Indigenous Participation in Clean Energy Projects

Renewable energy capacity and energy efficiency continue to improve in Canada. What happens when Indigenous groups get involved?

People biking on Dorset Island

Indigenous participation is on the rise

Indigenous communities are now the third-largest owner of clean energy assets in Canada after Crown and private utilities.

According to Indigenous Clean Energy, there were over 2,000 Indigenous clean energy projects across Canada in 2019. Almost 200 were medium- to large-sized projects (they produce at least one megawatt). And Indigenous partners are taking on more equity in these projects: On average, Indigenous communities own a 45% share of the projects they’re involved in.

Why Indigenous participation is important

Indigenous groups have multiple, and sometimes overlapping, motivations for participating in projects on or near their territory. Autonomy is a key motivator—whether it be energy, economic, or socio-political autonomy.

Participating in the clean energy economy can have many benefits for Indigenous communities:

  • Energy sources that are reliable, non-polluting, and sustainable
  • Savings on energy costs and potential for revenue
  • Affirmation of Indigenous Rights through project leadership

But we know that challenges are also part of the story:

  • Access to capital is a hurdle
  • Changes in governments can disrupt momentum
  • Consensus within communities can be difficult to reach, and differing opinions can create divisions

What can help

Supportive government policies

Many provinces and territories have policies to support community-based energy projects. These policies encourage or require Indigenous participation in projects to promote economic development, contribute to reconciliation, and reach climate targets.

For example, the First Nations Clean Energy Business Fund in B.C. provides equity and capacity funding to help First Nations participate in the clean energy sector.

Recognition of Indigenous Rights and Title

Indigenous Rights are increasingly part of the decision-making processes surrounding major projects.

Recent legal decisions that recognize Indigenous Rights and Title give Indigenous communities more influence over their economic future.

Connecting to health and well-being

We know that the conditions of daily life—such as food security, access to healthcare, and exposure to racism—ultimately affect our health. These factors interact with one another and influence our behaviours.

Many communities say that owning or partnering on clean energy projects is good for their economic and social health. Policy-makers, governments, and Indigenous leaders are particularly interested in knowing whether these projects have tangible health and well-being benefits for Indigenous communities.

Close up view of Indigenous youth

Environmental stewardship

Indigenous respondents to a national survey reported an interest in clean energy projects because their sustainable nature aligns with traditional cultural values.

For instance, the community of Teslin, Yukon, found a biomass energy project could help the local economy without compromising the integrity of the land. The community used local knowledge to inform project decisions, ensuring their operations would steward, rather than harm, the forests.

Income

Projects can generate revenue for communities, which they can re-invest into community priorities.

For example, the Listuguj Mi’gmaq government invested revenues from a large-scale wind farm toward youth services, including an arena and a language immersion program.

Employment

Clean energy projects provide significant job opportunities during the construction phase and, to a lesser extent, the operation phase.

New businesses often emerge to support the project—such as a catering company to feed construction workers—which continue after the project ends. Work experience and training builds transferrable skills for future roles.

Self-determination

Many Indigenous leaders report that their participation helped to affirm their rights and territory and strengthened community pride.

Community-led projects can bring changes to factors like employment and income, which can have positive impacts on sovereignty and community agency.

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