The issue of the extent to which Indigenous Peoples have the right to free, prior and informed consent (FPIC) with regard to projects in their territories is widely debated both internationally and within national contexts.

FPIC refers to a process whereby affected Indigenous Peoples have the free choice, based on sufficient and timely information concerning the benefits and disadvantages of the project, of whether and how these activities occur, according to their systems of customary decision-making.
Specifically, FPIC means:

• Free—people are able to freely make decisions without coercion, intimidation, punishment or manipulation.
• Prior—sufficient time is allocated for people to be involved in the decision-making process before key project decisions are made and impacts occur.
• Informed—people are fully informed about the project and its potential impacts and benefits, and the various perspectives regarding the project (both positive and negative).
• Consent—there are effective processes for affected Indigenous Peoples to approve or withhold their consent, consistent with their customary decision-making processes, and that their decisions are respected and upheld.

FPIC is therefore more than just a process of consultation. It is about a negotiated process involving all interested parties, the aim of which is to allow Indigenous Peoples to either give or withhold their consent. Although there is a certain amount of consensus between governments, NGOs and companies on the need for free,prior and informed consultation with Indigenous Peoples in negotiation and decision-making processes, the concept of consent is not universally accepted.

Many governments question the right to consent for Indigenous Peoples over oil and gas developments of national significance in their territories, while many companies have concerns over the practicalities of applying and enforcing FPIC. Company concerns include ambiguities around ‘consent’ such as:

• Would consent require full community support, or just a majority?
• Would consent be granted through representative institutions or individual choice mechanisms, such as a referendum?
• How is ‘consent’ defined throughout the life of a project—could ‘consent’ which is given at the outset of an investment be withdrawn at a later stage?

Regardless of the debate, companies benefit from ongoing engagement with Indigenous Peoples in places where they operate, and from their broad support and participation.

Between 2009- 2011, IPIECA provided input to IFC’s Revised Guidance Note 7 on FPIC.