal action, while Assembly of First Nations National chief Cindy Woodhouse Nepinak called the bill “a major threat to First Nations rights”.

The duty to consult with First Nations, a constitutional requirement in Canada, has been a point of contention, with indigenous groups arguing that the fast-tracking process undermines their right to meaningful consultation.

Mainville emphasised the need for accommodation, not just consultation, to ensure that concerns lead to changes in project plans.

The law will take effect after being signed by Governor General Mary Simon.

This move follows similar legislation in Ontario and British Columbia aimed at accelerating infrastructure projects.

In a related development, the US has imposed significant tariffs on Canadian steel and aluminium, causing concern for industries and unions such as Unifor and the Aluminium Association of Canada.