A recently published DeepDive authored by Varun Srivatsan, RBC Thought Leadership’s director of policy engagement, makes a compelling case for Indigenous economic reconciliation as both a moral obligation and an economic necessity for Canada. His analysis reveals how meaningful Indigenous partnerships could unlock billions in economic potential while addressing systemic barriers that have long hindered progress.
With over 70 percent of major Canadian capital projects intersecting with Indigenous territories—from pipelines to power grids—the report stresses that success depends on moving beyond transactional relationships to build trust-based partnerships rooted in equity and shared decision-making. Srivatsan identifies three critical pillars for this transformation: capital, capacity, and consent.
Here are five key takeaways from his report.
1. $98 billion Indigenous equity opportunity waiting to be unlocked
RBC’s analysis identifies nearly $98 billion in potential Indigenous equity participation in major projects over the next decade, spanning infrastructure, critical minerals, and energy development.
A major hurdle is the Indian Act, which prevents Indigenous communities from using reserve lands as collateral, severely limiting access to capital.
Solutions like federal and provincial loan guarantee programs (such as those recently announced in B.C. and Manitoba) could mobilize up to $48 billion in Indigenous investment—but $50 billion in financing gaps remain due to slow implementation.
2. Capacity building: A critical two-way investment
Indigenous communities often lack the technical, financial, and legal expertise needed to negotiate complex projects, resulting in an estimated $84 billion in unrealized opportunities.
At the same time, corporations and governments frequently lack the cultural competency to engage effectively with Indigenous Nations.
The report highlights successful Indigenous-led initiatives like the First Nations Major Projects Coalition and recommends allocating 3-5 percent of government funding to capacity-building programs, including secondments and leadership exchanges.
3. Consent as a strategic advantage, not just a legal requirement
While the duty to consult is constitutionally mandated under Section 35 and reinforced by UNDRIP, the report argues that free, prior, and informed consent (FPIC) should be seen as a competitive edge.
Case studies like Cedar LNG and Woodfibre LNG show that Indigenous-led environmental assessments can cut permitting timelines by five to 15 months compared to traditional regulatory processes.
Early engagement—before projects are formally proposed—and Indigenous-inclusive regulatory frameworks are key to building trust and efficiency.
4. Policy implementation delays are costing Canada billions
While governments have announced $20 billion in loan guarantee programs, only two-thirds are operational, leaving a massive financing gap.
The report urges policymakers to accelerate rollout, expand eligibility to more sectors, and ensure programs are adaptable to Indigenous needs.
Examples like the Canada Infrastructure Bank’s equity initiative show promise but need broader adoption to meet the scale of demand.
5. Economic reconciliation equals a stronger Canada
The report dispels the notion that Indigenous rights and economic growth are at odds, proving instead that Indigenous equity partnerships lead to faster approvals, stronger social license, and more stable investments.
With Canada facing trade volatility, a productivity gap, and global competition for capital, leveraging Indigenous participation in major projects could be the country’s key strategic advantage.
The conclusion is clear: Canada’s economic future depends on empowering Indigenous sovereignty and self-determination, not just as stakeholders, but as leaders in the nation’s next chapter of growth.
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Generative AI assisted in the production of this story.
