Prime Minister Mark Carney announced a major clean-energy investment package on August 17, working with Quebec and Newfoundland and Labrador on large-scale electricity and infrastructure projects.

The federal government says the package could provide up to $10 billion in federal financial support and investments.

The initiative includes upgrades to Churchill Falls, development of the proposed Gull Island hydroelectric project and supporting infrastructure in Labrador.

The government says the investment is also intended to help enable critical-minerals development in the Labrador Trough, linking Canada's electricity strategy with its broader industrial and resource policy.

Carney made the announcement alongside Quebec Premier Christine Fréchette, Newfoundland and Labrador Premier Tony Wakeham, and executives from Hydro-Québec and Newfoundland and Labrador Hydro.

The agreement puts interprovincial energy cooperation high on Ottawa's political agenda as Canada seeks to expand reliable, low-carbon electricity and strengthen domestic infrastructure.

For the federal government, the projects could also become an important part of its strategy to attract investment, support resource development and build Canada's electricity capacity.

The announcement is likely to generate political attention because major hydroelectric projects involve significant public investment, long construction timelines and negotiations between governments and Indigenous communities.