Investment into renewables is growing rapidly: according to the International Energy Agency, for every USD 1 spent on fossil fuels, USD 1.7 is now spent on clean energy. Five years ago, this ratio was 1:1. Large national and international energy companies are currently dominating the shift to renewable energy – but a growing body of evidence suggests that alternatives, such as community-owned or co-owned models are also on the rise: from microgrids and small-scale renewables to Indigenous Peoples' ownership and co-ownership of larger commercial-scale projects, these offer a significant opportunity for an energy transition that is fast, just and equitable. A truly just energy transition will ensure respect for human rights, fair negotiations and shared prosperity.

Challenging renewable energy harms

Indigenous Peoples are affected by the renewable energy value chain in numerous ways, ranging from the extraction of transition minerals to the development of renewable energy projects on their lands. It is estimated that 50% of transition mineral reserves are on Indigenous Peoples' territories, and a large percentage of renewable energy potential is located on marginalised rural communities’ land, especially that of Indigenous Peoples. These projects have so far led to numerous violations of Indigenous Peoples’ rights.

Effective regulation

Many governments are pursuing policy reforms that do not respect Indigenous Peoples’ rights, especially regarding their lands, territories and resources, their self-determination and their free, prior and informed consent (FPIC). This is compounded by an increase in authoritarian governance, restrictions on civic freedoms, and attacks on those seeking to protect people and planet from harms – human rights defenders (HRDs), among whom Indigenous defenders are disproportionately affected. Enabling conditions such as robust, rights-centred corporate accountability regulation, coupled with legal, policy and financial frameworks that enable Indigenous Peoples to engage in these projects, are key to making Indigenous Peoples' self-determined decisions a reality. This will aid in reversing the historical practice of concentrating power in the hands of a powerful few, while undermining the rights of Indigenous Peoples.

Indigenous leadership

Despite the complex circumstances, many Indigenous Peoples and Nations are forging ahead in leading significant clean energy projects. In projects initiated by renewable energy companies on or close to Indigenous Peoples' lands, Indigenous Peoples are also increasingly seeking more ownership and control of these projects. Evidence points to this growing trend in many parts of the world, including Canada and the USA, but also in Kenya, New Zealand and elsewhere. Through their own self-determined decisions, some Indigenous Peoples also choose to support and lead mining projects for the extraction of transition minerals – for example in Peru and Papua New Guinea, among other places. Indigenous Peoples’ leadership and self-determination is one key to a fast, just and equitable energy transition and successful, sustainable approaches to climate change adaptation and mitigation will prioritise their expertise and knowledge.

Given the importance and centrality of Indigenous Peoples-led renewable energy projects to the transition, we are also including resources and news on projects that are fully owned by Indigenous Peoples. Moreover, we will track news on other types of benefit sharing, such as community payments, local employment and procurement, and alternative skills and livelihoods development related to renewable energy deployment, which are important for many communities in relation to large scale wind, solar and other renewable energy projects.

Key priorities

Co-ownership models with commercial partners hold promise, but also risks. Respect for human rights is the foundation for any discussion on co-ownership and benefit-sharing. This is particularly the case for Indigenous Peoples’ self-determination, rights to lands, territories and resources, and their FPIC. If grounded in respect for human rights, co-ownership models may be one important way to put power – literally and figuratively – back into the hands of those who have historically been exploited by energy and natural resource industries. Human rights and environmental risks, land grabs, displacement of communities and attacks on Indigenous HRDs can potentially be avoided, and Indigenous Peoples’ rights, including FPIC, respected and more meaningfully implemented through them. With the renewable energy industry ramping up significantly, now is an opportune time for a shared prosperity approach.