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Canada

Supporting Policies for Ocean Energy

 

NATIONAL STRATEGY

Government of Canada

2025 saw the implementation of Bill C-49, An Act to amend the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act and the Canada-Newfoundland and Labrador Offshore Petroleum Resources Accord Implementation Act, establishing the legislative foundation for the development and regulation of offshore renewable energy projects in Canada’s jointly managed offshore-areas, such as offshore wind, wave, and tidal energy, off the coasts of Nova Scotia and Newfoundland and Labrador. It also renamed the Canada-Nova Scotia Offshore Petroleum Board and the Canada-Newfoundland and Labrador Offshore Petroleum Board to the Canada-Nova Scotia Offshore Energy Regulator (CNSO ER) and the Canada-Newfoundland and Labrador Offshore Energy Regulator (CNLOER), reflecting the expansion of their mandates to include regulatory oversight of the full lifecycle of offshore renewable energy projects within the two jointly managed offshore areas. This marked a significant milestone in positioning Canada for responsible, long-term growth in the offshore clean energy sector.

 
In 2025, the Government of Canada established the new Major Projects Office (MPO) with the intent of fast-tracking “nation-building” projects. MPO was established through Bill C-5, the Building Canada Act, which came into force in June 2025, as part of Canada’s effort to improve oversight and coordination of large-scale infrastructure and energy projects. The MPO has the authority to streamline federal regulatory approvals, advance projects deemed in the national interest, and act as a single point of contact for proponents, Indigenous partners, and government departments. By centralizing project oversight and regulatory guidance into a “one window approach”, the MPO aims to accelerate project delivery while maintaining strong governance and accountability. In the fall, Wind West, a province-led proposal to connect Nova Scotia’s offshore energy westward, was identified by the MPO as a Transformative Strategy for further refinement and development. If Wind West advances, it could help attract private investment and set a course for long term wind resources development in the Maritime provinces.
 
Newfoundland and Labrador
 
In June 2025, the province of Newfoundland and Labrador proclaimed amendments to the Canada-Newfoundland and Labrador Atlantic Accord Implementation Act to align provincial law with federal marine renewable energy legislation. It enables the regulation and development of tidal, wave and other offshore renewable energy projects, establishes a land tenure system for submerged lands, updates safety and environmental protections, and modernizes the offshore regulator’s powers.
 
Nova Scotia
 
In 2025, Nova Scotia passed Bill 149, the Powering the Offshore Act, in an effort to improve the province’s legal framework to accelerate offshore renewable energy development. The Act strengthens support for offshore wind and tidal energy projects, streamlines licensing processes, and enables power purchase agreements that bring clean energy to Nova Scotia’s communities. Notably for tidal energy, the legislation enables the merging of marine renewable energy licences, making it easier for tidal projects in the Bay of Fundy to advance by offering more certainty and flexibility for developers, addressing previous challenges in the sector. It also clarifies regulatory and tax provisions for energy infrastructure, providing greater certainty for investors and developers. In addition, the passage of Bill 471 Advancing Nova Scotia Opportunities Act in 2024 brought into force amendments to the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act, allowing for the alignment of provincial legislation with federal legislation.

 

MARKET INCENTIVES

In Canada’s 2025 budget, two incentives, the Productivity Super Deduction and enhancements to the Scientific Research and Experimental Development (SR&ED) incentives, offer avenues for the marine renewable energy sector to reduce costs. The Productivity Super-Deduction provides accelerated write-offs and, in many cases, full first-year expensing for clean-energy equipment, manufacturing and processing assets, R&D infrastructure, and other productivity-enhancing investments, lowering capital costs for companies developing tidal, wave, and hydrokinetic river current energy. At the same time, expanded SR&ED incentives support increased research, prototyping, and technology development that could support marine renewable energy.
 
The Federal government also included a commitment in Budget 2025 to introduce legislation to implement the 15% Clean Electricity Investment Tax Credit. This refundable tax credit for eligible investment into systems that produce clean electricity bolsters existing credits including a 30% Clean Technology Investment Tax Credit for wave, tidal and other clean energy technologies, and a 30% Clean Manufacturing Investment Tax Credit for new machinery and equipment used to manufacture or process key clean technologies.


Consenting processes



MARINE SPATIAL PLANNING POLICY

At the federal level, there is no existing marine spatial planning policy for ocean energy. Spatial planning for ocean energy takes place only in the province of Nova Scotia.

Pre-selected areas for tidal current energy development have been selected in the province of Nova Scotia, in the Bay of Fundy.

Site selection was determined, in-part, by a Strategic Environmental Assessment (SEA) on tidal energy development in the Bay of Fundy (FORCE). Resource assessments were also considered as part of the site selection. Another area in Nova Scotia that recently underwent a SEA is Cape Breton Island, inclusive of the Bras d’Or Lakes.

The Oceans Act, Canada’s Oceans Strategy, and the Policy and Operational Framework for Integrated Management of Estuarine, Coastal and Marine Environments in Canada provide the policy framework and guide Canada’s approach to oceans management. Integrated Management efforts in Canada are being undertaken through an area-based approach that supports marine planning, management and decision-making at appropriate spatial scales, from regional to site-specific.


AUTHORITIES INVOLVED

The authorities involved in the consenting process are:

• Federal authorities: Fisheries and Oceans Canada, Transport Canada, Environment Canada, Canadian Environmental Assessment Agency, Employment and Social Development Canada, Public Works and Government Services, Aboriginal Affairs and Northern Development Canada.

• Province of Nova Scotia: Department of Energy, Department of Natural Resources, Department of Fisheries and Aquaculture, Department of Environment, Department of Labour and Advanced Education, Office of Aboriginal Affairs.

• Members of Nova Scotia’s Federal/Provincial One Window Committee on Tidal Energy:

- Federal: Atlantic Canada Opportunities Agency, Transport Canada, Natural Resources Canada, Fisheries and Oceans Canada, Canadian Environmental Assessment Agency, Environment Canada, Aboriginal Affairs and Northern Development Canada;

- Provincial: Energy, Natural Resources, Aboriginal Affairs, Fisheries and Aquaculture, Labour and Advanced Education, Environment, Economic and Rural Development and Tourism.


CONSENTING PROCESS

Within the province of Nova Scotia, the Department of Energy is responsible for managing the consenting process through a “one window committee” process, consisting of federal and provincial government departments/agencies with an interest in the marine environment and ocean energy.

At the federal level, authorizations required prior to the approval of marine renewable energy projects include land use, project activities, transmission, occupational health and safety, operational safety, environmental protection and navigation.

At the provincial level, in Nova Scotia projects are not able to proceed in an area that has not undergone a SEA.

At FORCE testing site, projects must be approved by the Minister of Energy and are selected through a competitive Request for Proposal process.

A key piece to Nova Scotia’s Marine Renewable Energy Act is the creation of a licensing and permitting system that will oversee the development of marine renewable energy projects. Any generator proceeding in a priority area without an approval will be in violation of the Act. A license will allow a project developer to carry out the business of extracting energy within a ‘marine renewable-electricity area’ (i.e., an area designated for development) through single or multiple devices. A permit will be issued to a temporary deployment of a device for the purposes of testing and demonstration. This system will ensure that projects proceed only after undergoing a thorough review by the Government and subject to effective Government oversight and monitoring.


ENVIRONMENTAL IMPACT ASSESSMENT

The Canadian version of an Environmental Impact Assessment (EIA), is typically required for projects.

A federal Environmental Assessment is required for tidal current projects 50 MW or greater. Tidal current projects less than 50 MW do not require a federal Environmental Assessment. If the tidal current project is located on federal lands (i.e. the federal seabed), then a federal Environmental Analysis is required. Tidal current projects less than 50 MW and located on provincial lands (i.e. the provincial seabed), are only subject to a provincial Environmental Assessment. In Nova Scotia, a provincial Environmental Assessment is required for tidal current projects greater than 2 MW. Projects can be subject to Environmental Assessments below these thresholds at either the federal or provincial level, subject to Ministerial discretion.

The Canadian Environmental Assessment Agency is the federal authority responsible for a federal Environmental Assessment.

Environmental Assessments usually require ongoing environmental effects monitoring throughout the lifecycle of a project.


LEGISLATION AND REGULATION

There is no legislation or regulations designed solely for the licensing of renewable energy activity in the offshore.
Nova Scotia’s Electricity Act and Renewable Electricity Regulations outline two paths for the development of tidal energy projects: at a community level and large-scale R&D level. The Regulations outline a comprehensive application process that projects must undergo in order to receive one of two feed-in tariff rates.

In 2011, Canada’s Federal Government established the Marine Renewable Energy Enabling Measures program to develop and present to Cabinet, by March 2016, a federal policy framework for administering marine renewable energy activities.

The Government of Nova Scotia passed the Marine Renewable Energy Act in 2015, which applies to Nova Scotia’s Bay of Fundy and the Bras d’Or lakes. This legislation ensures that marine renewable energy projects, including in-stream tidal, tidal range, offshore wind, wave and ocean currents, are developed in a manner that respects the environment and the interests of local communities; ensures increased consultation and provides for the safe, responsible and strategic development of the industry; and establishes a licensing and permitting system for the placement of marine renewable energy generators in those areas.


CONSULTATION

Consultations can occur as part of the SEA process.

Nova Scotia also undergoes engagement with stakeholders, ratepayers, and taxpayers primarily at the SEA stage, but also throughout the lifecycle of the project.

Statutory consultation required:

At the federal level, the Government of Canada has a legal duty to consult Aboriginal people when there are potential or established Aboriginal or treaty rights that may be adversely impacted by a contemplated Crown conduct, such as a marine renewable project approval.

Like the Government of Canada, the Government of Nova Scotia has a duty to consult with the First Nations of Nova Scotia, the Mi’kmaq.

Informal consultation activities:

There are two cooperative mechanisms for Canada and Nova Scotia Mi’kmaq consultation—the Canada-Nova Scotia Memorandum of Understanding (MOU) on Consultation Cooperation and the tri-partite Mi’kmaq/Nova Scotia/Canada Consultation Terms of Reference (TOR).

The Nova Scotia Department of Energy leads an Energy Consultation Table with the participation of federal authorities and the Mi'kmaq where provincial energy issues are discussed.


GUIDANCE AND ADVICE

The One Window Committee, along with the Province of Nova Scotia’s Marine Renewable Energy Strategy provide guidance to developers on potential permits/approvals, and review processes.


TEST CENTERS

The Fundy Ocean Research Centre for Energy (FORCE) has an approved Environmental Assessment for its full site, inclusive of its four deployment berths. As such, developers at the site do not have to undergo individual EAs. Developers are still required to provide applications to other relevant regulatory agencies.





 

The OES is organised under the auspices of the International Energy Agency (IEA) but is functionally and legally autonomous. Views, findings and publications of the OES do not necessarily represent the views or policies of the IEA Secretariat or its individual member countries.