Energy
Canada’s Indigenous Peoples Eye Big Energy Deals, Await Trudeau Loan Promise
From EnergyNow.ca
By Rod Nickel, Nivedita Balu, and Alistair Bell
Trudeau’s government will release its budget April 16 and has said it will include plans to guarantee loans for Indigenous communities investing in major resource projects.
Canada’s First Nations are eyeing their biggest opportunities yet to invest in multi-billion-dollar energy projects from pipelines to power lines, hinging on Prime Minister Justin Trudeau keeping a promise this spring to make the deals easier to finance.
Trudeau’s government will release its budget April 16 and has said it will include plans to guarantee loans for Indigenous communities investing in major resource projects.
The government, which is trying to cut greenhouse gas emissions, has not said whether oil and gas projects will be included but if they are then they would represent some of the biggest Indigenous investment opportunities, from the government-owned Trans Mountain oil pipeline to TC Energy’s Coastal GasLink pipeline.
At least 38 Canadian energy projects were announced with Indigenous investment between 2022 and 2024, ranging in value from C$13 million to C$14.5 billion ($10.69 billion), according to the Fasken law firm, which has worked on some of the projects.
Enbridge is willing to sell Indigenous stakes in all types of assets, including North America’s biggest oil pipeline network, the Mainline, said executive vice-president of liquids Colin Gruending, adding that a Mainline deal would be complex because it crosses the Canada-U.S. border.
“Being open to all forms of energy, I think that’s important,” Gruending said of the federal guarantee. “If we’re going to involve more nations quicker, we need to open it up.”
The federal government will update next steps for a loan guarantee program in its budget, said Katherine Cuplinskas, spokesperson for the finance minister. She did not answer questions about the program’s dollar value or whether it would include oil and gas projects.
For energy companies, Indigenous partnerships provide capital infusions and a way to speed projects through approval from provincial governments that in some cases require First Nations equity.
A federal loan guarantee would allow First Nations to borrow at favorable rates, enabling them to profit, said Niilo Edwards, CEO of First Nations Major Projects Coalition, an Indigenous-owned organization that is advising First Nations on 17 projects worth a combined C$40 billion.
“A lot of (First Nations) are presented major investment opportunities that may be in the hundreds of millions of dollars and just don’t have the capital themselves,” Edwards said.
Alberta, Saskatchewan and Ontario offer provincial guarantees and British Columbia is developing one.
Banks already profit from advising and lending to First Nations and energy companies on deals but are eager for a federal guarantee to free up capital on a bigger scale.
“Provincial/federal loan guarantee programs with clear parameters could create a powerful force for accelerating capital into Indigenous-led projects,” said Michael Bonner, head of Canadian business banking at Bank of Montreal.
Many recent First Nations resource deals involve electricity and renewable energy.
BC Hydro is talking with an Indigenous coalition about buying 50% of its northwest transmission line expansion.
Wind and solar deals are also happening, such as Greenwood Sustainable Infrastructure’s C$200-million solar farm in Saskatchewan, announced in January, which will be at least 10% owned by Ocean Man First Nation.
Spain-based EDP Renewables, which built an Ontario wind farm in 2021 with 50.01% ownership by Piwakanagan First Nation, has multiple Canadian projects under development and is looking for more.
With First Nations knowledge and support, projects advance faster, said EDP North American CEO Sandhya Ganapathy. “Canada is super-high on our radar.”
(Reporting by Rod Nickel in Winnipeg, Manitoba and Nivedita Balu in Toronto Editing by Alistair Bell)
Dan McTeague
Carney launches his crusade against the oilpatch
Well, he finally did it.
After literally years of rumours that he was preparing to run for parliament and being groomed as Justin Trudeau’s successor.
After he, reportedly, agreed to take over Chrystia Freeland’s job as Finance Minister in December, only to then, reportedly, pull back once her very public and pointed resignation made the job too toxic for someone with his ambitions.
After he even began telegraphing, through surrogates, an openness to joining a Conservative government, likely hoping to preserve some of his beloved environmentalist achievements if and when Pierre Poilievre leads his party into government.
After all that, Mark Carney has finally thrown his hat into the ring for the position of Liberal leader and prime minister of our beloved and beleaguered country.
And, as I’ve been predicting, the whole gang of Trudeau apologists are out in force, jumping for joy and saying this is the best thing since sliced bread. Carney is a breath of fresh air, a man who can finally turn the page on a difficult era in our history, a fighter, and — of all things! — an outsider.
Hogwash!
This narrative conveniently ignores the fact that Carney has been a key Trudeau confidant for years. As Pierre Poilievre pointed out on Twitter/X, he remains listed on the Liberal Party’s website as an advisor to the Prime Minister. He’s godfather to Chrystia Freeland’s son, for heaven’s sake!
Outsider?! This man is an insider’s insider.
But, more importantly, Carney has been a passionate supporter and promoter of the Trudeau government’s agenda, with the job-killing, economy-hobbling Net Zero program right at its heart. The Carbon Tax? He was for it before he was against it, which is to say, before it was clear the popular opposition to it isn’t going away, especially now that we all see what a bite it’s taken out of our household budgets.
Even his course correction was half-hearted. In Carney’s words, the Carbon Tax “served a purpose up until now.” What on earth does that even mean?
Meanwhile, EV mandates, Emission Caps, the War on Pipelines, tax dollars for so-called renewables, and all of the other policies designed to stifle our natural resources imposed on us by the activists in the Trudeau government? They’re right up Carney’s ally.
Plus his record at the Banks of Canada and England, his role as the U.N.’s Special Envoy for Climate Action and Finance, and his passion projects like the Global Financial Alliance for Net Zero (GFANZ), and its subgroup the Net Zero Banking Alliance (NZBA), point to a concerning willingness to achieve his ideological goals by even the most sneaky, underhanded routes.
Take, for instance, the question of whether we need to “phase out” Canada’s oil and gas industry. Politicians who want real power can’t just come out and endorse that position without experiencing major blowback, as Justin Trudeau found out back in 2017. Despite years of activist propaganda, Canadians still recognize that hydrocarbon energy is the backbone of our economy.
But what if oil and gas companies started having trouble getting loans or attracting investment, no matter how profitable they are? Over time they, and the jobs and other economic benefits they provide, would simply disappear.
That is, in essence, the goal of GFANZ. It’s what they mean when they require their members – including Canadian banks like BMO, TD, CIBC, Scotiabank and RBC – to commit to “align[ing] their lending and investment portfolios with net-zero carbon emissions by mid-century or sooner.”
And Mark Carney is their founder and chairman. GFANZ is Mark Carney’s baby.
In truth, Mark Carney is less an outsider than he is the man behind the curtain, the man pulling the strings and poking the levers of power. Not that he will put it this way, but his campaign pitch can be boiled down to, “Trudeau, but without the scandals or baggage.” Well, relatively speaking.
But the thing is, it wasn’t those scandals – as much of an embarrassment as they were — which has brought an unceremonious end to Justin Trudeau’s political career. What laid him low, in the end, was bad policy and governmental mismanagement.
To choose Mark Carney would be to ask for more of the same. Thanks, but no thanks.
Dan McTeague is President of Canadians for Affordable Energy.
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