A co-operation agreement signed on 27 March 2026 is expected to streamline the approval process for offshore energy projects in Nova Scotia that require federal and provincial environmental approval
Under the agreement, the Canadian province and federal government have agreed to streamline the process when both federal and provincial environmental approvals are needed for major infrastructure and resource projects, including marine and offshore energy projects.
Premier Tim Houston and Prime Minister Mark Carney signed the co-operation agreement, also known as the ‘One project, one review’ model, and it is now in effect. The types of projects which need approvals from both levels of government include energy transmission lines that cross interprovincial boundaries, airports, marine terminals and ports, pipelines and some mining projects.
Nova Scotia’s Wind West project will, for example, need an onshore transmission line to transmit energy to the market across Canada and beyond. With some of the strongest and most consistent offshore winds in the world, Wind West has the potential to power about a quarter of Canada’s electricity needs.
Nova Scotia Premier Tim Houston said, “As global demand for reliable, sustainable and ethical energy and mineral sources continues, Nova Scotia is ready to meet the moment. With this agreement, Canada and Nova Scotia are standing together to quickly unlock the many benefits of our province’s energy sector, while making our nation more resilient and competitive.”
Under the one project, one review model, a project that would have previously been subject to a federal impact assessment and a provincial environmental assessment will now be able to follow a streamlined and co-ordinated regulatory process that removes duplication, shortens review times and increases regulatory clarity. This gives project proponents and potential investors confidence and certainty. Decisions on whether to use this approach will be made by the province on a project-by-project basis.
The Impact Assessment Agency of Canada also recently agreed to the Premier’s request for a regional assessment of exploratory oil and gas drilling in Nova Scotia’s offshore area. The intent is to increase regulatory certainty, help protect the environment and improve the efficiency of future project impact assessments for offshore oil and gas projects.
Prime Minister Carney said, “This agreement between Canada and Nova Scotia enables our governments to build big and build fast, together. By cutting red tape and streamlining approvals, we will build major infrastructure projects that power our industries, create thousands of high-paying Canadian jobs, and unlock our full potential as a global clean energy superpower. Together, we’re building Nova Scotia Strong to build Canada Strong.”
Minister of Environment and Climate Change Timothy Halman said, “Now, more than ever, we need to speed up project timelines and provide greater certainty and regulatory clarity to Nova Scotians, communities, businesses and investors, while maintaining our stringent environmental guardrails. This agreement moves us closer to sustainable prosperity and will help advance new clean energy projects, which will help us meet our greenhouse gas reduction targets and achieve net zero by 2050.”
The regional assessment for exploratory oil and gas drilling will incorporate information from one done for Newfoundland and Labrador in 2020 and build on the regional assessment of offshore wind development for Nova Scotia completed in 2025.
On 25 March 2025, Hydro-Quebec announced plans to develop an offshore wind strategy that fosters the industry in Atlantic Canada and the Wind West plan, signalling strong market opportunities for the sector in Nova Scotia.
Nova Scotia and Massachusetts signed an agreement on 4 February 2026 that will see the two jurisdictions working toward Nova Scotia supplying the state with clean offshore wind energy.
Nova Scotia modernised its environmental assessment process in 2025 to support the responsible use and development of its natural resources.
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