Wet'suwet'en complaint to bank puts Ottawa on notice over nation-building agenda

National Observer

7 days ago

The Wet'suwet'en Nation has spent years fighting fossil fuel projects that rip through their land in British Columbia without consent. Now, as familiar threats mount, the nation has taken the issue to Tokyo — where a corporate battle could serve as a warning for Prime Minister Mark Carney as he pursues his infrastructure agenda.
Wet'suwet'en hereditary Chief Na'Moks filed a complaint last week with the Japan Bank for International Cooperation's (JBIC) independently appointed environmental examiners — tasked with investigating alleged environmental wrongdoing — detailing environmental harms and human rights abuses from the construction of the Coastal Gaslink project that transports fracked gas from the Montney region in the province's northeast to LNG Canada's export terminal on the coast. The bank loaned US $850 million to the project in 2021.
'Despite the Wet'suwet'en having repeatedly rejected the project, JBIC proceeded to approve financing for the LNG Canada terminal and the associated Coastal GasLink pipeline without securing proper [free, prior and informed consent],' the filing reads.
The filing called the approval without the hereditary chiefs' consent 'a fundamental breach of both Canadian law and international human rights standards.'
The issues raised in the complaint may hinge on actions taken in the past, but as Carney prioritizes major projects in the name of nation-building, the concerns detailed in the filing serve as a warning for the risks ahead, Na'Moks told Canada's National Observer.
'We're living in a petrostate being enforced by a police state,' he said in a phone call from the sidelines of the First Nations major projects summit. 'Everybody goes 'Oh not in Canada.'
'I said, 'Wait until they come through your doors with axes and power saws. Wait until you step outside and have snipers.''
'We're living in a petrostate being enforced by a police state,' Wet'suwet'en Nation Hereditary Chief Na'Moks said. "Wait until they come through your doors with axes and power saws. Wait until you step outside and have snipers.'
At the First Nations summit last week, Carney said no major projects have been finalized and he was there to listen to Indigenous leadership. However, as Canada's National Observer reported, there are more than a dozen megaprojects already under consideration.
Multiple government sources have told Canada's National Observer that an expansion to LNG Canada is very likely to make Carney's list. Ultimately the decision to invest rests with LNG Canada's owners (Shell, Petronas, PetroChina, Mitsubishi and the Korean Gas Corporation), but incentivizing the companies to invest appears to be a major priority for Carney's government.
That's concerning to We'suwet'en hereditary leadership. The complaint filed against JBIC urges the bank to 'immediately suspend any further financing' of the LNG Canada project, including potential expansions.
Na'Moks said his experience watching a major project built through his nation's territory without consent gives him an up-close view to the risks that are now afoot as Ottawa contemplates a renewed push to build.
'We know we were the template for how they're going to protect industry without our approval,' he said.
Battling the banks
As the Coastal Gaslink pipeline was being built four years ago, land defenders from the nation and its allies blockaded roads and set up camp at the Gidimt'en Checkpoint to slow construction and push costs up in a bid to stop the pipeline. Armed RCMP officers hacked through the door of one small cabin to arrest those inside in a dramatic scene captured by photojournalist Amber Bracken and filmmaker Michael Toladano (an event that is now the subject of a lawsuit from Bracken's employer, The Narwhal). Weeks later, more land defenders were arrested at standoffs with police, with several claiming dehumanizing treatment as they were hauled to police headquarters and held in enclosures the size of a 'dog kennel.'
The United Nations Committee on the Elimination of Racial Discrimination said in 2022 it 'profoundly regrets and is concerned' that Canada is forcibly removing Indigenous land defenders from their unceded territory, and the provincial and federal governments have been similarly condemned by leading human rights group Amnesty International.
As the furor around those arrests faded, Wet'suwet'en hereditary leadership continued to fight the pipeline by targeting its financiers. They attended shareholder meetings and confronted bank leadership. Nevertheless, the pipeline was built and the first shipment of LNG from Kitimat departed this summer.
Na'Moks said the nation decided to file a complaint with the JBIC because the bank finances LNG Canada. The bank has environmental and social guidelines to help determine which projects to invest in, but the complaint alleges JBIC failed to meaningfully implement them.
Na'Moks said that filing the complaint is to provide the 'right information' because the reports the bank has received are 'a copy and paste from industry and government.'
'Without the CGL pipeline, the LNG Canada terminal would not be viable; and without JBIC's financing, this export infrastructure system would not have progressed at its current scale,' the complaint reads. 'JBIC's financing played a decisive role in enabling this interconnected system. And by failing to adequately review the impacts of its associated facility, JBIC bears responsibility for contributing to the resulting harm.'
JBIC did not return a request for comment.
De-escalating a fraught situation
LNG Canada's first shipment overseas marks a turning point for the gas sector in Canada. Before the LNG export terminal began sending shipments abroad, 99.9 per cent of Canadian gas exports headed into the United States.
With US President Donald Trump threatening a drawn-out trade war, Carney riding to victory in April's election on a promise to build up Canada's economic resilience, and the fossil fuel industry lobbying for more oil and gas infrastructure, the country is staring down the barrel of a major fossil fuel expansion — including in Kitimat itself.
If LNG Canada Phase 2 is built, expanding export capacity at the site will involve increasing storage tanks, new processing facilities and more tanker traffic through vulnerable coastal waters. But it will also mean increasing the amount of gas fracked in northeastern BC, and sending more gas through the Coastal GasLink pipeline. To do that, additional compressor stations will need to be built to squeeze more gas into the pipeline.
'With more gas flowing you have increased risk,' said Richard Brooks, climate finance director at Stand.earth. To stay onside with UNDRIP, as Carney has committed, communities like the Wet'suwet'en First Nation would have to consent to new facilities like compressor stations being built — otherwise their rights under both Canadian and international law would be violated.
For Brooks, this is a major lesson Ottawa must learn. When Indigenous rights are 'trampled,' opposition to proposed projects skyrocket — and that then impacts the viability of the projects. He pointed to increased legal costs, security costs and lengthy delays that push construction costs higher.
'Indigenous communities have proven time and time again … that they have the power to slow and stop projects from moving ahead,' he said. 'So this is why it's so important to have First Nations involved from the beginning to be proponents of these projects, to have the process be one that is not imposed, but rather is a collaborative process, whatever project it is.'
Carney has said projects will proceed with Indigenous consent, but by putting in place legislation to fast-track projects before securing consent from nations who could be affected, there are plenty of risks ahead, said Senwung Luk, a partner at law firm Olthuis Kleer Townshend LLP, specializing in Aboriginal rights and title and the Crown's fiduciary obligations to First Nations.
Luk said Carney would have been better off starting with a list of projects, and thinking about which nations would need to consent to figure out how to build them — rather than starting with a new law that gives the federal government the ability to bulldoze over concerns.
'It's an odd way to start a conversation, to point a nuclear weapon at the person that you're trying to talk to,' he said.
'If you believe in free, prior and informed consent, you can't only believe in that except for when Indigenous people oppose your project,' he said. 'That wouldn't be any sort of meaningful concept of consent.'