Principles of Indigenous Just Transition
The Principles of Indigenous Just Transition, developed by the Indigenous Environmental Network, provide 11 core guidelines for a regenerative economy. The tool helps investors and developers ensure that energy transitions respect Indigenous sovereignty and avoid extractive practices.
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OVERVIEW
The Principles of Indigenous Just Transition framework provides a strategic set of guidelines developed to ensure that the global shift toward a green economy respects Indigenous sovereignty and rights. It serves as a values-based tool for evaluating energy and development projects, helping finance professionals and policymakers avoid ‘green colonialist’ practices that may inadvertently harm Indigenous communities or environments.
Organisation behind the tool
The framework was developed and is maintained by the Indigenous Environmental Network (IEN), an alliance of Indigenous peoples globally that focuses on environmental and economic justice.
What the tool does
The framework establishes 11 core principles designed to guide the transition from extractive economies to regenerative systems. Key features include:
- Definitions of Indigenous sovereignty and the ‘Right to Life’ within a development context.
- Protocols for establishing Free, Prior, and Informed Consent (FPIC) in renewable energy projects.
- Guidance on identifying ‘false solutions’ to the climate crisis that violate Indigenous rights.
- Frameworks for assessing project impacts on spiritual, physical, and territorial integrity.
Target audience
The tool is primarily intended for Indigenous community leaders, policymakers, project developers, and institutional investors involved in climate finance and renewable energy infrastructure.
Relevance to finance professionals
Finance professionals can apply these principles to enhance due diligence and risk mitigation strategies in several areas:
- Risk assessment – Identifying potential legal, social, and reputational risks associated with projects on Indigenous lands.
- ESG analysis – Integrating specific Indigenous rights metrics into social (S) and governance (G) reporting standards.
- Investment context – Aligning long-term infrastructure and energy portfolios with international standards of justice and self-determination.
- Market insights – Understanding the requirements for sustainable development in sectors such as agriculture, water, and renewable energy.
