Thank you, Mr. Chair and members of the committee, for the opportunity to speak to you today about the future of Trans Mountain.
As I was introduced, I am the founder and managing director of a vision called Project Reconciliation, which has been, for seven years, looking at a need to change the model of how, under the constitutional duty to consult, to get major infrastructure projects like Trans Mountain permitted. It's not a conversation about promising jobs while we're building and that go away once the project's built, but it's a conversation about having material equity ownership.
I'm also the chair and CEO of a company called Reconciliation Energy Transition. We hold a major carbon hub in the Calgary area, and all of that has material indigenous partnerships.
Project Reconciliation has a clear and bold vision in that we are finance-, governance- and ownership allocation-ready to facilitate up to 100% indigenous ownership of Trans Mountain. This is about creating a path towards economic reconciliation, where indigenous communities are not just participants, as I just pointed out, but leaders in major projects through material equity ownership.
Project Reconciliation will have no ownership of Trans Mountain. We are ready to facilitate the purchase from Canada at commercial value—and I underline “commercial value”. This is not an ask to give this to indigenous peoples. The indigenous peoples—and we are finance-ready—will purchase this asset from the federal government at commercial value, and this is to go to 120-plus impacted nations. This would establish a foundation for indigenous generational wealth, weaving indigenous governance with corporate governance to foster economic independence and stewardship.
Our plan ensures that indigenous communities impacted by the pipeline will benefit economically. The sale of Trans Mountain to indigenous ownership is not just an economic transaction: It is a significant step towards financial sovereignty for indigenous nations. This ownership would enable communities to reinvest in housing, education, social services and the training and development of indigenous youth, and to invest in other infrastructure projects, addressing long-standing challenges as well as the reinvestments.
At the heart of this vision is the indigenous sovereign wealth fund. It was a vision that came...that the ownership would lead to a generational wealth base. Much like what Norway did in creating the Norwegian sovereign wealth fund, this would be the creation of a generational indigenous sovereign wealth fund whereby indigenous populations thrive and all Canadians benefit. Prosperous indigenous communities strengthen local economies, contribute to a more robust workforce and foster national unity. By enabling the indigenous participation early in major projects, we ensure that development is sustainable, inclusive and aligned with Canada's broader goals of economic growth, social justice and environmental responsibility.
I tabled the first offer to purchase 51% of Trans Mountain on July 2019 to former finance minister Bill Morneau. I had the National Bank of Canada and the chairman of Project Reconciliation with me at the meeting. Minister Morneau liked the proposal that was addressing a commercial value transaction, an ownership model that gave an allocation of ownership reflecting the individual nation's proximity to the right-of-way and a population weighting, and a governance structure that provided the voice at the table. Minister Morneau basically stated the Government of Canada was going to just build it first and then look to divest it, and here we are, seven years later. Well, actually, if I do the math, it's five years later—seven before we got ready to table the offer. He stated that material equity ownership needed to be the solution.
The divestiture of Trans Mountain is an opportunity to not only fulfill a commitment to reconciliation—and, really, to make an active verb out of that noun “undelivered promise”—but also to create a future in which indigenous communities are full economic partners in Canada's prosperity. Real economic reconciliation will take all of us, indigenous and non-indigenous, working together to create indigenous capital for future projects. In doing so we can change the existing business model, grow annual distributions, and support community services for future generations.
As TheFutureEconomy.ca report notes, closing the gap in opportunities for indigenous communities would boost Canada's GDP by $27.7 billion annually, which is an increase of 1.5%.
This sale is more than just an economic benefit. It's about building a new table where indigenous communities are leaders in decision-making, helping to build a stronger and more inclusive Canada.
While Project Reconciliation has been in a holding pattern, waiting for the completion of the pipeline, we have moved forward with Reconciliation Energy Transition as the basis to facilitate material indigenous equity partnerships and energy transition projects. RETI was awarded the CCS project for the greater Calgary area. The project also includes a sustainable aviation fuel project that will provide sustainable aviation fuel to Calgary International Airport. RETI has partnered with Sumitomo Corporation of the Americas in the hub.