Canada’s electricity system needs to centre Indigenous communities as it transforms to address climate change, says a First Nations non-profit that is spearheading efforts to remove the regulatory, political, and economic barriers to Indigenous-led energy development.
An Indigenous electrification strategy unveiled last month by the First Nations Major Projects Coalition (FNMPC) outlines [pdf] a plan for positioning Indigenous nations as leaders of Canada’s net-zero transition, reports Windspeaker.
Canada’s grid will need to substantially expand in the coming years to meet rising demand, FNMPC CEO Niilo Edwards told a conference in Toronto. “We found some very constructive and helpful avenues to go down to ensure, as we look to electrify Canada and the infrastructure that is required, that we can do it with full Indigenous participation.”
Until now, Canada’s energy framework has been built “without the participation of Indigenous nations in mind,” Edwards added. “We have to start changing that. And we are.”
But “when you compare the steps taken against the goals that Canada and the rest of the world have set on a net-zero transition and electrifying the country, we’re not moving fast enough.”
The country’s electrification relies on lands and resources to which Indigenous nations hold rights, FNMPC writes in the strategy document. “As the required build-out of electricity infrastructure unfolds, Indigenous nations in Canada—already the third largest collective owners of clean energy assets across the country, after governments and utilities —expect to be full economic beneficiaries of electrification.”
Which means “the road to net-zero in partnership with Indigenous nations must include Indigenous consent, Indigenous governance, and options for Indigenous ownership in projects.”
The document outlines key considerations for removing barriers—such as regulatory obstacles and limited access to capital—that hinder Indigenous-led projects. For instance, Section 89 of the Indian Act prevents First Nations from using assets “situated on a reserve” as collateral for financing, making it harder to secure loans.
Among the most critical challenges to overcome is Indigenous nations’ “wheeling access,” or retail access to transmission and distribution infrastructure. Most Indigenous communities do not have wheeling access—despite the transmission lines running through their lands—which is essential for them to be able to produce and sell electricity.
Grid operators will also have to reconsider the way electricity is priced, and how energy affordability is balanced against reconciliation, says FNMPC, a group that represents more than 160 First Nations members and is more often seen weighing in in favour of large oil and gas projects. The strategy calls for higher electricity prices to better reflect the compensation owed to Indigenous people for their lands.
“Electricity has been largely generated on the backs of our communities,” said JP Gladu, founder and CEO of Indigenous-owned consultancy Mokwateh. “It’s a really difficult conversation to have with taxes and carbon taxes and inflation and the cost of living.”
But “Canadians have enjoyed the low cost of energy because of our territories,” Gladu said. “That’s just kind of the way it is because we have been enjoying the low costs for a while. But we need that energy, we need to meet the transmission demands, and it’s going to cost.”
FNMPC says the net-zero transition presents a unique opportunity to address both the urgency of the climate crisis and the need for Indigenous reconciliation, through Indigenous equity ownership of the infrastructure that enables energy and climate solutions. “In this way, the urgent need for the world, including Canada, to decarbonize our energy systems and Indigenous reconciliation are one and the same.”
