The Canadian Nuclear Safety Commission (CNSC) is Canada's independent nuclear regulatory agency, established under the Nuclear Safety and Control Act to regulate all nuclear activities in Canada including uranium mining, fuel fabrication, nuclear power plant operation, radioactive waste management, and the export of nuclear technology. The CNSC is responsible for licensing decisions, compliance oversight, and ensuring that Canada meets its international obligations under the Treaty on the Non-Proliferation of Nuclear Weapons. For the SMR industry, the CNSC has emerged as one of the world's most active regulatory bodies for advanced reactor review, driven by Canada's ambitious nuclear energy strategy and its role as a first-mover deployment market for several SMR designs.

The CNSC's most consequential recent action was granting Ontario Power Generation (OPG) a License to Construct for the GE-Hitachi BWRX-300 at the Darlington Nuclear Generating Station in April 2025, making it the first SMR to receive construction authorization in North America. Construction began the following month, positioning the Darlington BWRX-300 as the first North American SMR to advance to physical construction. The CNSC employs a pre-licensing Vendor Design Review (VDR) process that allows reactor developers to obtain early regulatory feedback without the cost and commitment of a full license application. Several designs have completed or are progressing through the VDR process: ARC Clean Technology's ARC-100 (sodium-cooled fast reactor) completed Phase 2 VDR in July 2025 with no fundamental barriers identified, making it the first SFR to clear CNSC pre-licensing; Terrestrial Energy's IMSR completed Phase 2 VDR with no barriers; and Ultra Safe Nuclear's MMR is in pre-licensing engagement.

Canada's regulatory framework provides several advantages for SMR deployment. The CNSC has demonstrated willingness to engage with non-light-water technologies early in the design process, develop regulatory guidance for novel reactor types, and coordinate with international regulators to share review findings. Canada's nuclear infrastructure, including the Canadian Nuclear Laboratories (CNL) at Chalk River and the established supply chain supporting the CANDU reactor fleet, provides industrial capacity for SMR construction. The BWRX-300 project at Darlington, backed by OPG's CAD $3 billion investment, serves as a reference case for the CNSC's ability to license and oversee advanced reactor construction, with implications for subsequent SMR projects across the country including ARC Clean Technology's deployment at Point Lepreau, New Brunswick.