Canada’s $60B Trade and Investment Opportunity

Press Release

The Respective Territories of the Haisla Nation, Nisga’a Nation, Metlakatla First Nation and Halfway River First Nation, June 17, 2024 – Canada is at a crossroads. A rare alignment of climate, economic, trade and Indigenous partnership priorities has created a once-in-a-generation opportunity to strengthen the economy, diversify exports and lead in global decarbonization. The First Nations Climate Initiative (FNCI) is calling on governments to act now—before the window closes.

FNCI—a coalition of Indigenous governments and policy leaders—says more than $60 billion in Indigenous-led and partnered projects are ready to proceed in northwest British Columbia. These projects span clean infrastructure, energy and resource production tied directly to energy exports and to the decarbonization needs of Asia’s fastest-growing economies. First Nations-led projects can produce hydrogen, ammonia, LNG and critical minerals, along with building the critical infrastructure to power development with clean electricity via transmission lines and renewable energy projects.

The fundamentals are in place: the partnerships are real, the investment and infrastructure needs are significant. The climate benefit is both local and global. Governments have made broad commitments to economic growth, climate action and Indigenous ownership and participation—now it’s time for targeted policy and regulatory action that turns those commitments into real investment and progress.

What Needs to Happen Next: Policy to Unlock the Opportunity

To fully realize this $60 billion opportunity of projects—and ensure Canada meets its climate and trade goals—targeted policy action is needed in four key areas:

1. Expand Investment Tax Credits to Support Nation-Building Transmission Infrastructure

FNCI is calling on the federal government to expand eligibility under the Clean Electricity Investment Tax Credit (CE-ITC) to include intra-provincial transmission, and on the Government of British Columbia to ensure Indigenous proponents share equitably in the value of these projects once enabled.

Canada and British Columbia cannot meet their climate commitments or unlock the full value of their clean economy potential without major new transmission infrastructure—particularly in regions where clean energy and resource projects are ready to proceed but the grid does not exist or is too small.

In areas like northwest B.C., Indigenous-led and partnered developments are advancing projects that will produce hydrogen, ammonia, LNG and critical minerals for export to the world. Without new transmission infrastructure, those economic opportunities—and the climate goals tied to them—remain out of reach.

Despite its strategic importance, this type of infrastructure remains ineligible for support under the CE-ITC. The current framework limits eligibility to interprovincial lines, overlooking the vital role intra-provincial transmission plays in decarbonizing domestic supply chains and connecting Canadian energy and resources to global markets.

FNCI is calling for:

• Expansion of CE-ITC eligibility to include intra-provincial transmission
• Equitable sharing of infrastructure value with Indigenous proponents through provincial policy and implementation
• Recognition of northwest B.C. transmission infrastructure as essential to clean growth, international trade and climate-aligned resource development—meriting a comprehensive approach to funding

2. Enable the Use of Indigenous-Led Offsets for Climate Obligations

FNCI is calling on the federal and provincial governments to adjust regulatory frameworks so that verified, Indigenous-led nature-based offsets can be used to meet climate obligations—and to expand Atmospheric Benefit Sharing Agreements that ensure Indigenous Nations receive a fair share of the resulting revenues.

As industrial developments work toward net-zero targets, Indigenous nature-based solutions offer a clear and credible pathway. Across FNCI partner Nations, more than eight million hectares of land have been identified as high potential for carbon sequestration, with active projects already underway, including through Halfway River First Nation and Nisga’a Nation.

Under current policy, most industrial proponents cannot use high-quality nature-based offsets to reduce their carbon tax or meet regulated emissions obligations. Even when Indigenous-led projects are restoring carbon sinks and generating legitimate, additional carbon reductions, provincial and federal frameworks still require industrial proponents to pay into general revenue.

FNCI is calling for:

• Changes to provincial and federal regulations to allow verified Indigenous-led offsets to count toward industrial climate compliance
• Implementation of Atmospheric Benefit Sharing Agreements to ensure Indigenous governments share directly in offset-related revenues
• Policy frameworks that ensure transparency, carbon permanence and long-term ecosystem and community benefit

This is a practical, shovel-ready solution that accelerates decarbonization and helps meet net-zero commitments. It strengthens climate outcomes while directing compliance funding into local ecosystems, rural economies and the Indigenous communities restoring them.

3. Activate Canada–Asia Decarbonization Pathways Through Strategic Export Policy

FNCI is calling on federal and provincial governments to adopt policies that recognize the climate value of Indigenous-led exports—and support their integration into Canada’s international trade and decarbonization strategy.

Canada has a unique opportunity to support global climate action while advancing national trade, energy and Indigenous reconciliation goals—by exporting low-carbon resources to Asian economies seeking credible decarbonization solutions.

Phase 2 of FNCI’s Canada–Asia Decarbonization Opportunities Project is underway, building on the Phase 1 landmark report Western Canadian Gas Exports: Opportunities and Risks in a Low Carbon World (November 2023) and extensive engagement with Indigenous communities, governments and industry.

This phase moves beyond research toward activation—advancing strategies, partnerships and analytical tools to enable Indigenous-led and partnered infrastructure projects, including LNG, ammonia, hydrogen and the clean transmission required to power them. Dr. Robert (RJ) Johnston, who directed the Phase 1 report, is organizing an expert group to provide analytical support in identifying, measuring and verifying the low-carbon benefits of these projects across the value chain from B.C. upstream to customer end use in Asia. That work includes the development of advanced, end-to-end methane monitoring best practices and data to validate the projects as delivering material GHG reductions compared to other fuels.

These projects are nationally significant, globally relevant and structured to deliver measurable emissions reductions abroad, alongside economic value at home. They are directly aligned with the decarbonization goals of major Asian trading partners and present a clear opportunity for Canada to contribute to global emissions reductions across Scope 1, 2 and 3.

FNCI is calling for:

• Emissions accounting policies that recognize and credit the emissions reductions achieved by Indigenous-led exports of low-carbon fuels and critical resources
• Alignment of federal and provincial trade and export policies to accelerate these Indigenous-led climate solutions

4. Invest in Globally Significant Low-Carbon Technologies

FNCI is calling on the federal and provincial governments to support Indigenous-led deployment of breakthrough technologies that reduce emissions from Canada’s resource sectors—starting with methane pyrolysis.

To remain competitive in a decarbonizing world, Canada must invest in the technologies that will define the next era of clean energy. Methane pyrolysis is one such solution: it produces hydrogen from natural gas without releasing carbon dioxide, instead generating solid carbon (graphite)—a clean, stable critical mineral used in battery materials, steel and advanced manufacturing. This offers a path to low-emissions hydrogen at scale, using existing infrastructure and natural gas reserves.

Indigenous Nations are already piloting projects in this space, advancing technologies with both domestic and global relevance. But unlocking their full potential requires targeted investment and a policy environment that enables innovation.

FNCI is calling for:

• Targeted investment and loan guarantees for Indigenous-led pilot projects, including methane pyrolysis projects
• Clear permitting pathways for new low-emissions technologies
• Policy frameworks that recognize Indigenous Nations as full partners in Canada’s clean technology leadership

Quotes

Crystal Smith, elected Chief Councillor, Haisla Nation (FNCI founding leader)

“Cedar LNG is the world’s first Indigenous majority-owned LNG project. It will produce industry-leading, low-carbon, cost-competitive Canadian LNG for overseas markets. And for the Haisla, the future looks different for the next generation than it did a decade ago. And it’s hopeful. Poverty, suicide, homelessness, joblessness are being replaced by economic independence and autonomy. And we hope this is just the beginning of generational opportunities and nation-building projects for those that were left behind in the previous waves of this country’s economic transformations.”

Eva Clayton, elected President, Nisga’a Nation (FNCI founding leader)

“FNCI and its partners have been advancing an interconnected set of projects that further the interests of Indigenous Peoples, grow the Canadian economy significantly, and are directly mitigating the impacts of climate change. These projects include Indigenous-owned and partnered LNG facilities, new low-carbon energy technologies, mines that are key to the critical minerals strategy and the transmission infrastructure and generation that powers the northern economy with clean and secure power. When you add them all together, they amount to over $60 billion in investment oriented to new markets that will strengthen Canada’s autonomy, resiliency, and security.”

Andrew Robinson, Chief Executive Officer, Nisga’a Lisims Government

“The Nisga’a Nation is taking real steps to help other countries decarbonize their economies while addressing poverty at home. The Nisga’a are building a net-zero LNG facility on their lands and will export net-zero LNG to Asian countries that still rely on coal to generate electricity. The facility will have one of the lowest carbon intensities of any large-scale LNG export project in the world, utilizing several technologies and pathways to reduce carbon emissions throughout the lifecycle.

“International collaboration is needed to action climate solutions. Facilitating the switch from coal to gas is a crucial step in the energy transition globally, and notably, as we plan even further, LNG is a feedstock for manufacturing hydrogen and other decarbonized fuel sources. Partnerships with Asian countries are an opportunity to provide climate solutions to the world while creating a prosperous economy at home which keeps the people on their land to which they are deeply connected.”

Dr. Robert “RJ” Johnston, Research Director, Director of Energy and Natural Resources Policy, University of Calgary, and Independent Research Advisor to FNCI

“I have been privileged to be a partner and advisor to the First Nations Climate Initiative on their important work. I look forward to continuing to engage from my new role at the School of Public Policy at the University of Calgary. Canada’s G7 leadership this year is an important opportunity to highlight the hard work and progress on responsible energy and infrastructure development under the leadership of the FNCI Nations and the possibilities ahead for LNG, hydrogen, ammonia, and electricity for both Canada and our trading partners.”

Darlene Hunter, elected Chief, Halfway River First Nation (FNCI Nation)

“Nature-based solutions aren’t new to Halfway River First Nation—they are part of how we’ve cared for the land since time immemorial. As carbon markets grow, credits from our stewardship should benefit all types of projects—but ownership must stay with the Nations. That’s how climate action becomes just and meaningful.”

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First Nations Climate Initiative contacts to arrange media interviews:

Chanda Hunnie

chanda@pacificresolutions.com

(204) 995-1555

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