Canada's Energy Minister has signalled that federal taxpayer dollars could flow toward Alberta's proposed bitumen pipeline to the Pacific Coast, provided the project includes meaningful Indigenous ownership and economic participation.
Minister Tim Hodgson told the House of Commons natural resources parliamentary committee Thursday that the federal government would "support Indigenous equity ownership" through the $10-billion Indigenous Loan Guarantee program — a federal initiative designed to foster Indigenous economic participation in natural resource and energy projects.
"There could be scenarios where public money could be used in a pipeline where it was supporting Indigenous ownership of the pipeline," Hodgson stated in response to questions from opposition MPs.
The revelation comes as federal and Alberta governments continue negotiating details of a memorandum of understanding signed in November. Reports suggest the Carney government is weighing a Pacific Coast pipeline route that would differ from the northern corridor favoured by Alberta Premier Danielle Smith.
What the Deal Allows
Under the November MOU, the private sector would lead construction and financing of the project. However, the agreement explicitly permits public dollars flowing through the Indigenous Loan Guarantee Corporation to "help backstop Indigenous co-ownership."
While controversial to some observers, such federal investment likely would not breach Ottawa's guidelines on phasing out fossil fuel subsidies. Those rules include an exception allowing federal funding for projects that support Indigenous economic participation in fossil fuel activities — a provision designed to advance Indigenous self-determination.
Environmental Defence, however, argues the approach undermines the spirit of the guidelines. "Canadians have been clear they don't want their tax dollars going to one of the wealthiest sectors on the planet," said Julia Levin, national climate associate director at the advocacy group.
"Prime Minister Mark Carney's government continues to undermine his own rules by funding projects that put our economy and current and future safety at risk."
Timeline Accelerating
According to Bloomberg reporting, a deal on industrial carbon pricing between Ottawa and Alberta is expected to be finalized within two weeks — suggesting negotiations on the broader energy partnership are moving quickly.
The pipeline proposal represents a significant investment in Alberta's energy sector and signals the federal government's willingness to support major infrastructure through creative financing mechanisms that centre Indigenous participation.
This article is based on reporting from CBC Politics and Parliament Hill sources.