There are several important aspects to this.
First, there has to be continued support for the commercialization of innovation. It is very important to be involved, and not only at the research and development stage. It is very important to make sure that those innovations that have the potential to be profitable be able to get through what we call in finance the “valley of death”. The venture capital sector in Canada has not always been very strong. It is therefore important to complement and stimulate private investment at all stages. This is very important.
Second, we would like the government to create a 10¢ excise tax exemption for cellulosic biofuels, as a way of supporting the second wave of growth in Canada's domestic biofuel industry. The second wave is going to come from these new technologies that can take on a large variety of biomass types, including municipal waste. It is important to provide incentives and to be competitive with other jurisdictions in the world, otherwise the plants will be built elsewhere. Biofuels will then be exported and greenhouse gas emission reductions will also take place elsewhere, outside Canada.
My last point would also be that there is currently a tax incentive in the renewable energy sector but it focuses on the production of renewable energy for electricity, and excludes biofuels. I am referring to the accelerated capital cost allowance.
Thank you.