Utoo Radio with Other News Sources - April 4, 2024 - In a major breakthrough, the First Nations are considering multi-billion-dollar energy projects like pipelines and electricity lines. As stated earlier this year, Prime Minister Justin Trudeau's efforts to streamline finance will determine these investments' success.
The government plans to guarantee Indigenous community loans for major resource projects in the 2019 budget. This strategy empowers Indigenous communities and promotes economic growth.
Indigenous communities can invest in government-owned projects like the Trans Mountain oil pipeline and TC Energy's Coastal GasLink pipeline. Government attempts to reduce greenhouse gas emissions.
Indigenous groups invested in 38 Canadian energy projects in 2022–2024. Fasken legal firm, which was involved in some of these projects, said that they were just disclosed and ranged from C$13 million to C$14.5 billion ($10.69 billion).
Colin Gruending, Enbridge's executive vice-president of liquids, said the corporation would sell Indigenous holdings in various assets, including the Mainline, North America's largest oil pipeline network. Acquisition of Mainline would be complicated by its cross-border existence between Canada and the U.S.
Government guarantee "Being open to all energy is crucial," said Gruending. "In order to engage more nations at a faster pace, it is imperative that we open up."
Katherine Cuplinskas, finance minister spokesman, said the federal budget will update loan guarantee program measures. She declined to discuss the program's cost or oil and gas industry advances.
Alliances with Indigenous communities get energy companies financing and faster project approval from provincial governments, potentially benefiting from First Nations equity.
Niilo Edwards, CEO of First Nations Major Projects Coalition, an Indigenous-owned company assisting First Nations on 17 projects totaling C$40 billion, said a federal loan guarantee would allow First Nations to borrow at favourable rates and make profits.
"Many First Nations communities are being offered significant investment opportunities worth hundreds of millions of dollars, but unfortunately lack the necessary capital," he said.
British Columbia is introducing a provincial guarantee like Alberta, Saskatchewan, and Ontario.
Banks profit from advising and lending to First Nations and energy companies. However, they want a federal promise to enhance funding.
"The implementation of provincial and federal loan guarantee programs, with well-defined parameters, has the potential to significantly accelerate the flow of capital into projects led by Indigenous communities," said Bank of Montreal head of Canadian commercial banking Michael Bonner.
Many resource deals with First Nations communities have focused on renewable energy and electricity.
BC Hydro is in talks with an Indigenous organization to buy a 50% stake in its northwest transmission line development.
Greenwood Sustainable Infrastructure just announced a major renewable energy agreement. The business will invest C$200 million in a Saskatchewan solar farm. Note that Ocean Man First Nation will have a minimum 10% investment in this project.
In 2021, Spanish business EDP Renewables completed a wind farm in Ontario. The Piwakanagan First Nation owned 50.01% of this project. EDP Renewables is working on other Canadian projects and seeking more.
Sandhya Ganapathy, CEO of EDP North America, said First Nations knowledge and support speed projects.
"Canada has caught our attention."
