The Green Transition and Indigenous Communities

by ICC Staff

Indigenous communities are at the forefront of leadership and implementation in the transition to a net-zero economy in Canada. Through active investment and ownership in the clean-energy transition, Indigenous communities across Canada are showing how economic development and environmental stewardship are complements.

From Participation to Ownership

Recent data underscore this shift: today, First Nations, Métis and Inuit entities are partners or beneficiaries in nearly 20 % of Canada’s existing electricity-generating infrastructure —and almost all of that is renewable energy. In addition, there are nearly 200 medium-to-large (≥1 MW) renewable-energy projects with Indigenous involvement, and around 2,000 smaller micro or community systems now in operation or development.

This leadership comes with real economic implications. A report from Indigenous Clean Energy (ICE) shows that medium-to-large Indigenous-owned renewable-energy projects have grown by nearly 30 % since 2017. Federal funding is also showing up, in 2025 the federal government announced over $40 million for 13 Indigenous-owned and clean-energy projects, from solar panels to heat-pump retrofits.

What does this mean for Indigenous business development and the broader economy? First, it signals a shift from resource-extraction models, where historically Indigenous communities were often passive players, toward equity ownership and infrastructure-management capability, in addition to long-term asset returns.

Economic Sovereignty Through Clean Energy

For example, equity participation in energy and infrastructure projects is still concentrated regionally: Ontario, British Columbia, and Québec account for more than two-thirds throughout the country and with Manitoba just around 2 %. Second, these projects create high-quality jobs, development of local capacity and community revenue streams tied to clean-energy infrastructure rather than simply royalties.

For active players involved in business, finance, or trade, the growing clean-energy sector presents far-reaching opportunities and responsibilities. Indigenous-owned or partnered clean-energy projects are opening new avenues for Indigenous supply-chain participation in construction, operations, maintenance, monitoring, and related services.

In short, the green transition is not just helping to tackle a reduction in emissions; it is also contributing to high-level growth in strategic industries such as energy and infrastructure. Indigenous communities, importantly, are trailblazers in this transition, both as active participants and as beneficiaries.