First Nations partnerships could mean big business in Sask. after carbon pricing

A professor at the University of Saskatchewan says the federal government's carbon pricing plan could be a golden opportunity for Saskatchewan businesses and First Nations.

Greg Poelzer, executive chair of the International Centre for Northern Governance and Development, believes green energy projects will become more and more popular as carbon pricing is rolled out. He added that businesses that partner with First Nations will have an advantage.

"The New West Partnership allows for an exemption for business opportunities if there's a strong Aboriginal component," he told CBC Radio's Saskatoon Morning. "If we have Aboriginal power producers, like the recently created Sage Power, which is with English River and the Peter Ballantyne Cree Nation, we can capture new, renewable greenfield projects, and those dollars would stay in the province."

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The New West Partnership is an interprovincial trade agreement between British Columbia, Alberta and Saskatchewan, which was signed in 2011. Having an exemption inside that area could mean big opportunities.

"It could be joint ventures between First Nations and local Saskatchewan companies, which would be far preferable than if it was an Alberta-based company," he said. "We would see those dollars hemorrhage out."

As well, Poelzer said the federal government is very interested in giving money to green energy projects, particularly when First Nations are involved.

"Given that 15 per cent of the population of Saskatchewan is Aboriginal, and growing, if the federal government were, on a per capita basis, putting into that in a field where First Nations engagement is independent power producers, Saskatchewan producers are going to benefit."

Butting heads

Ultimately, Poelzer said Prime Minister Justin Trudeau and Premier Brad Wall both have valid approaches when it comes to combating climate change. While Wall is concerned about protecting carbon-heavy industries like mining and the agricultural sector, Trudeau is worried about Canada's international reputation.

He believes one of the key factors on why Trudeau and Wall can't come to terms can be boiled down to age-old battles between the provinces and the federal government.

"I've yet to see, in my 25 years as a political scientist, anytime a premier of any province in Canada loves it when a prime minister imposes a plan, whether it's in health care or the energy sector," he said. "I think a lot of it has to do with that, as well as some legitimate concerns, like the agricultural sector."

Poelzer said the best course of action would be to have a North American strategy, where industries — like agriculture — could have a single carbon price across borders, making sure they are still competitive.

While there are business costs associated with carbon capture, Poelzer said the opposite can be true as well.

"If you look at the record of the previous prime minister, who was very pro-pipeline, he couldn't get a single pipeline approved," he said. "And part of it was because Canada was seen as not doing much on the front around aggressive climate change policy.