Canada's Energy Minister has opened the door to using federal taxpayer money to support Alberta's ambitious pipeline project to the Pacific Coast — but only if Indigenous communities have a stake in the ownership.
Minister Tim Hodgson told Parliament's natural resources committee this week that public funds flowing through the federal Indigenous Loan Guarantee Program could help backstop Indigenous co-ownership in the proposed bitumen pipeline, according to details emerging from ongoing federal-provincial negotiations.
"There could be scenarios where public money could be used in a pipeline where it was supporting Indigenous ownership of the pipeline," Hodgson told the House of Commons committee Thursday, responding to questions about how Ottawa plans to finance the controversial project.
A $10-Billion Indigenous Investment Tool
The Indigenous Loan Guarantee Program is a federal initiative worth $10 billion, designed to help Indigenous communities gain ownership stakes in natural resource and energy projects across Canada. Under the program structure, Ottawa could guarantee loans that enable First Nations to purchase equity in the pipeline — a move supporters say advances Indigenous self-determination and economic participation.
The funding approach aligns with a memorandum of understanding signed by Ottawa and Alberta's provincial government in November, which states that private-sector partners would construct and operate the pipeline while Indigenous communities secure ownership benefits. The MOU explicitly allows public dollars through the Indigenous Loan Guarantee Corporation to "help backstop Indigenous co-ownership."
Ottawa and Edmonton Navigate Pipeline Details
Federal and provincial officials continue hammering out specifics of the pipeline deal. Recent media reports suggest the Carney government is considering a southern Pacific Coast route that diverges from Alberta Premier Danielle Smith's preferred northern corridor. Bloomberg reported this week that a separate agreement on industrial carbon pricing is expected within two weeks.
The project represents a significant bet on Alberta's energy sector at a time when climate concerns dominate policy debates. While private investors would handle construction and operation, the federal Indigenous ownership strategy positions the pipeline as an economic development tool for First Nations.
Environmental Groups Push Back
Not everyone supports the approach. Environmental Defence has warned that using federal dollars this way contradicts the spirit of Canada's commitment to phase out fossil fuel subsidies, even if it doesn't technically violate written 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 Environmental Defence. "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."
Federal guidelines do carve out an exception for projects that advance Indigenous economic participation in fossil fuel activities — a provision designed to respect Indigenous self-determination and community control over resource development on or near their territories.
What's Next
The pipeline proposal remains in the negotiation phase, with no final decision announced. Hodgson's comments suggest Ottawa sees Indigenous ownership as a key framework for moving the project forward while managing political and environmental opposition.
For Albertans and Indigenous communities watching these developments, the coming weeks will reveal whether this funding approach becomes reality or remains a preliminary talking point in ongoing federal-provincial talks.
This article is based on reporting from CBC Calgary's parliamentary coverage. For the full original story, visit CBC News.