Understanding the role of MOUs in government initiatives

The Carney government has signed memorandums of understanding (MOUs) for various initiatives in recent months. Speaking with The Globe and Mail, partner Jeremy Barretto said these agreements can help establish shared intentions between parties at an early stage.

“They are typically not very long or complicated, and can be non-binding on the parties,” Jeremy said.

While private sector MOUs are often used to define collaboration before a formal agreement is reached, public sector MOUs help governments align on project development, regulatory matters and future priorities.

“In my experience, governments do take them seriously, and try and work towards the goals set out in MOUs,” Jeremy added.

Read: The critical role of the Canada-Alberta MOU in Canada’s energy roadmap

By outlining areas of agreement early, MOUs can help avoid years of work and significant costs before governments determine whether their objectives are aligned.

“I think in especially the federal-provincial context, focusing on Western Canada, there hasn’t always been complete alignment on policies from climate to oil and gas development to economic development in recent years,” Jeremy noted.

Despite being non-binding, MOUs can still shape policy and signal a meaningful commitment.

“It’s one thing for the Prime Minister and the Premier to stand at a podium and say they agree on something,” he said.

“It’s another thing to put out a document that has details on the price of carbon 10 years in the future.”

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