A Natural Pathway for Economic Reconciliation
Canada’s forest sector is well positioned to advance economic reconciliation with Indigenous Peoples. Deeply connected by geography and longstanding relationships with Indigenous communities, the sector provides economic opportunity, cultural connection, and environmental stewardship. With targeted federal action—particularly in expanding funding access and improving program delivery—the government can help unlock further Indigenous leadership in the forest sector. This approach not only aligns with reconciliation goals but also supports broader objectives like wildfire management, biodiversity protection, and rural prosperity.
Context: Indigenous Leadership in Forestry
Many First Nations and Métis communities have sustainably managed forested lands for generations. The forest sector recognizes the unique and vital role that Indigenous stewardship plays in managing forests in Canada, making Indigenous engagement and leadership a growing priority. Today, over 11,000 Indigenous people are employed in forestry across 310+ communities, and approximately 395 Indigenous-affiliated vendors contribute to the sector. Between 2020 and 2022, Indigenous procurement in forestry grew by 36%, injecting nearly $500 million into the supply chain.
FPAC recognizes the unique and irreplaceable role Indigenous stewardship plays in managing Canada’s forests, and the vital importance forests have to the cultural, economic and spiritual relationships that Indigenous Peoples hold with the land.
Fueling Indigenous-Led Growth in Canada’s Forest Economy: Recommendations for the Federal Government
With renewed federal investment and collaboration, the forest sector can continue to support Indigenous prosperity, environmental stewardship, and cultural revitalization. Scaling what works—while removing systemic barriers—will ensure reconciliation is more than a promise; it becomes a shared national outcome. To advance reconciliation through the forest sector, FPAC recommends federal government action in four priority areas:
1. Increase Access to Capital
• Lower project eligibility thresholds for the Indigenous Loan Guarantee Program (ILGP) to reflect forestry’s smaller-scale projects, and learn from barriers experienced in provincial programs to create an accessible national program.
• Simplify funding applications, particularly for small and rural projects, and accommodate diverse submission methods to better support rural and remote communities.
• Assess and adapt institutional tools to improve capital access for Indigenous ventures, particularly by reviewing how funding is distributed across natural resource sectors.
2. Close the Infrastructure Gap
• Enhance Indigenous-led wildfire management by expanding FireSmart funding and scaling First Nations fire teams.
• Leverage Traditional Knowledge into wildfire risk reduction and forest planning.
• Incentivize Indigenous-led and co-managed bioeconomy projects that provide clean energy (e.g., biomass) and energy sovereignty.
• Reopen and expand the Indigenous Natural Resource Partnerships Program to fund climate-smart forestry innovations.
3. Enhance Indigenous Engagement Capacity
• Fund regional land-use and cumulative impact studies co-led by Indigenous communities and forest sector partners.
• Allocate more forest-sector-specific funding under major project environmental assessments to support Indigenous leadership in planning.
4. Sustain Key Programs that Support Knowledge-Sharing and Youth Engagement
• Increase and preserve long-term funding for high-impact youth programs such as:
o Outland Youth Employment Program (OYEP) – supports land-based skills and cultural learning for Indigenous youth.
o Project Learning Tree (PLT) Canada – has placed over 7,600 youth in green jobs since 2018, including 15% Indigenous youth.
• Ensure wage subsidies and mentorship programs are available to support Indigenous youth employment and workforce development.
