Finance committee  This is very important. Canadian oil sands really have one of the best track records on environmental performance, indigenous relations and many other fronts compared to anywhere else in the world, except on one key issue, which is emissions intensity. Canadian oil sands are highly emissions-intense, because the process is highly intense.

Finance committee  Our current plan is we would achieve about 10 to 12 megatonnes of reductions through carbon capture. We have other emissions reduction technologies we're working on; however, through carbon capture we would achieve up to about 16 megatonnes by 2032. This would be a very significant portion of the oil and gas emissions reductions and of Canada's emissions reductions in the next 10 years.

Finance committee  I think that's a good point. The U.S. Inflation Reduction Act was not only passed within two months, but the ITC was first talked about in budget 2021. Then it was talked about again in budget 2022. There were two rounds of draft legislation. It's been a three-year process to get this to the state it's at now.

Finance committee  The headline rates are 50% ITC for carbon capture, 37.5% for carbon capture pipelines and, I think, 60% for direct air capture, and they are generous. They compare with what's available in other jurisdictions. The challenge is that there are a lot of details in the legislation that may make it hard to achieve those headline rates.

Finance committee  Thank you, Mr. Chairman and honourable members. I am pleased to be speaking to you today on behalf of Pathways Alliance. Pathways Alliance represents Canada's six largest oil sands producers: Canadian Natural, Cenovus, ConocoPhillips Canada, Imperial, MEG Energy and Suncor. Together, our six companies operate 95% of Canada's oil sands production.