Mark Carney is banking on economic reconciliation, but Indigenous leaders say he's missing the mark

This isn’t only a political debate. Ottawa is backing Indigenous equity stakes with taxpayer-guaranteed loans, and many Canadians hold pipeline, utility and infrastructure companies in their RRSPs, TFSAs and pension plans. If these partnerships fall apart, the cost would reach far beyond Parliament Hill.

What is Ottawa actually offering?

At the heart of these efforts is the Indigenous Loan Guarantee Program (ILGP), run by the Canada Indigenous Loan Guarantee Corporation (CILGC), a federal Crown corporation. Carney doubled the program to $10 billion in March 2025, and guarantees range from $20 million to $1 billion.

Then there’s Trans Mountain. The federal government has offered Indigenous groups a collective 15% stake in the federally owned pipeline, financed through a low-cost government loan. Signing on also brings a $2.5 million payment per First Nation, which some critics within those communities reportedly consider a bribe to secure approval.

All of this runs alongside Bill C-39, the Building Canada Strong Act. The government describes its benchmark as “one project, one review, one year.”

Why do critics say the plan is off track?

Littlechild argues that fast-tracking approvals sidelines Indigenous rights and traditional economies such as hunting, fishing and trapping.

Hayden King, executive director of the Yellowhead Institute, says Carney shares former prime minister Stephen Harper’s push for rapid resource development but relies on incentives where Harper relied on confrontation. King told The Canadian Press the TRC called for fixing the relationship first and talking partnerships second, and that real consent requires knowing all the details before deciding.

Indigenous Services Minister Mandy Gull-Masty disagreed with that assessment, pointing to broader institutional reforms, such as overhauling child and family services, as evidence of systemic progress alongside economic efforts.

A report from RBC Thought Leadership, the research arm of the Royal Bank of Canada, adds a financial caveat: “Equity is not inherently equivalent to consent.”

What does a loan guarantee save — and who carries the risk?

Carney’s first deal shows how the math works. In July 2025, a partnership of 38 First Nations in British Columbia bought 12.5% of Enbridge’s Westcoast pipeline for about $736 million. The $400 million guaranteed portion carries a 4.517% yield, while the unguaranteed portion pays 5.168%. That lower rate saves the communities roughly $2.6 million a year in interest.