Latest news with #IndigenousLoanGuaranteeProgram
Hamilton Spectator
29-07-2025
- Business
- Hamilton Spectator
BC LNG project divides Indigenous nations, risks financial and environmental harm
A long-delayed and controversial liquefied natural gas (LNG) pipeline and export terminal in northern British Columbia is now officially back on track and promoted as a new opportunity for Indigenous economic development. However, a report released last week warns that the risks — to land, community and even investors — are far greater than the promised benefits. The Prince Rupert Gas Transmission (PRGT) pipeline and Ksi Lisims LNG terminal are poised to export up to 12 million tonnes of LNG annually, much of it destined for Asian markets. The pipeline's route cuts through Gitxsan and Tsimshian territories, but many hereditary leaders and community members remain opposed. Janna Wale, who is a Gitxsan community member and co-author of the new Yellowhead Institute report said the dominant narrative portraying LNG projects as straightforward economic opportunities overlooks significant realities. 'There's been one kind of narrative presented — economic growth is good and LNG equals opportunity. But there are trade-offs and checks and balances. It's important to include those in the conversation,' Wale said. Financial risk stands out as a core issue for Indigenous communities being drawn into the project as equity investors, joint venture partners or through procurement contracts. Hayden King, executive director of the Yellowhead Institute, said these communities also bear the greatest risks if things go wrong. Few long-term shipper contracts have been signed, forcing the project to depend on the volatile spot LNG market, where global competition is fierce and prices are unpredictable. The report highlights that Japan and South Korea — key prospective markets for BC LNG exports — are already experiencing surpluses. 'Given the glut in the LNG market, where is this going to be sold, to which market and how is it going to get there? Those answers are not yet clear and so that presents a risk to those in it, and then those that are impacted by it,' King said. Emily Lowan, who co-authored the financial risk analysis for the report, said typically, 80 per cent of a project's funding comes from loans and 20 per cent from direct investment. With this setup, sharing the equity portion equally between two parties (Western LNG and the Nisga'a Nation) means each party must directly invest 10 per cent. 'Equity owners are paid after lenders, which means they are financially vulnerable if a project defaults or does not result in projected returns,' Lowan said. While Ottawa's $10 billion Indigenous Loan Guarantee Program is seen as proof that the government wants Indigenous communities to have a real share in these projects will offer some financial cushion, Lowan said the program does not cover lost revenue if profits fall short or shield nations if a commercial partner collapses. Lowan said at the time the report was written, no loan guarantee programs protected the full corporate debt exposure. With project costs for the PRGT soaring and on track to reach $30 billion as outlined in the report, a hypothetical $3 billion equity stake for the Nisga'a Nation would absorb nearly 30 per cent of Canada's Indigenous loan guarantee fund. If costs overrun — as seen in previous megaprojects — lenders may demand more equity or refuse additional financing, potentially triggering defaults, she said. The report highlights how the floating LNG terminals and associated infrastructure will threaten marine ecosystems through dredging that destroys coral reefs and oyster beds, underwater noise pollution and shipping operations that produce significant greenhouse gas emissions. 'It really is a watershed of impacts. When you start to impact one part of that system, the rest of the ecosystem will be impacted as well. These cascading effects are especially concerning as climate change stresses these environments,' Wale said. The pipeline crosses two of British Columbia's largest salmon-producing river systems, requiring clear-cutting through major waterways and drilling beneath critical spawning habitats. Wale warned the pipeline will bisect important salmon runs, huckleberry patches and moose habitat critical to Indigenous food security and cultural practices. Despite this, the pipeline's approval relies on a permit granted in 2014. In June, British Columbia's Environmental Assessment Office ruled construction was 'substantially started,' allowing developers to move forward without a new review. This permit bypasses contemporary environmental standards, even as climate impacts worsen — raising concerns among conflicting Indigenous voices. Socially, resource hub towns such as Terrace are expected to face higher housing and food costs and overwhelmed health services. 'There will be 1,200 people in a man camp just a kilometer away … our health care system here is hanging on by its threads, and we're going to be bringing in over 1,000 workers into a tiny community,' said Gina Mowatt, a Gitxsan member. The influx of transient workers in 'man-camps' also raises worries about increased risks of sexual violence toward Indigenous women, a pattern linked to such developments. Beyond these risks, the report details uncertainty linked to BC's shifting LNG policy. The 2024 commitment to 'net-zero ready' LNG projects by 2030 still allows ongoing fossil gas use if electricity isn't yet available, meaning emissions will persist and put additional strain on local environments. While the Nisga'a Nation has actively invested in and supported the project, many hereditary leaders and community members of the Gitxsan and Tsimshian nations oppose it, asserting they never gave free, prior and informed consent. King warned that this dynamic revives a colonial 'divide and develop' tactic that pits Indigenous Nations against one another. 'There are plenty of opportunities for First Nations to negotiate with BC or Ontario or Canada, but fewer opportunities for nations to negotiate and undertake this type of diplomacy amongst themselves and I think that's by design,' he said. 'I don't think Canada wants nations to be working together. I think they want them to be divided.' He said the governments and corporations cultivate division by labeling communities that support resource development as 'the good Indians' while portraying resisting groups as 'the bad Indians.' This 'cleavage that's created and cast,' King said, mainly benefits external actors and undermines Indigenous governance, long-standing diplomatic relations and collective power. He said the approval process itself risks deepening these divisions by advancing consultation and consent with only select Indigenous groups, while excluding others is further fracturing Indigenous unity. Mowatt frames the conflict as a struggle between Indigenous communities and external actors, rather than a dispute within Indigenous nations. '[Instead] the war is against PRGT; the war is against these massive international corporations that are coming into our territory, every intention to destroy our lives here,' Mowatt said. As the project moves forward amid fractured consent and complex risks, the social and environmental stakes continue to weigh on the communities whose lives and lands intersect with the pipeline's path. 'We need the whole picture … it's about the legacy left for future generations, and who actually gets to decide what that legacy will be,' Wale said. Sonal Gupta / Local Journalism Initiative / Canada's National Observer Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy . This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Want more of the latest from us? Sign up for more at our newsletter page .
National Observer
28-07-2025
- Business
- National Observer
BC LNG project divides Indigenous nations, risks financial and environmental harm
A long-delayed and controversial liquefied natural gas (LNG) pipeline and export terminal in northern British Columbia is now officially back on track and promoted as a new opportunity for Indigenous economic development. However, a report released last week warns that the risks — to land, community and even investors — are far greater than the promised benefits. The Prince Rupert Gas Transmission (PRGT) pipeline and Ksi Lisims LNG terminal are poised to export up to 12 million tonnes of LNG annually, much of it destined for Asian markets. The pipeline's route cuts through Gitxsan and Tsimshian territories, but many hereditary leaders and community members remain opposed. Janna Wale, who is a Gitxsan community member and co-author of the new Yellowhead Institute report said the dominant narrative portraying LNG projects as straightforward economic opportunities overlooks significant realities. 'There's been one kind of narrative presented — economic growth is good and LNG equals opportunity. But there are trade-offs and checks and balances. It's important to include those in the conversation,' Wale said. Financial risks Financial risk stands out as a core issue for Indigenous communities being drawn into the project as equity investors, joint venture partners or through procurement contracts. 'There's been one kind of narrative presented — economic growth is good and LNG equals opportunity. But there are trade-offs and checks and balances. It's important to include those in the conversation,' Janna Wale said. Hayden King, executive director of the Yellowhead Institute, said these communities also bear the greatest risks if things go wrong. Few long-term shipper contracts have been signed, forcing the project to depend on the volatile spot LNG market, where global competition is fierce and prices are unpredictable. The report highlights that Japan and South Korea — key prospective markets for BC LNG exports — are already experiencing surpluses. 'Given the glut in the LNG market, where is this going to be sold, to which market and how is it going to get there? Those answers are not yet clear and so that presents a risk to those in it, and then those that are impacted by it,' King said. Emily Lowan, who co-authored the financial risk analysis for the report, said 80 per cent of PRGT's funding comes from loans and 20 per cent from direct investment. With this setup, sharing the equity portion equally between two parties (Western LNG and the Nisga'a Nation) means each holds a 10 per cent ownership stake in the whole project. 'Equity owners are paid after lenders, which means they are financially vulnerable if a project defaults or does not result in projected returns,' Lowan said. While Ottawa's $10 billion Indigenous Loan Guarantee Program is seen as proof that the government wants Indigenous communities to have a real share in these projects will offer some financial cushion, Lowan said the program does not cover lost revenue if profits fall short or shield nations if a commercial partner collapses. Lowan said at the time the report was written, no loan guarantee programs protected the full corporate debt exposure. The Nisga'a Nation's $3 billion equity stake would absorb nearly 30 per cent of Canada's Indigenous loan guarantee fund. If costs overrun — as seen in previous megaprojects — lenders may demand more equity or refuse additional financing, potentially triggering defaults, she said. Environmental and social concerns The report highlights how the floating LNG terminals and associated infrastructure will threaten marine ecosystems through dredging that destroys coral reefs and oyster beds, underwater noise pollution and shipping operations that produce significant greenhouse gas emissions. 'It really is a watershed of impacts. When you start to impact one part of that system, the rest of the ecosystem will be impacted as well. These cascading effects are especially concerning as climate change stresses these environments,' Wale said. The pipeline crosses two of British Columbia's largest salmon-producing river systems, requiring clear-cutting through major waterways and drilling beneath critical spawning habitats. Wale warned the pipeline will bisect important salmon runs, huckleberry patches and moose habitat critical to Indigenous food security and cultural practices. Despite this, the pipeline's approval relies on a permit granted in 2014. In June, British Columbia's Environmental Assessment Office ruled construction was 'substantially started,' allowing developers to move forward without a new review. This permit bypasses contemporary environmental standards, even as climate impacts worsen — raising concerns among conflicting Indigenous voices. Socially, resource hub towns such as Terrace are expected to face higher housing and food costs and overwhelmed health services. 'There will be 1,200 people in a man camp just a kilometer away … our health care system here is hanging on by its threads, and we're going to be bringing in over 1,000 workers into a tiny community,' said Gina Mowatt, a Gitxsan member. The influx of transient workers in 'man-camps' also raises worries about increased risks of sexual violence toward Indigenous women, a pattern linked to such developments. Beyond these risks, the report details uncertainty linked to BC's shifting LNG policy. The 2024 commitment to 'net-zero ready' LNG projects by 2030 still allows ongoing fossil gas use if electricity isn't yet available, meaning emissions will persist and put additional strain on local environments. Rifts between Indigenous nations While the Nisga'a Nation has actively invested in and supported the project, many hereditary leaders and community members of the Gitxsan and Tsimshian nations oppose it, asserting they never gave free, prior and informed consent. King warned that this dynamic revives a colonial 'divide and develop' tactic that pits Indigenous Nations against one another. 'There are plenty of opportunities for First Nations to negotiate with BC or Ontario or Canada, but fewer opportunities for nations to negotiate and undertake this type of diplomacy amongst themselves and I think that's by design,' he said. 'I don't think Canada wants nations to be working together. I think they want them to be divided.' He said the governments and corporations cultivate division by labeling communities that support resource development as 'the good Indians' while portraying resisting groups as 'the bad Indians.' This 'cleavage that's created and cast,' King said, mainly benefits external actors and undermines Indigenous governance, long-standing diplomatic relations and collective power. He said the approval process itself risks deepening these divisions by advancing consultation and consent with only select Indigenous groups, while excluding others is further fracturing Indigenous unity. Mowatt frames the conflict as a struggle between Indigenous communities and external actors, rather than a dispute within Indigenous nations. '[Instead] the war is against PRGT; the war is against these massive international corporations that are coming into our territory, every intention to destroy our lives here,' Mowatt said. As the project moves forward amid fractured consent and complex risks, the social and environmental stakes continue to weigh on the communities whose lives and lands intersect with the pipeline's path. 'We need the whole picture … it's about the legacy left for future generations, and who actually gets to decide what that legacy will be,' Wale said.
Cision Canada
10-06-2025
- Business
- Cision Canada
Electricity sector urges federal government to adopt national plan to meet rising power demand
Electricity Alliance of Canada, an electricity industry coalition, outlines five priorities to secure clean, reliable energy and support Canada's economic future OTTAWA, ON, June 10, 2025 /CNW/ - Canada's electricity sector is calling on the newly elected federal government to develop a bold and immediate plan when it comes to electricity in Canada. This is urgently needed to meet growing demand, secure the country's economic future and become an energy superpower. Last week, the federal government introduced the One Canadian Economy Act, which highlighted the need for building projects in the national interest. There is no greater national interest project than building Canada's electricity grid. The electricity sector finds itself at a pivotal juncture. With climate change accelerating, global energy dynamics shifting, electricity demand increasing and potential U.S. tariffs looming, Canada cannot afford to lose its strategic energy advantage. Canadians expect affordable, reliable and secure power—and the electricity industry is committed to delivering it. Canada's economy was built on dependable power. Today, more than 60 per cent of electricity is generated from hydroelectric sources, with nuclear, wind, solar, and energy storage playing growing and essential roles. Yet current electricity production—around 630 terawatt-hours annually—will not meet future needs. As industries electrify, manufacturing returns, and the economy becomes more digital, pressure on electricity systems will grow significantly. To meet this growing demand, substantial investments in electricity generation, transmission and distribution are essential—not only to keep the lights on, but to create jobs and secure long-term prosperity. The electricity sector is urging the new federal government to act on five urgent priorities: Streamline project approvals and clarify investment incentives The One Canadian Economy Act promises to accelerate project approvals. This is desperately needed. Slow and uncertain approval processes hinder investment and delay critical projects. The industry needs an efficient, 'one project, one review' process for major electricity projects and a finalized version of the Clean Economy Investment Tax Credits. On carbon pricing, a flexible approach should support environmental outcomes while ensuring regional fairness and global competitiveness. Partner meaningfully with Indigenous communities The proposed act also promotes the need for Indigenous voices to be heard. Indigenous partnership in clean energy projects is vital to Canada's future, and Indigenous voices must be heard when it comes to energy decisions. The federal government should also expand tools like the Canada Infrastructure Bank and the Indigenous Loan Guarantee Program to ensure Indigenous partners can participate fully and on their own terms, supporting reconciliation. Build interprovincial energy corridors Canada must turn long-standing conversations about interprovincial grid connections into action. The federal government, provinces, Crown corporations and utilities must collaborate to support energy trade, infrastructure development and labour mobility in regulated occupations. Secure electricity supply chains Global supply chains are facing disruption from tariffs, regulation and trade tensions. The federal government must help manage these risks and ensure the resilience of supply chains critical to electricity infrastructure. Invest in workforce development The future grid requires a skilled, well-trained workforce. Continued federal investment in long-term training programs will help produce the tradespeople and engineers needed to support reliable, clean and resilient electricity systems. Affordable, reliable and clean electricity is a strategic Canadian advantage. The sector has already increased supply while reducing emissions, and is prepared to do even more. The One Canadian Economy Act indicates it's time to focus on "nation-building" projects. Building up the electricity sector—generation, transmission and distribution—not only represents a project in the national interest; it enables all other national interest projects. The electricity sector is ready to get to work on a strong, resilient system to meet growing demand and protect Canada's economic future. Canada needs a bold electricity plan—now. This statement was jointly issued by: Vittoria Bellissimo, President and CEO, Canadian Renewable Energy Association Francis Bradley, President and CEO, Electricity Canada Michelle Branigan, CEO, Electricity Human Resources Canada George Christidis, President and CEO, Canadian Nuclear Association Elisa Obermann, Executive Director, Marine Renewables Canada Lorena Patterson, President and CEO, WaterPower Canada About Electricity Alliance Canada Electricity Alliance Canada is a coalition of six industry associations promoting the power of electrification to lead the way to a sustainable energy future. Our mandate is to enable, promote and advocate for the increased use of electricity throughout the Canadian economy to help achieve Canada's net-zero emissions target.
Yahoo
10-06-2025
- Business
- Yahoo
Electricity sector urges federal government to adopt national plan to meet rising power demand
Electricity Alliance of Canada, an electricity industry coalition, outlines five priorities to secure clean, reliable energy and support Canada's economic future OTTAWA, ON, June 10, 2025 /CNW/ - Canada's electricity sector is calling on the newly elected federal government to develop a bold and immediate plan when it comes to electricity in Canada. This is urgently needed to meet growing demand, secure the country's economic future and become an energy superpower. Last week, the federal government introduced the One Canadian Economy Act, which highlighted the need for building projects in the national interest. There is no greater national interest project than building Canada's electricity grid. The electricity sector finds itself at a pivotal juncture. With climate change accelerating, global energy dynamics shifting, electricity demand increasing and potential U.S. tariffs looming, Canada cannot afford to lose its strategic energy advantage. Canadians expect affordable, reliable and secure power—and the electricity industry is committed to delivering it. Canada's economy was built on dependable power. Today, more than 60 per cent of electricity is generated from hydroelectric sources, with nuclear, wind, solar, and energy storage playing growing and essential roles. Yet current electricity production—around 630 terawatt-hours annually—will not meet future needs. As industries electrify, manufacturing returns, and the economy becomes more digital, pressure on electricity systems will grow significantly. To meet this growing demand, substantial investments in electricity generation, transmission and distribution are essential—not only to keep the lights on, but to create jobs and secure long-term prosperity. The electricity sector is urging the new federal government to act on five urgent priorities: Streamline project approvals and clarify investment incentivesThe One Canadian Economy Act promises to accelerate project approvals. This is desperately needed. Slow and uncertain approval processes hinder investment and delay critical projects. The industry needs an efficient, 'one project, one review' process for major electricity projects and a finalized version of the Clean Economy Investment Tax Credits. On carbon pricing, a flexible approach should support environmental outcomes while ensuring regional fairness and global competitiveness. Partner meaningfully with Indigenous communitiesThe proposed act also promotes the need for Indigenous voices to be heard. Indigenous partnership in clean energy projects is vital to Canada's future, and Indigenous voices must be heard when it comes to energy decisions. The federal government should also expand tools like the Canada Infrastructure Bank and the Indigenous Loan Guarantee Program to ensure Indigenous partners can participate fully and on their own terms, supporting reconciliation. Build interprovincial energy corridorsCanada must turn long-standing conversations about interprovincial grid connections into action. The federal government, provinces, Crown corporations and utilities must collaborate to support energy trade, infrastructure development and labour mobility in regulated occupations. Secure electricity supply chainsGlobal supply chains are facing disruption from tariffs, regulation and trade tensions. The federal government must help manage these risks and ensure the resilience of supply chains critical to electricity infrastructure. Invest in workforce developmentThe future grid requires a skilled, well-trained workforce. Continued federal investment in long-term training programs will help produce the tradespeople and engineers needed to support reliable, clean and resilient electricity systems. Affordable, reliable and clean electricity is a strategic Canadian advantage. The sector has already increased supply while reducing emissions, and is prepared to do even more. The One Canadian Economy Act indicates it's time to focus on "nation-building" projects. Building up the electricity sector—generation, transmission and distribution—not only represents a project in the national interest; it enables all other national interest projects. The electricity sector is ready to get to work on a strong, resilient system to meet growing demand and protect Canada's economic future. Canada needs a bold electricity plan—now. This statement was jointly issued by: Vittoria Bellissimo, President and CEO, Canadian Renewable Energy Association Francis Bradley, President and CEO, Electricity Canada Michelle Branigan, CEO, Electricity Human Resources Canada George Christidis, President and CEO, Canadian Nuclear Association Elisa Obermann, Executive Director, Marine Renewables Canada Lorena Patterson, President and CEO, WaterPower Canada About Electricity Alliance CanadaElectricity Alliance Canada is a coalition of six industry associations promoting the power of electrification to lead the way to a sustainable energy future. Our mandate is to enable, promote and advocate for the increased use of electricity throughout the Canadian economy to help achieve Canada's net-zero emissions target. SOURCE Electricity Canada View original content: Sign in to access your portfolio
Yahoo
29-05-2025
- Business
- Yahoo
The National Association of Friendship Centres (NAFC) acknowledges the 2025 Speech from the Throne
OTTAWA, Ontario, May 29, 2025 (GLOBE NEWSWIRE) -- The National Association of Friendship Centres (NAFC) is encouraged by the 2025 Speech from the Throne, delivered by His Majesty King Charles III on May 27, 2025. We appreciate the affirmation of the enduring relationship between the Crown and First Nations, Inuit, and Métis. The NAFC stands ready to be a strong national partner to assist the government to achieve its stated commitments to advancing Reconciliation, constitutional obligations to Indigenous peoples, and the advancement of Indigenous economic projects. "We appreciate the government's focus on advancing reconciliation through investments and commitments, and we are ready to help advance specific strategies for urban Indigenous people" said Jocelyn Formsma, Chief Executive Officer of the NAFC. "Urban Indigenous communities face unique challenges, and it's crucial that policies and programs are designed with these specific commitments such as tackling the negative impacts of climate change, upholding constitutional protections for Indigenous rights, and advancing and uplifting Indigenous languages.' "We look forward to collaborating with the government to ensure these commitments translate into tangible outcomes for urban Indigenous peoples. As the government moves forward with its agenda, the NAFC stands ready to engage in meaningful dialogue and partnership to ensure that urban Indigenous voices are heard and their needs addressed.' The Speech highlighted the Government of Canada's commitment to advancing reconciliation and building stronger partnerships with Indigenous communities. Key highlights included the expansion of the Indigenous Loan Guarantee Program, doubling its capacity from $10 billion to support economic partnerships that foster long-term wealth and prosperity. The government also reaffirmed its dedication to addressing the urgent challenges of climate change. Additionally, it emphasized the constitutional duty to uphold the legal right of Indigenous Peoples to free, prior, and informed consent. Finally, the government expressed its ongoing commitment to respecting and promoting Indigenous languages across Canada. FOR MEDIA INQUIRES: John Paillé Senior Communications Coordinator jpaille@ For over 50 years, the National Association of Friendship Centres (NAFC), a network of over 100 Friendship Centres across Canada, has provided culturally appropriate services to urban Indigenous communities from coast-to-coast-to-coast. Friendship Centres are the most significant Indigenous civil society movement in Canada. We are vital community hubs that are owned and operated by First Nations, Inuit and Métis in urban communities across Canada, from major cities to small and remote communities, we provide culturally relevant community supports, including employment and training, child-care and children's programs, culture and language, shelter, health, support, and development programs and in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
