Indigenous partnerships

The opportunity

A core mission of Canada’s federal government is to accelerate the delivery of major projects. Budget 2025 detailed the government’s plans to fast-track nation-building projects while “upholding Indigenous rights and creating opportunities for Indigenous Peoples to derive economic benefits from major project development.”

Building meaningful partnerships with Indigenous communities is crucial to project success in Canada. Indigenous peoples hold rights recognized and affirmed by section 35 of the Constitution Act, 1982. Those rights must be considered as part of project development. Specifically, whenever a government permit or other measure may impact Indigenous rights, the duty to consult arises. Successful consultation and engagement with Indigenous communities is therefore a key driver of project viability.

Offering equity ownership in projects to Indigenous communities is increasingly being used by proponents to garner support for major projects, and reduce risk, by sharing the economic benefits with affected Indigenous peoples. The Canadian government is actively supporting the growth of such equity opportunities, by providing and expanding financing and loan guarantee programs to help Indigenous communities obtain capital to acquire equity ownership in projects. We anticipate that these investment opportunities will continue to grow as large-scale energy, resource, and infrastructure projects continue to be a national priority.

Proponents should consider the potential role of Indigenous equity investment from the outset of the development of a project, as these equity investments can be critical to successful project development. Doing so creates opportunities and generates economic benefits for Indigenous communities, and enables long-term, mutually beneficial partnerships.

Key considerations in Indigenous equity partnerships

Proponents should consider the following key considerations when structuring Indigenous equity partnerships:

Equity split. There is no “one size fits all” model for Indigenous equity partnerships. The structure and equity split must fit the circumstances of the project, and will differ depending on a variety of factors, including the nature and scale of the project, economics, and the priorities of the parties. Importantly, in these partnerships, governance rights may be aligned with, or may differ considerably from, the equity split between or among the parties.

Alignment through governance. Governance rights in Indigenous equity partnerships are often heavily negotiated. A balance may need to be struck between proponents wanting to retain operational control of the project, and the Indigenous groups involved, who (similarly to any other investor acquiring an equity interest in a project) may expect voting rights on major decisions, proportionate to the overall equity interest being acquired, or focused on key decisions affecting their rights and interests. Proponents will want to understand the scope of governance rights that are expected. For Indigenous communities, the governance framework implemented through equity ownership can also provide Indigenous partners with influence over business decisions that impact them and community members, and the opportunity to influence and profit from project development.

It is important for proponents to consider how they will achieve alignment with their Indigenous equity partners on the project development and operations, whether through offering enhanced information reporting rights over the life of the project to the Indigenous partner, providing for an Indigenous advisory committee on the project, or otherwise.

Capital funding 

• Creativity is often required in considering how capital funding will be addressed over the life of the project, given that access to capital can be a barrier to Indigenous economic participation. For example, in addition to the initial equity investment, proponents should consider how capital will be funded, and identify appropriate remedies in the event that an equity partner, including an Indigenous equity partner, fails to fund the same. Creative solutions may include
  • treating capital calls for maintenance capital differently from capital calls for growth capital, where equity partners (including Indigenous equity partners) may want more flexibility on the ability to opt in to growth projects, depending on the overall capital commitment of the same;
  • providing for longer capital call periods to ensure Indigenous equity partners have sufficient time to raise third-party financing if required;
  • providing for mechanisms whereby the proponent funds all or a portion of the Indigenous partner’s capital calls on the Indigenous partner’s behalf, in the event that the Indigenous partner is unable to fund the same by way of a low-interest loan that could be paid back via distribution sweeps, dividends, or similar funding mechanics; and/or
  • providing for a reserve fund to provide for a buffer against potential future capital call requirements.
  Such solutions will need to be considered in contemplating the underlying project’s overall economics and whether they adversely impact cash flow expectations for the partners (which, for Indigenous partners, will often include a cash flow expectation that is at least sufficient to service the debt for any financing arranged as part of the initial equity investment).
• In negotiating equity arrangements, proponents should be mindful of culturally respectful ways to engage Indigenous communities, often outlined in community-specific protocols or traditional laws. Adhering to those methods of engagement helps build the trust and respect crucial to a successful partnership.

Government initiatives supporting Indigenous equity partnerships

The following are the key initiatives recently announced by the Government of Canada that are targeted at supporting the growth of Indigenous equity ownership opportunities in future infrastructure projects:

Major Projects Office

Canada’s Major Projects Office (MPO) was launched in August 2025 to accelerate nation-building infrastructure projects. It includes the creation of the Indigenous Advisory Council (IAC). The members of the IAC are from First Nations, Inuit, and Métis communities, and include Historic Treaty, Modern Treaty, and Self-Governing communities. The IAC advises the MPO to create opportunities for equity ownership and meaningful participation with Indigenous communities.

To date, several projects have been referred to the MPO that include Indigenous groups or territorial governments as proponents, or that involve significant Indigenous equity participation opportunities. For example, the North Coast Transmission Line in British Columbia has been referred to the MPO and is being advanced with a novel partnership model that would result in First Nations co-owning the transmission lines with BC Hydro.

Financing and investor support

The following financing, funding and loan guarantees that support Indigenous investment are available for major and nation-building projects:

The federal government has doubled the Indigenous Loan Guarantee Program (ILGP) from $5 billion to $10 billion to enable more Indigenous communities to become equity owners in major projects.

The Canada Infrastructure Bank has a target to invest at least $3 billion in revenue-generating Indigenous infrastructure projects in priority sectors, including clean energy, trade and transportation, and digital infrastructure and AI.

Industry-specific funding support is available. For example, the federal Critical Minerals Infrastructure Fund provides contribution funding for up to 75% of eligible expenses for “Arctic, Northern and Indigenous-led projects.”

Financing support is available provincially. The $3-billion Alberta Indigenous Opportunities Corporation (AIOC) supports Indigenous investment in natural resources and transportation, among other sectors. Ontario’s Indigenous Opportunities Financing Program (IOFP) provides financial guarantees on credit products (such as loans and bonds) to enable Indigenous partners to purchase equity in eligible energy and resource development projects.

All dollar amounts in this primer are C$ unless indicated otherwise.