Indigenous equity ownership saw momentum in 2024, but still more work to do
When electric utility BC Hydro launched a procurement process earlier this year seeking new sources of clean energy for the province's power grid, it included a specific requirement: projects must be at least 25 per cent owned by First Nations.
The procurement was BC Hydro’s first competitive request in more than 15 years, and the utility ended up receiving proposals for three times more energy than it was targeting. It plans to announce the successful proponents by the end of the year.
BC Hydro's power program, and its decision to mandate First Nations equity ownership requirements, was just one of a series of milestones achieved this year on the road to improved economic participation by Canada's Indigenous people.
Other major achievements in 2024 included a positive final investment decision by the proponents of Cedar LNG, a US$4-billion liquefied natural gas terminal being built off the coast of B.C. The facility will be majority-owned by the Haisla Nation, making Cedar LNG the largest Indigenous-owned infrastructure project in Canada.
The year also saw the announcement of a $1-billion agreement that would see TC Energy Corp. sell a minority stake in its Western Canadian natural gas transmission network to a consortium of Indigenous communities. Though the deal hit a snag due to what TC Energy called a "transaction structuring issue" and has not yet closed, it could be the largest-ever Indigenous equity agreement in Canadian history.
"It certainly has been a good year, and it has also given us as Indigenous people a lot of hope about the future, especially going into 2025," said Sharleen Gale, chair of the First Nations Major Projects Coalition and a former Chief of the Fort Nelson First Nation in B.C.
"I really hope that in 2025 we're going to see huge progress."
Historically, some of Canada's largest infrastructure projects — from mines to pipelines to power generating facilities — have been built on Indigenous territory.
While corporations have begun to recognize that Indigenous communities deserve to benefit from projects on their lands, in recent years these benefits have typically come in the form of construction jobs or procurement opportunities and have fallen short of offering Indigenous people a full equity stake.
That is starting to change, though.
Indigenous communities across Canada are showing growing interest in acquiring equity positions in major projects and infrastructure as a way to generate revenue and economic opportunity for their people.
The interest in equity ownership comes at a time when Canada has committed to reconciliation with Indigenous people, a commitment that includes the recognition of Indigenous people’s right to economic self-determination. And corporations themselves are recognizing the benefits from such deals, as securing the support and consent of Indigenous communities is increasingly essential for the construction and operation of major projects.
"(Equity ownership) is very widely recognized as the next evolution in relationships between Indigenous communities and the operators that operate in their traditional territories," said Justin Bourque, president of Athabasca Indigenous Investments, a partnership of 23 northern Alberta Indigenous communities who came together in 2022 to purchase an 11.57 per cent stake in seven pipelines operated by Enbridge Inc.
"We still see a focus on respecting rights and providing access to procurement opportunities and jobs and employment and training, and that doesn’t go away now that we’re talking equity in addition. But Indigenous communities are looking to be part owners in the future as we continue to develop Canada,†Bourque said.
According to law firm Fasken, which has been tracking announcements of Indigenous equity investments in energy and related infrastructure projects in Canada, the last two years have seen a dramatic uptick in the number of deals struck. The law firm has reviewed 135 energy and related infrastructure projects over the past 15 years that are partially or wholly owned by Indigenous people. Twenty-eight per cent of those Indigenous equity investments occurred in the last two years alone.
Historically, one of the biggest barriers preventing Indigenous partners from pursuing equity ownership has been a lack of access to capital, said Vancouver-based Amy Carruthers, regional leader of Fasken's global energy group. Canada's Indian Act prohibits First Nations from using their land as collateral, meaning Indigenous communities struggle to access competitive interest rates through mainstream capital markets.
Government-backed loan guarantees, like the ones that have been offered in Alberta since 2020 through a provincial Crown corporation called the Alberta Indigenous Opportunities Corp., have helped increase the number of deals in recent years.
"Access to capital has really been the biggest nut to crack," Carruthers said, adding the new federal loan guarantee program announced earlier this year will likely lead to a bump in project announcements, but additional financing options will be required if First Nations are to take on ever-larger shares of project ownership.
"Alternative sources of financing need to become available through private means and otherwise to help supplement what the government programs are already putting in place," she said.
James Jenkins, executive director at the non-profit Indigenous Clean Energy, said the number of wind, solar and other forms of clean energy projects across Canada that have some level of Indigenous equity ownership has increased by about 30 per cent annually since 2020.
There are now about 600 medium- to large-scale renewable energy projects in Canada with Indigenous equity participation, and the number could grow significantly in the coming years as the clean energy transition ramps up. That's why it's important to keep recent momentum going, he said.
"There's a significant amount of work to be done if we want to see that same level of participation moving into this era of increased energy demand," Jenkins said.
"We need to do what we can to continue to increase the capacity and leadership development of Indigenous communities and businesses so that they are ready for this large wave of projects that's coming."
This report by The Canadian Press was first published Sept. 25, 2024.
IN DEPTH
Jagmeet Singh pulls NDP out of deal with Trudeau Liberals, takes aim at Poilievre Conservatives
NDP Leader Jagmeet Singh has pulled his party out of the supply-and-confidence agreement that had been helping keep Prime Minister Justin Trudeau's minority Liberals in power.
'Not the result we wanted': Trudeau responds after surprise Conservative byelection win in Liberal stronghold
Conservative candidate Don Stewart winning the closely-watched Toronto-St. Paul's federal byelection, and delivering a stunning upset to Justin Trudeau's candidate Leslie Church in the long-time Liberal riding, has sent political shockwaves through both parties.
'We will go with the majority': Liberals slammed by opposition over proposal to delay next election
The federal Liberal government learned Friday it might have to retreat on a proposal within its electoral reform legislation to delay the next vote by one week, after all opposition parties came out to say they can't support it.
Budget 2024 prioritizes housing while taxing highest earners, deficit projected at $39.8B
In an effort to level the playing field for young people, in the 2024 federal budget, the government is targeting Canada's highest earners with new taxes in order to help offset billions in new spending to enhance the country's housing supply and social supports.
'One of the greatest': Former prime minister Brian Mulroney commemorated at state funeral
Prominent Canadians, political leaders, and family members remembered former prime minister and Progressive Conservative titan Brian Mulroney as an ambitious and compassionate nation-builder at his state funeral on Saturday.
Opinion
opinion Don Martin: Gusher of Liberal spending won't put out the fire in this dumpster
A Hail Mary rehash of the greatest hits from the Trudeau government’s three-week travelling pony-show, the 2024 federal budget takes aim at reversing the party’s popularity plunge in the under-40 set, writes political columnist Don Martin. But will it work before the next election?
opinion Don Martin: The doctor Trudeau dumped has a prescription for better health care
Political columnist Don Martin sat down with former federal health minister Jane Philpott, who's on a crusade to help fix Canada's broken health care system, and who declined to take any shots at the prime minister who dumped her from caucus.
opinion Don Martin: Trudeau's seeking shelter from the housing storm he helped create
While Justin Trudeau's recent housing announcements are generally drawing praise from experts, political columnist Don Martin argues there shouldn’t be any standing ovations for a prime minister who helped caused the problem in the first place.
opinion Don Martin: Poilievre has the field to himself as he races across the country to big crowds
It came to pass on Thursday evening that the confidentially predictable failure of the Official Opposition non-confidence motion went down with 204 Liberal, BQ and NDP nays to 116 Conservative yeas. But forcing Canada into a federal election campaign was never the point.
opinion Don Martin: How a beer break may have doomed the carbon tax hike
When the Liberal government chopped a planned beer excise tax hike to two per cent from 4.5 per cent and froze future increases until after the next election, says political columnist Don Martin, it almost guaranteed a similar carbon tax move in the offing.
CTVNews.ca Top Stories
Tropical Storm Helene strengthens as hurricane warnings cover parts of Florida and Mexico
Tropical Storm Helene was rapidly strengthening in the Caribbean Sea and expected to become a hurricane Wednesday while moving north along Mexico's coast toward the U.S., prompting residents to evacuate, schools to close and officials to declare emergencies in Florida and Georgia.
NEW Mortgage changes: Cheaper entry into housing market at steeper costs
Mortgage rule changes allow easier entry into the housing market with lower monthly payments, but also an increased cost of repaying a mortgage.
DEVELOPING Hezbollah fires a missile at Tel Aviv in deepest strike yet after Israel bombardment in Lebanon
Hezbollah hurled dozens of projectiles into Israel early Wednesday, including a missile aimed at Tel Aviv that was the militant group's deepest strike yet and marked a further escalation after Israeli strikes on Lebanon killed hundreds of people.
Coverage denied: Canadians hitting roadblocks with insurers after installing solar panels on their homes
More Canadians are installing solar panels on their homes, but some are facing challenges when it comes to getting home insurance after the panels are put in.
EXCLUSIVE Image released of mysterious object shot down over Yukon in 2023
An image of the unidentified object shot down over Canada's Yukon territory in February 2023 has been obtained by CTVNews.ca.
Liberal government has 'no intention' of pausing next carbon tax increase, Guilbeault says
The federal government has 'no intention' of pausing the next planned increase to the carbon price, Environment Minister Steven Guilbeault confirms.
Haitian group in Ohio files citizen criminal charges against Trump and Vance
The leader of a nonprofit representing the Haitian community invoked a private-citizen right to file charges Tuesday against former U.S. president Donald Trump and his running mate, JD Vance, over the chaos and threats experienced by Springfield, Ohio, since Trump first spread false claims about legal immigrants there during a presidential debate.
A team at the University of Waterloo are developing a process to 3D-print bones, which could dramatically improve the quality of life for cancer and trauma patients.
A city councillor in British Columbia says an online mob of "extremists" and "politically motivated hackers" is responsible for uncovering and publicizing a photo of him wearing a blackface costume to a Halloween party in 2007.
Local Spotlight
Police are looking to the public for help after thieves broke into a Lethbridge ice creamery, stealing from the store.
An ordinary day on the job delivering mail in East Elmwood quickly turned dramatic for Canada Post letter carrier Jared Plourde. A woman on his route was calling out in distress.
Fire has destroyed a barn and 17,000 plants at a family-owned business in Lower Coverdale, N.B.
Before influencers on social media, Canada’s Jeanne Beker was bringing the world of high fashion down to earth and as Calgary’s Glenbow Museum gets a major make-over, it will include a new exhibition showcasing the pop culture icon.
A sea lion swam free after a rescue team disentangled it near Vancouver Island earlier this week.
A Nova Scotian YouTuber has launched a mini-truck bookmobile.
Cole Haas is more than just an avid fan of the F.W. Johnson Wildcats football team. He's a fixture on the sidelines, a source of encouragement, and a beloved member of the team.
Getting a photograph of a rainbow? Common. Getting a photo of a lightning strike? Rare. Getting a photo of both at the same time? Extremely rare, but it happened to a Manitoba photographer this week.
An anonymous business owner paid off the mortgage for a New Brunswick not-for-profit.