An Indigenous Loan Guarantee Program is a government loan program that helps support Indigenous involvement in resource development. The program is designed to help indigenous communities access capital (money used to build, run, or grow businesses) so that they can undertake projects in their own territories. This helps indigenous own projects and create equity for their communities. The loan programs in place currently help offset the costs that come along with resource development projects.
There are several provincial initiatives that reflect this program but Canada has yet to implement a nationwide loan program. For example, in 2019 the Alberta Indigenous Opportunity Corporation (AIOC) was implemented, which helped to fund energy, mining, telecommunications, and transportation. Ontario began its Aboriginal Loan Guarantee (ALG) program in 2009, to help fund electricity infrastructure (including renewable energy infrastructure; wind, solar, and hydroelectric). They are now looking to expand this, but may consider excluding oil and gas projects.
Oil and Gas creates the highest equity for Indigenous communities. Over the past 11 years, more than $10 billion has been made in equity from resource development projects across Canada, with about 40% of this coming from Oil and Gas projects.
I have seen firsthand how Indigenous-led initiatives can change lives, families, and communities. Indigenous people should be allowed to make their own informed decisions, and thus create their own futures. It creates self-determination for communities and helps them have more stewardship over their lands and resources.
Excluding Oil and Gas resource projects from this Loan Guarantee project could create issues like not allowing Indigenous people to make their own choices and decide for themselves what kind of assets they want to own. Not including oil and natural gas as a part of an energy loan guarantee program, also undermines Canada’s commitment to reconciliation with Indigenous communities.
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