A new path for a fair energy transition with Indigenous communities

Whether it is Site-C hydroelectric dam in British Columbia or mining stakes in Ontario, First Nations are no stranger to fighting projects that threaten their lands and way of life. 

A new report published Tuesday argues that to better ensure a just transition, Indigenous rights must be respected for the development of sustainable resource projects. 

The report, published by the international organization Business & Human Rights Resource Centre, argues that the inclusion of Indigenous Peoples in the renewable resource economy will help ensure the transition is just, swift and sustainable. Without Indigenous engagement in business practices, including benefits-sharing or equity stakes, development risks legal, social and political conflict. 

“The business-as-usual is slowing things down in the transition,” said Ana Zbona, one of the report’s co-authors. 

Renewable energy companies have “not adopted more progressive visions” for Indigenous rights, she said — instead they’ve repeated the same mistakes of other extractive industries, like mining and fossil fuel development. 

“They have been engaged in dispossession, in land grabs. Very few have Indigenous Peoples policies or sort of have really strong human rights protections in practice, and so, this has led to legal challenges, cancellation etc.,” she said. 

However, Zbona said an alternative vision is possible and happening around the world.

One of those places — in fact, the global leader — is Canada. Freddie Campbell, director of Energy and Climate at Indigenous Clean Energy, says the amount of Indigenous-owned or co-owned renewable energy projects in Canada is “next to none anywhere else in the world.” 

However, it’s still unclear if that is because the bar is low. She notes Australia and Colombia are two countries that need to further grapple with Indigenous self-determination and representation in politics and energy development. 

In Canada, more than one-fifth of renewable energy projects have Indigenous inclusion, with many holding co-ownership stakes. Indigenous Clean Energy authored a case study for the report, highlighting the Dokis First Nation’s Okikendawt run-of-the-river hydro project in Ontario. The First Nation was able to secure 40 per cent ownership. The project created high levels of employment in the community, Campbell said. 

The level of community engagement from leadership to citizens, safeguards for salmon migration and well-informed consent are examples of what the project did well because of Indigenous involvement from the beginning, Campbell said.

“That's something that's not often talked about when we talk about free prior and informed consent: the ‘informed’ part is so important, communities need to have the capacity and the support to even participate in the negotiations of these structures,” Campbell said. 

The report urges business leaders in the renewable sector to work with First Nations to develop strong funding for technical capacity-building for negotiations and consultations, time for informed decision-making and co-development of the project, including an independent impact assessment.

“Imposing something, there's so much that will not work when that happens,” Campbell said. “Why wouldn't you work with the people who are going to be impacted by the project, or the people who know the land and have been living on that land for centuries?”

Projects are likely to be more successful and sustained if Indigenous involvement and rights are respected, she said.

The report suggests several tools to assist businesses working with First Nations, including various forms of agreement. Some nations may prefer different ownership or benefit-sharing models, and financing mechanisms can also vary, including loan guarantees and grants, it notes.

“We need to learn from previous experiences, and also have a wider view of everything that's happening with these multiple policies and programs and massive investment that is expected,” Alancay Morales, one of the report’s co-authors said. 

“We need to put rights at the centre of this.”

Matteo Cimellaro / Canada’s National Observer / Local Journalism Initiative