Thank you, Mr. Chair.
We think that an intensity-based system would add another element of uncertainty to the market.
Now someone could argue that it is good to have an element of uncertainty in a derivative products market because ultimately it operates on assumptions of volatility and uncertainty. However, in this case, to ensure that there is real liquidity, if the government offered companies that must reduce their GHG emissions more clarity and certainty, the market would be much more efficient, deeper and more transparent. That's our impression.
Without a doubt, we would prefer the market to be built on an absolute basis. We've tried to analyze what the market dynamic would be if we adopted reduction targets based on intensity, and we believe that such targets would constitute another element of uncertainty for users. In our view, that might undermine liquidity over the long term.
Thank you.