MRC Advocates for Offshore Wind Legislation at Nova Scotia Law Amendments Committee
On September 16, 2024, Marine Renewables Canada’s Executive Director, Elisa Obermann urged the passage of Bill 471 at a Nova Scotia Law Amendments Committee meeting. The Bill proposes amendments to the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation (Nova Scotia) Act) and the Marine Renewable-energy Act that will allow Nova Scotia to stay on track to advance its goal of 5 GW of offshore wind leases by 2030. Bill 471 allows for further planning and responsible development of offshore wind, and MRC looks forward to building on our work to date to help contribute to the growth of a sustainable industry.
Following are Elisa’s remarks provided during the meeting.
Good afternoon and thank you to the Committee for the opportunity to present at today’s meeting. My aim today is to provide insight on the important amendments included in Bill 471 for the offshore wind industry and the members I represent.
My name is Elisa Obermann. I’m the executive director at Marine Renewables Canada(MRC) – the national industry association for offshore wind, tidal, wave, and river current energy. We represent 180 members and many of them are focused on realizing offshore wind development opportunities in Nova Scotia, including companies already developing offshore wind projects internationally, as well as numerous suppliers with decades of experience working in Canada’s ocean industries. While we are a national organization, about 80% of our members and activities are in Nova Scotia.
Marine Renewables Canada is fully supportive of the amendments to the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation (Nova Scotia) Act (or Accord Act) and the Marine Renewable-energy Act contained in Bill 471 and we urge the committee to ensure its swift passage.
Developing Nova Scotia’s offshore wind resources is an opportunity that we cannot let pass us by. It is an opportunity to produce clean electricity that can help decarbonize our grid and play a major role in producing green hydrogen for local and export use. It also holds tremendous potential to create local jobs, grow the economy, and establish an industry that will yield benefits for generations to come.
Globally, the offshore wind market is experiencing rapid growth with over 380 GW of new offshore wind capacity forecasted to be added over the next decade. Estimates show that this growth represents a $1 trillion market by 2040. Jurisdictions that have been active in offshore wind are a prime example of why it is important to advance this sector. For example, studies of the United Kingdom’s offshore wind industry show that 1,500 jobs are created per gigawatt during the construction phase alone. Closer to home, a recent study led by the Atlantic Economic Council estimated that during the early stages of offshore wind development in Atlantic Canada, (between 2024-2030) the total construction value could be about $7 billion, with much of the work supported by local suppliers.
Since the governments of Canada and Nova Scotia announced the intention to amend the Accord Acts to establish a joint management regime for offshore renewables in 2022, we have seen immense interest from industry and investors. In fact, MRC’s membership more than doubled in less than a year after that announcement. International businesses are establishing offices in Nova Scotia to ready themselves for the offshore wind opportunity. Local suppliers are growing their capacity and teams to support early planning activities and future development. Even at these early stages, before any project development has started, Nova Scotia is realizing economic benefits from this sector.
However, despite this interest and enthusiasm, industry and investors will not wait long for Nova Scotia to develop a pathway for offshore wind development. As time goes on, we have heard first–hand from members and industry that they need more certainty. A regulatory framework and path are critical to give certainty and confidence to investors. They will go to the countries that have a clear regulatory path. Nova Scotia is already competing against many other jurisdictions that have mature regulatory frameworks for offshore wind in place. The 18 countries that currently produce offshore wind power are set to be joined by another 17 by 2030. We need to ensure that Nova Scotia and Canada is one of them.
Bill 471 proposes amendments to the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation (Nova Scotia) Act that will expand the mandate of the Canada-Nova Scotia Offshore Petroleum Board (CNSOPB) and establishes a joint management regime to regulate offshore renewable energy, like offshore wind. This builds upon an existing and proven framework that will allow Canada to develop offshore wind efficiently and effectively. Leveraging the regulatory experience of the offshore board and working within a framework that the province, industry and stakeholders are familiar with, creates a strong foundation for this emerging sector. This approach is not unique. Other jurisdictions seeking to diversify their energy mix and enable a transition to cleaner energy resources, have also leveraged offshore oil and gas regimes and regulatory experience to support offshore wind.
The Bill also creates an interim solution for a call for bids in offshore areas in the event that the federal Accord Act legislation in Bill C-49 is delayed, by amending Nova Scotia’s Marine Renewable Energy Act. This allows Nova Scotia to stay on track to advance its goal of 5 GW of offshore wind leases by 2030. It sends a strong and necessary signal to industry and investors that Nova Scotia is committed to meeting its timelines for offshore wind development and is serious about growing a new clean energy sector. It also helps ensure offshore wind development can contribute to achieving Nova Scotia’s clean electricity and net zero goals that are critical to fighting climate change.
From the planning stage to the time an offshore wind project is commissioned can take 7-10 years. That is why the passage of Bill 471 and the proposed amendments are so important – this industry will take time to be established. This is one step and there are many more ahead of us before offshore wind development can occur.
For this industry to be successful, it must be developed responsibly, with the scientific rigour required to maintain the integrity of marine ecosystems and with respect for the inherent, legal and treaty rights of our Indigenous communities. That same respect must be extended to local residents, and other ocean users. MRC and its members are deeply committed to these principles and believe in early and proactive engagement. That is why even before federal and provincial governments publicly announced the intention to amend the Accord Acts in 2022, we have been working to foster an early two-way dialogue with fisheries, communities, suppliers, environmental organizations, and Indigenous groups to understand concerns, share information, and find areas of cooperation and collaboration. Bill 471 allows for further planning and responsible development of offshore wind, and MRC looks forward to building on our work to dateto help contribute to the growth of a sustainable industry.
In closing, I would like to emphasize that given the critical importance of establishing a regulatory framework for offshore wind in a timely manner, MRC fully supports Bill 471. The proposed amendments continue to support an approach that focuses on future development in offshore, joint management areas. It also allows for ongoing coordination between federal and provincial governments to ensure regulatory certainty and careful consideration of ocean-user coexistence.
We are confident that the amendments, along with parallel processes and initiatives underway at local, provincial and federal levels establish the regulatory certainty that is needed by industry to make critical investment decisions and ultimately establish a new clean energy industry in Nova Scotia.
I am truly appreciative of the opportunity to provide this perspective today – thank you for having me.