“Victory comes from finding opportunities in problems.” - Sun Tzu, The Art of War
On January 21, 2025, U.S. President Donald Trump signed an executive order halting all new or renewed offshore wind energy leases on the Outer Continental Shelf (OCS). This decision, which also paused federal approvals, permits, and loans for both onshore and offshore wind projects has sent ripples through the U.S. renewable energy industry. While the move is seen as a setback for U.S. offshore wind development, it presents a significant opportunity for Canada’s burgeoning marine renewables sector.
A “Strategic” Shift in U.S. Policy
The executive order indefinitely withdraws all areas of the OCS from consideration for wind energy leasing until a “comprehensive review of federal leasing and permitting practices is completed.” Existing leases remain valid but are subject to scrutiny and potential amendments or termination. A quick glimpse at the Trump administration’s website[1] dubiously states the rationale to be, “concerns over environmental impacts, economic costs of intermittent electricity generation, and the effects of subsidies on the wind industry.”
This policy aligns with President Trump’s broader push to bolster oil and gas drilling while effectively halting renewable energy expansion. The intended effect creates uncertainty for developers and investors in the U.S. offshore wind market, which currently boasts nearly 65 gigawatts of capacity in development—enough to power 26 million homes[2]. Thus, this abrupt policy shift has left many industry players searching for more stable investment environments - enter Atlantic Canada.
Canada: A Safe Harbour for Marine Renewables?
Canada’s marine renewables sector stands to gain from this U.S. policy shift. With a stable regulatory environment[3] and significant investments in offshore wind and tidal energy, Canada is well-positioned to attract developers seeking alternatives to the U.S. market.
In September 2024, Nova Scotia passed the Advancing Nova Scotia Opportunities Act (Bill 471), expanding the mandate of the offshore petroleum board to include renewable energy regulation and thus accelerating offshore wind development. The Federal government passed mirror legislation a month later giving regulatory certainty to the industry. This legislative move underscores Canada’s commitment to fostering a robust marine renewables industry[4].
On the advocacy side, Canada’s Ocean Supercluster (OSC) has set ambitious goals under its "Ambition 2035" initiative, aiming to quintuple the country’s ocean economy by 2035. This includes growing Canada’s ocean-related GDP from $39 billion in 2019 to $220 billion by 2035[5]. Key players like the Fundy Ocean Research Centre for Energy (FORCE) and COAST (Centre for Ocean Applied Sustainable Technologies) are already driving innovation in tidal energy and other marine technologies.
Global Winds of Change
The global offshore wind industry is experiencing unprecedented growth, with investment reaching a record $76.7 billion in 2024—a 79% increase from the previous year. This surge reflects strong international demand for renewable energy solutions[6]. As Canada ramps up its offshore wind initiatives, it is poised to capture a larger share of this booming market.
With competition essentially drying up stateside, Atlantic Canadian-based operators will now have less competition when securing robust supply chain networks that can be repurposed for renewable energy projects. Sourcing wind turbine components such as rotor blades, nacelles, gearboxes, and control systems will become easier.
Canada’s Atlantic coast offers vast wind resources and an inviting bathymetry allowing for transmission line installation. Supported by skilled labour and infrastructure inherited from decades of oil and gas operations, there is a robust and existing workforce whose skillsets transfer seamlessly from one energy sector into marine renewables.
Long-Term Implications
While Trump’s executive order creates immediate challenges for U.S. offshore wind developers, it also highlights the long-term resilience of renewable energy industries.
Offshore wind projects typically operate on decade-long timelines, making them less susceptible to short-term political shifts.
For Canada, this moment represents a strategic opportunity to solidify its position as a global leader in marine renewables. By creating a stable investment environment, leveraging its natural resources and bountiful marine talent, Canada can attract international developers and accelerate its transition to clean energy.
As Sun Tzu wrote in The Art of War, “Victory comes from finding opportunities in problems.” For Canada’s marine renewables sector, Trump’s “drill baby drill” policy may prove to be just such an opportunity—a chance to turn geopolitical challenges into economic and environmental gains.
To learn more about turning challenges into opportunities click here.
Daniel J Baugh
Content Creation Specialist
Enginuity Inc.
www.enginuityinc.ca
dbaugh@enginuityinc.ca
[1] https://www.whitehouse.gov/presidential-actions/2025/01/temporary-withdrawal-of-all-areas-on-the-outer-continental-shelf-from-offshore-wind-leasing-and-review-of-the-federal-governments-leasing-and-permitting-practices-for-wind-projects/
[2] https://apnews.com/article/wind-energy-offshore-turbines-trump-executive-order-995a744c3c1a2eddb30cacf50b681f13
[3] https://cnsoer.ca/
[4] https://www.rivieramm.com/news-content-hub/news-content-hub/trump-administration-pauses-offshore-wind-leasing-and-permitting-83600
[5] https://oceansupercluster.ca/wp-content/uploads/EN_OSC-Ambition-2035-1-1.pdf
[6] https://www.rivieramm.com/news-content-hub/news-content-hub/trump-administration-pauses-offshore-wind-leasing-and-permitting-83600