Federal Offshore Wind Power Law Takes Effect in NL as Energy Projects Gain Momentum

File photo shows offshore wind farms near Nysted, Denmark. Tom Little/File Photo/Reuters

Federal legislation on the development of offshore wind energy in Newfoundland and Labrador has come into effect amid cross-country interest in building new energy projects.

Bill C-49 was adopted last October and came into effect this week after the province adopted mirror legislation in March. It amended previous legislation on offshore petroleum management and revenue sharing to add offshore renewable energy projects to the regulatory mandate, such as wind and hydrogen.

“This will boost the already-strong role Newfoundland and Labrador plays in Canada’s energy landscape, and on our promise of harnessing the power of clean energy to diversify trade, create jobs, and position Canada as a global energy superpower,” Energy and Natural Resources Minister Tim Hodgson said on social media.

The amendments to the existing legislation allow the previous oil offshore regulator to regulate offshore renewable energy projects in a similar manner to how it already regulates petroleum projects, including managing impact assessments.

Nova Scotia also passed mirror legislation to Bill C-49, with the laws coming into force in that province earlier this year in January.

The coming into force of C-49 in Newfoundland and Labrador was welcomed by the private sector. “It provides the regulatory clarity and collaboration needed to advance clean energy development, attract international investment and create sustainable jobs,” Elisa Obermann, executive director of Marine Renewables Canada, said in a statement.

Canada aims to reduce its greenhouse gas emissions by 40 percent below 2005 levels, and ultimately reach net-zero emissions by 2050, as set out in its 2030 Emissions Reduction Plan. These targets have driven a push for developing new renewable energy projects in Canada.

Natural Resources Canada said the offshore wind energy market is expected to generate $1 trillion in global investments by 2040, adding that Atlantic Canada’s coastline is the longest in the world and could lead to “economic growth and job creation” by taking advantage of its wind resources.

Conservative legislators had expressed concern about the regulatory requirements of Bill C-49, with MP Shannon Stubbs warning it would drive investment out of Canada with “more uncertainty, red tape, and extended and costly timelines.”

Stubbs said she supports both the oil and gas and renewable energy developments in Atlantic Canada, but said she is concerned that similar to the Impact Assessment Act, or Bill C-69—which Conservatives have named the “no-more pipelines” law—the new legislation could add more red tape.

Stubbs said during debate on the bill in 2023 that the added regulations drive out billions in investments and hundreds of thousands of energy jobs out of Canada.

She said that the legislation includes provisions that could impose a full shutdown on offshore oil and gas development, calling it “a direct attack on one of Newfoundland’s key industries, risks undermining the rights of indigenous communities and local communities to meaningful consultation, and ignores the work and aspirations of other locally impacted communities and residents.”

Liberal and NDP MPs voted in support of the bill, while the Conservative and Bloc Québécois MPs voted against it.

Bill C-49 is coming into force in Newfoundland and Labrador at a time when there is a growing appetite in Canada to build new energy projects and strengthen the economy amid U.S. trade tensions.

Canada’s first ministers met in Saskatoon on June 2, and said in a joint statement they intend to “build a stronger, more competitive, and more resilient Canadian economy.” They agreed to work together to “accelerate major projects” to reach that objective.

“First Ministers also agreed to build cleaner and more affordable electricity systems to reduce emissions and increase reliability toward achieving net zero by 2050,” the statement reads.

The first ministers echoed the federal government’s plan to grow Canada’s economy to become the strongest economy in the G7 and a “global energy superpower.”

Matthew Horwood and Noé Chartier contributed to this report.