NORTH VANCOUVER, BC, Feb. 21, 2025 /CNW/ - Indigenous Peoples, communities and businesses are building a more sustainable and resilient natural resource sector in Canada. The Government of Canada is supporting Indigenous participation in the natural resource economy, helping to eliminate historic barriers and open doors for Indigenous groups to share in the economic benefits of resource and energy development.
Today, the Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources, celebrated the launch of the $5-billion Indigenous Loan Guarantee Program while announcing an additional $6.2-million investment in seven Indigenous-led energy and forestry projects in British Columbia through the Indigenous Natural Resource Partnerships (INRP) program.
The Canada Indigenous Loan Guarantee Corporation was launched in December and is open for business, supporting Indigenous groups in benefiting from the economic opportunities of natural resource development. It will provide up to $5 billion in Indigenous loan guarantees to help unlock access to the capital needed for Indigenous groups to pursue ownership in natural resource and energy projects.
Loan guarantees work by providing a guarantee that the debt will be repaid by the guarantor (the federal government) should the borrower be unable to repay, which lowers the interest rate on the loan. Loan guarantees will help enable Indigenous communities and businesses to access private financing and to become meaningful equity partners and owners of natural resource and energy projects.
Indigenous Peoples in Canada are among some of the most innovative leaders in the natural resources sector. The Government of Canada has been promoting the economic participation of First Nations, Métis and Inuit Peoples for years by providing tangible support for Indigenous-led projects. Minister Wilkinson took the opportunity today to also announce additional INRP funding for projects in B.C.
The INRP program is helping Indigenous communities across Canada to secure economic opportunities from projects and become equal partners in the resource economy. With the investments made today, for example, Fort Nelson First Nation in Northern B.C., is developing the Tu Deh-Kah (TDK) project, a 100-percent Indigenous-owned project that will be the first geothermal facility in the province and among the first in Canada. It will power 10,000 homes and create economic opportunity for the community.
There is much more work ahead to ensure that Indigenous Peoples will be equal partners in the development of energy and natural resources in Canada, and the Government of Canada remains committed to doing that work. Through advancing meaningful partnerships with Indigenous groups and enabling the development of innovative natural resource projects, together we are building good projects that will power and supply our communities and produce economic benefits for generations to come.
Quotes
"Today, as we celebrate the launch of the Indigenous Loan Guarantee Program, I want to thank the many Indigenous groups, businesses and organizations that have advocated for this over many years. It is thanks to their advocacy that Indigenous communities will have greater opportunities to build and share in the economic benefits of natural resource and energy development in their own ways and on their own terms. This will create jobs, drive economic growth and wealth, and have lasting impacts for the generations to come."
The Honourable Jonathan Wilkinson
Minister of Energy and Natural Resources
"INRP funding has increased the fluency of our members in climate change causes, impacts and mitigation and adaptation strategies. As a result, FNCI is advancing Indigenous natural resource development opportunities and building the decarbonized economy of the future. This includes enabling the pursuit of equity ownership in renewable energy infrastructure in northwest B.C.; the development of hydrogen and solid carbon manufacturing in the Port of Prince Rupert; and shaping the viability of Indigenous nature-based solutions projects from the Montney Play to the northwest coast. FNCI's partnership with Columbia University is an applied research project intended to activate specific decarbonization opportunities in Asian markets that result in measurable and transparent emission reduction benefits and agreements."
Chief Crystal Smith
First Nations Climate Initiative, Nisga'a, Haisla, Metlakatla, Halfway River First Nations
"The TDK Geothermal Energy Project is a vital step toward energy security and reliability in northeastern BC. Showcasing Indigenous leadership in Canada's geothermal industry, the project is 100-percent owned through Fort Nelson First Nation's economic development arm, Deh Tai LP. We are progressing in project design, permitting, consultation and BC Hydro negotiations. We are proud to lead the way in advancing sustainable, renewable energy solutions for our people and the broader economy."
Jim Hodgson
CEO, Deh Tai Limited
"For generations, Indigenous people have understood how to care for these landscapes, but that knowledge was pushed aside. Now, as we face growing wildfire risks, we're seeing a shift back to the practices that have always worked. This funding allows WLFN to lead the way — training our people, reducing fuel loads and restoring balance to the land. It's a step forward, and there's still more work to do to have a resilient land base."
John Walker
Stewardship Forester, Williams Lake First Nation
Quick Facts
- The Canada Indigenous Loan Guarantee Corporation is a subsidiary of the Canada Development Investment Corporation (CDEV) and was officially launched in the 2024 Fall Economic Statement.
- The number of major natural resource and energy projects with potential for Indigenous equity participation is anticipated to grow significantly, with the First Nations Major Projects Coalition's research expecting this potential to reach $525 billion in capital investment over the next ten years.
- Natural Resources Canada will support eligibility screening and deliver funding to help Indigenous groups obtain advisory services so they can make informed decisions on equity ownership opportunities in natural resource and energy projects.
- Historically, Indigenous Peoples have been excluded from Canada's natural resources sector. For example, due to the Indian Act, Indigenous communities have fewer options for securing capital or leveraging existing assets as collateral, leading to increased borrowing rates that create a barrier to equity investment in natural resource and energy projects.
Associated Links
- Backgrounder: Project Funding Details
- Indigenous Natural Resource Partnerships Program
- The Canada Indigenous Loan Guarantee Corporation
- Finance Canada Backgrounder: Launching the Canada Indigenous Loan Guarantee Corporation
- First Nations Climate Initiative
Follow us on LinkedIn
SOURCE Natural Resources Canada
Contacts: Media Relations, Natural Resources Canada, 343-292-6096, [email protected]; Joanna Sivasankaran, Director of Communications, Office of the Minister of Energy and Natural Resources, [email protected]
Share this article