Exploring shared prosperity: Indigenous leadership and partnerships for a just transition

To avoid climate catastrophe, renewable energy capacity must triple in the next six years. The private sector plays a critical role in this energy transition – as do Indigenous Peoples. If the opportunity of a just transition is to be realised, private sector and state commitment to Indigenous Peoples’ rights and transformative business models designed to deliver shared prosperity for and with Indigenous Peoples is non-negotiable. These need to be in alignment with Indigenous Peoples’ self-determined priorities.

This report, jointly produced by Indigenous Peoples’ Rights International (IPRI) and the Business & Human Rights Resource Centre the Resource Centre, explores the case for a renewable energy transition that centres Indigenous Peoples’ rights, interests and prosperity, as determined by them, in pursuit of a global transition that is fast because it is fair and sustainable.

Indigenous-led projects exemplify a shared prosperity model where our communities thrive by harnessing our knowledge and resources, ensuring that the benefits of renewable energy are felt by all, fostering resilience, empowerment, and a sustainable future for generations to come.

Adrian Lasimbang, Executive Director, Right Energy Partnership with Indigenous Peoples

By embedding respect for Indigenous Peoples’ rights – including to free, prior and informed consent – into project planning and implementation, businesses can forge trust-based relationships that lead to more sustainable projects, reduce legal and operational risks, and create long-term value. When anchored in Indigenous knowledge, these models can present new avenues for collaboration and innovation.

Pichamon Yeophantong, Head of Research and Associate Professor at the Centre for Future Defence and National Security, Deakin University; Member of the UN Working Group on Business and Human Rights

Grounded in over 40 interviews with IPs, investors and RE companies from around the world, the report highlights, through practical examples of benefit-sharing and co-ownership, as well as IPs’ lived experience, the opportunity of these business models, and their challenges and risks. As this report reveals, there is no one-size-fits-all model of benefit-sharing with IPs to ensure a just transition. However, private sector and state commitment to three key Just Energy Transition Principles are essential: shared prosperity, corporate human rights due diligence, and fair negotiations. This requires their commitment to core processes and practices that recognise IPs as equal partners in negotiation, design and project implementation, ensure respect for their rights, including the right to Free, Prior and Informed Consent (FPIC), and place value on Indigenous knowledge, experience, governance and decision-making processes. This, in turn, provides a critical foundation for the promise these new models may hold.