April 5, 2022 St. John's, Newfoundland and Labrador Natural Resources Canada
Canada's approach to creating sustainable jobs includes identifying and pursuing opportunities for regional economic transformation that will lead to sustained economic growth compatible with a net-zero economy. The Government of Canada is working with partners across the country to build a clean economy, advance economic reconciliation, support the energy sector and ensure a just transition that creates sustainable, middle-class jobs for people and communities in every province and territory.
Today, the Honourable Jonathan Wilkinson, Canada's Minister of Natural Resources, and the Honourable Andrew Parsons, Newfoundland and Labrador's Minister of Industry, Energy and Technology, jointly announced their intention to facilitate the transition to a clean economy and create sustainable jobs by refreshing and expanding the mandate of the Canada-Newfoundland and Labrador offshore energy regime. Both governments also committed to expedite the elimination of subsidies for fossil fuels, including for the offshore energy sector.
To address and capitalize on emerging opportunities, the two governments have agreed to work toward modernizing the Canada-Newfoundland and Labrador Offshore Petroleum Board (C-NLOPB) that would expand its mandate to include the regulation of offshore renewable energy development in the Canada-Newfoundland and Labrador offshore areas, such as offshore wind and clean hydrogen. Modernizing the C-NLOPB is consistent with both governments' commitments to diversify their economies and includes an intention to move forward by renaming the Board to the Canada-Newfoundland and Labrador Offshore Energy Board (C-NLOEB) to reflect its new mandate.
To implement these changes, the Government of Canada intends to amend the Canada-Newfoundland and Labrador Atlantic Accord Implementation Act, and the Government of Newfoundland and Labrador has committed to introducing mirroring legislative amendments in the province's House of Assembly.
The C-NLOEB will draw on existing regulatory experience, technical expertise and administrative capacity. The new Board will become the lead regulatory body for offshore energy in the Canada-Newfoundland and Labrador offshore areas, creating a predictable and streamlined regulatory environment and promoting investor confidence in the deployment of renewables.
The governments of both Canada and Newfoundland and Labrador are committed to creating regulatory alignment and certainty in a way that will allow offshore renewable projects to be expedited moving forward in support of the clean energy transition. Therefore, both governments will work together to consider adjustments to the regulatory regime for these projects to proceed as efficiently as possible while still ensuring that regulatory reviews are rigorous and effective.
As the Government of Newfoundland and Labrador continues to build on its strategy for economic growth and job creation, it is committed to taking the actions set out in its provincial Climate Change Action Plan, advancing electrification and innovation, and implementing its Renewable Energy Plan to further the transition into more renewable energy sources. This work is well underway and will continue to be informed by input from the general public, industry and business leaders, civil society organizations, Indigenous groups and the Newfoundland and Labrador Net-Zero Advisory Council announced in December 2021.
In further support of this work, the Minister of Environment and Climate Change is initiating a regional assessment under the Impact Assessment Act for wind energy in Newfoundland and Labrador's offshore. This regional assessment will be conducted in consultation with the C-NLOPB and assist in providing long-term regulatory certainty and clarity for investors.
Additionally, Natural Resources Canada will initiate a regional process to work collaboratively with provinces and territories, including Newfoundland and Labrador, Indigenous partners and the private sector to create place-based economic strategies that facilitate the creation of sustainable jobs through the clean energy transition.
