Chad Sapieha

As the vital, delicate work of reconciliation moves forward in Canada, financial recompense — known as economic reconciliation — involving partnerships between Canadian businesses and Indigenous communities is beginning to take shape, and it’s set to alter the landscape of Canada’s energy sector.

In Alberta, an agreement between 23 First Nation and Métis communities and Enbridge Inc. has led to a $1.12 billion investment in seven key pipelines moving resources within the province. The deal is a big step towards the communities’ long-term financial sovereignty, providing a source of stable revenue that can be further grown with the future investment opportunities that it will make possible.

“The investment provides the Indigenous peoples who are most impacted by these assets a direct stake,” said Justin Bourque, president of Athabasca Indigenous Investments (Aii), an organization created specifically to manage the deal.

“It also creates accountability for environmental stewardship,” he added. “It positions these communities for long-term success by providing significant economic impact now and for future generations.”

Further west, the new Woodfibre Liquified Natural Gas (LNG) project, which will be powered using hydroelectric energy, is being designed with input and stewardship from local Indigenous communities.

Enbridge is working with Skwxwú7mesh Úxwumixw of the Squamish Nation to safely regulate operations and ensure Indigenous groups see real benefits.

Enbridge holds a 30 percent stake in the Pacific Energy-led project. Kim Brenneis, Enbridge’s director of community Indigenous engagement in Canada, explained the role of the Squamish Nation.

“The Squamish Nation is an environmental regulator on the project,” he said. “It’s a role that was established through the first Indigenous-led environmental assessment in Canada. Woodfibre LNG also has an Impact Benefit Agreement with the Squamish Nation, which creates opportunities in procurement, employment and training, and other economic benefits.” An environmental assessment agreement and certificate developed by the Nation lists as a requirement the ongoing satisfaction of these priorities.

The Alberta government also has a part to play in these partnerships. To that end, the Alberta Indigenous Opportunities Corporation (AIOC) is a first of-its-kind Crown Corporation created by the province’s government to provide Indigenous groups with lower-cost access to capital in economic development projects. It has the capacity to provide up to $1 billion in loan guarantees for Indigenous investment opportunities, helping Indigenous groups achieve meaningful equity.

“More and more corporations are unlocking the value of Indigenous partnerships,” said Chana Martineau, AIOC’s chief executive officer. “It allows energy companies to tangibly demonstrate their commitment to economic reconciliation and position themselves as top employers through the creation of a diverse and purpose-driven workplace. These long-term partnerships also provide financial freedom for Indigenous groups to reinvest in their communities to help bridge the gap in resources seen and experienced every day by Indigenous people across the country.”

Bourque and Brenneis agree. Both men recounted stories of encouraging conversations they’ve had with Indigenous communities. One group noted they plan to use cash flows created by the Athabasca deal to hire teachers and improve education. Other communities intend to buy land and critical infrastructure for further economic growth, and another is interested in improving living standards for community elders.

It’s helping create a sense of unity, too. “We’ve shared our traditional territories for generations,” said Bourque. “Communities that are geographically separated are now quite literally connected by the physical pipes in the ground that intersect our communities’ traditional lands.”

Such partnerships are bound to be beneficial to the country as a whole, making the industry stronger via responsible environmental stewardship and the growth of local economies.

The Indigenous communities say Enbridge is a committed partner. Their leaders generally say th Calgary-based energy transportation company, which owns and operates nearly 40,000 kilometres of pipelines in Canada and the US, has long shown interest in partnering with them. You need the right conditions for these types of partnerships, starting with an alignment of interests,” said Brenneis, explaining that Indigenous communities, private enterprise, and government agencies need to have shared interests as well as respect and trust each other. The Athabasca pipelines deal is an  example of what can happen when everything comes together.

Indeed, Bourque noted that he’s felt “a strong desire at Enbridge organization to have Indigenous inclusion.” This is a key development in the journey toward true economic reconciliation. He said that both the industry and Indigenous communities need to move past historical issues toward mutual respect and trust, as per the Truth & Reconciliation Commission’s Call to Action  number 92, which calls for a commitment to “meaningful consultation, building respectful relationships, and obtaining the free, prior, and informed consent of Indigenous peoples before proceeding with economic development projects.”

This evolution of perspective was a turning point for Bourque. “We were building this trust, shifting from the uncertainty of whether or not we could do it to both sides really starting to believe and trust each other that this was achievable.”

Brenneis is proud of the leadership role his company has taken on the path to economic reconciliation. “Hundreds of people across the company have embraced this,” he said. “There’s a palpable pride. It’s good business, but it’s also the right thing to do. This partnership is part of our journey towards reconciliation, and there’s energy here to do much more.”

Deals such as the Athabasca pipelines and Woodfibre LNG projects are changing the shape of the energy industry in Canada. Bourque notes that he has been contacted by other organizations interested in using AII’s pipeline investment as a kind of blueprint for equity partnerships of their own. What’s more, such partnerships are bound to be beneficial to the country as a whole, making the industry stronger via responsible environmental stewardship and the growth of local economies.

“It’s important to highlight that equity partnerships are not just about the value they create for Indigenous people,” said Bourque. “It’s also about the value they create for Canadians. It might mean that we do things that are a little bit unorthodox. But how we get there is really important.”

Martineau echoes this sentiment. “These partnerships demonstrate how corporations and Indigenous groups can work together,” she said. “Not only in stewarding the environment but also in owning and operating critical energy infrastructure. Partnering with Indigenous communities is rapidly becoming the preferred economic model. You can see a future where this is a table-stakes requirement.”

Chad Sapieha is a writer with the Financial Post.