Canada's Approach to Community Ownership in Clean Energy Projects

Canada is advancing its clean energy transition by actively promoting Indigenous community ownership in renewable energy and infrastructure projects. This approach not only fosters economic reconciliation but also ensures that Indigenous communities are integral partners in the nation's sustainable development efforts.

In February 2025, the Canadian government launched the Canada Indigenous Loan Guarantee Program (ILGP), providing up to C$5 billion in loan guarantees. This initiative aims to assist Indigenous communities in acquiring equity stakes in natural resource and energy projects, thereby overcoming historical financial barriers to participation. By guaranteeing loans, the program enables Indigenous groups to access capital at competitive rates, facilitating meaningful ownership and control over projects that impact their lands and economies.

Beyond financial mechanisms, Canada emphasizes collaborative partnerships between Indigenous communities and project developers. Organizations like the First Nations Major Projects Coalition (FNMPC) play a pivotal role in advising Indigenous groups on engaging with developers to secure ownership stakes in energy transition projects, including solar farms and mineral mines. Such collaborations not only expedite project approvals but also ensure that communities benefit directly from the developments.

Additionally, initiatives like the Indigenous Clean Energy (ICE) social enterprise provide capacity-building programs, such as the 20/20 Catalysts Program, to empower Indigenous leaders with the skills and knowledge necessary to lead clean energy projects. These programs support communities in project planning, development, and management, fostering self-reliance and sustainable growth.

Canada's legal landscape has evolved to support Indigenous participation in resource development. Supreme Court decisions have established the duty to consult and accommodate Indigenous peoples, reinforcing their rights in project planning and execution. Furthermore, Canada's adoption of the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) in 2021 underscores its commitment to upholding Indigenous rights, including free, prior, and informed consent (FPIC) for projects affecting their territories.

A tangible example of Indigenous-led clean energy development is the Fort Chipewyan Solar Farm in Alberta. Owned by the Athabasca Chipewyan First Nation, Mikisew Cree First Nation, and Fort Chipewyan Métis Local 125, this project has significantly reduced the community's reliance on diesel fuel by supplying approximately 25% of its energy needs through solar power. The success of this initiative demonstrates the potential of Indigenous ownership in achieving environmental sustainability and energy independence.

Canada's approach to integrating Indigenous communities into clean energy projects through ownership, capacity building, and legal support serves as a model for equitable and inclusive development. By ensuring that Indigenous peoples are not only stakeholders but also decision-makers, Canada is fostering a more just and sustainable energy future.