Energy Minister Tim Hodgson says federal public money could support Indigenous ownership in a potential Alberta bitumen pipeline through Ottawa’s loan guarantee program.
Federal dollars could help back Indigenous ownership in a potential Alberta bitumen pipeline to the Pacific Coast, Energy Minister Tim Hodgson told MPs Thursday, pointing to Ottawa’s $10-billion Indigenous loan guarantee program.
The comments give a clearer picture of how public financing could be connected to a project that has become part of federal-provincial talks between Ottawa and Alberta. The pipeline itself remains potential, and key details — including route, ownership structure and final financing — have not been settled publicly.
"With respect to public money, I want to be clear what we have said is that we would support Indigenous equity ownership with the Indigenous loan guarantee program," Hodgson told the House of Commons natural resources committee.
The program is intended to help Indigenous groups take ownership stakes in natural resource and energy projects. Hodgson said that means there could be circumstances in which public money is used in connection with a pipeline if it is supporting Indigenous ownership.
The issue has drawn scrutiny as the federal and Alberta governments work through details of a memorandum of understanding signed in November. The agreement says the private sector would build and finance the project with Indigenous ownership and economic benefits. It also says public dollars through the Indigenous Loan Guarantee Corporation could help backstop Indigenous co-ownership.
The financing question is politically sensitive because Ottawa has guidelines aimed at phasing out inefficient fossil fuel subsidies. Those rules still allow federal support for projects when the money is tied to Indigenous economic participation in fossil fuel activities, a carve-out intended to support self-determination.
Environmental Defence has argued that using the program for a pipeline would run against the spirit of those subsidy rules, saying federal money should instead be directed toward reducing climate pollution.
The route and shape of any Pacific Coast pipeline remain uncertain. Reports cited in the source material say the Carney government has been considering a route farther south than the northern option preferred by Alberta Premier Danielle Smith. The next major signal is expected from the continuing federal-Alberta discussions, including how Ottawa defines the line between private financing and public support for Indigenous co-ownership.
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