FNMPC’s visit to Argentina: Indigenous Equity Participation as a Competitive Advantage
By Juan Dumas
Mark Podlasly’s visit to Argentina last week as CEO of the First Nations Major Projects Coalition (FNMPC) offered a compelling opportunity to reflect on how indigenous equity participation in major projects is transforming Canada’s energy and infrastructure sectors. Witnessing how First Nations in Canada negotiate equity positions in major projects offers a glimpse into a potential path forward for indigenous communities and companies in Latin America.
Mark Podlasly at the Canadian Embassy in Argentina presenting FNMPC’s work.
Mark Podlasly’s visit to Argentina last week as CEO of the First Nations Major Projects Coalition (FNMPC) offered a compelling opportunity to reflect on how indigenous equity participation in major projects is transforming Canada’s energy and infrastructure sectors. As discussions unfolded in meetings with representatives from banks, energy and mining companies, governments, civil society organisations, impact investors, and corporate foundations, a key message emerged: indigenous communities are no longer passive stakeholders in resource development; they are becoming co-proponents and co-owners, bringing capital to the table, reducing project risks, securing permits, attracting investors and ensuring long-term sustainability. To be clear, this is not about indigenous communities demanding an equity stake in exchange for not opposing a project. That approach amounts to extorsion and does not work.
While Canada and Latin America have different legal and historical contexts, the fundamental challenges facing indigenous communities—limited access to capital, high unemployment, and historical disregard for their rights—are strikingly similar. In Canada, First Nations are leveraging ownership structures to secure a greater role in the energy transition. In Latin America, where indigenous communities often face even greater financial and political constraints, this model presents both a challenge and an opportunity.
Beyond Consultation: Indigenous Communities as Co-Proponents
For decades, indigenous participation in large-scale projects was largely limited to consultation processes and benefit agreements that often fell short of community’s expectations for long-term economic inclusion. Today, First Nations in Canada are negotiating equity positions in major infrastructure projects, ensuring they have both a financial stake and decision-making power.
The benefits of this approach are clear. Ontario plans to expand its transmission system three-fold by 2035 and realised it would not meet this target if they were to address indigenous opposition project by project. Instead, they chose to offer First Nations a 50% equity option in major transmission line projects. The result? The first line was completed one year ahead of schedule and CAD 15 million under budget. However, the model faces a key constraint: access to financing. First Nations must find the capital to exercise their equity option.
The Challenge of Capital Access
Access to affordable capital remains the most significant barrier to indigenous equity participation. Interest rates for First Nations without collateral can reach 30%, making participation in long-term energy projects with 9-10% regulated returns financially unviable. The FNMPC itself was born out of this struggle—when 11 communities negotiated a 30% equity option in a CAD 5 billion gas pipeline but lacked the capital to exercise it, they realised the need for a collective mechanism to secure financing in future deals. Some provincial governments offer loan guarantees, and the federal government announced last year it would follow suit with a similar CAD 5 billion program. First Nations have also turned to bridge loans from corporate partners, co-development fees, land-use rights, social impact funds to finance their equity positions. Now they are also targeting pension funds, but ticket sizes often represent a challenge.
In Latin America, where public budgets are even more constrained, finding viable financial solutions will be an even greater challenge. Without access to finance, communities' initial equity positions will likely be small, but as they build wealth and reinvest in new projects, their ownership stakes may gradually expand.
Stella M. Zapata (Millaqueo), Diego Padilla (Sustentar), Ramiro Fernández (Meliquina), Matías Dumais (Meliquina), Daniel Fernandez (Sustentar), Betti-Jo Ruston (Canadian Embassy), Delia Mamani (Puesto Sey), Mark Podlasly (FNMPC), Nora Romero (Millaqueo), Ana Garasino (Canadian Embassy), Adela Acuña (Millaqueo) and Juan Dumas (Meliquina).
The Energy Transition as a Defining Opportunity
The global push toward net zero emissions is rapidly reshaping energy and infrastructure investment. RBC estimates that Canada will need CAD 2 trillion in investment by 2050, with much of this funding expected to come from foreign sources. Canada’s experience demonstrates that fighting indigenous opposition on a project-by-project basis is neither efficient nor sustainable. Delays, lawsuits, and social unrest have discouraging foreign investment in major projects. In contrast, when indigenous communities are equity partners, projects are completed faster, investors are reassured, and local benefits are more equitably distributed. The Canadian government has invited indigenous business leaders on official investment missions to promote equity partnerships as a de-risking strategy for foreign investors.
As for Latin America, Columbia University and the International Energy Agency (IEA) project the region must increase its annual clean energy investments fivefold to meet its climate goals. A significant portion of this infrastructure will be built on indigenous lands, making equity participation not just a matter of inclusion but a critical factor in securing the success of the energy transition. Failing to align corporate and community interests will result in more conflict, uncertainty and slow deployment of capital.
Equity as a Proxy for Respect
Indigenous ownership is about more than financial returns—it is a proxy for respect. For too long, indigenous communities have been seen as obstacles to development rather than as partners. Some companies still resist engaging in equity partnerships, viewing them as unnecessary complexity. Others, however, see them as a competitive advantage, recognising that when communities co-own a project, they do not oppose it.
There is no one-size-fits-all model. Some communities prefer revenue-sharing agreements or impact-benefit arrangements rather than equity ownership. In the mining sector, where cash flows are highly unpredictable due to commodity price fluctuations, revenue-sharing models are often preferred. However, for large-scale energy projects—85% of the projects supported by FNMPC are in clean energy—equity participation is proving to be a viable and scalable model. In fact, it is becoming a competitive edge for those companies who have learned to do it and are positioning themselves as partners of choice for communities seeking meaningful participation in projects on their lands.
Looking Ahead
While First Nations in Canada have made significant progress, challenges remain. Not all projects are acceptable to communities, and those that are must be structured in a way that respects indigenous governance and priorities. The legal and financial landscape continues to evolve, and communities must navigate issues of land rights, financing mechanisms, and the long-term sustainability of their investments. Indigenous communities from other regions are watching closely and learning from Canada’s experience. And as First Nations’ capacity and financial strength continue to grow (they hold CAD 115 billion in trust funds), it is not inconceivable that they could one day invest in indigenous-led projects in Latin America or other parts of the world.
Canada’s experience with equity partnership provides a vision of a possible future, not an immediate blueprint. Witnessing how First Nations in Canada negotiate equity positions in major projects offers a glimpse into a potential path forward for indigenous communities and companies in Latin America. We will need to create our own models according to the specific realities of our countries. While the challenges ahead may be significant, none is insurmountable.
The question is no longer whether community equity partnerships are relevant—they clearly are. The challenge is how to scale these models, secure affordable financing, and ensure that communities have the tools to succeed as full economic partners in the energy transition.