Mr. Chair, I am pleased to be here today to discuss our report on the strategic innovation fund's net-zero accelerator initiative that was tabled in Parliament in April 2024.
I too would like to acknowledge that this hearing is taking place on the traditional unceded territory of the Algonquin Anishinabe people.
Joining me today is Nicolas Blouin, the director who led the audit team.
The net-zero accelerator initiative aims to lower greenhouse gas emissions by incentivizing Canadian industries to decarbonize their operations. Our audit focused specifically on manufacturing, and we looked at whether Innovation, Science and Economic Development Canada managed the initiative to decarbonize the manufacturing industries in accordance with Canada's climate goals and with due regard to value for money.
We found that Innovation, Science and Economic Development Canada had failed to attract the country's largest industrial emitters.
At the time of the audit, only 15 of the 55 companies with the highest emissions had applied for funding under the initiative, and 2 companies had signed an agreement. The application process is long and complex, requiring companies to spend an average of 407 hours on it. This probably didn't help the department attract more applicants.
Only 2 large and 15 smaller emitters had signed a contribution agreement, for a total value of $3.2 billion. However, only five of these companies had signed an agreement to reduce their greenhouse gas emissions. These commitments amounted to just 6.2 megatonnes of greenhouse gases, representing less than 1% of the country's total emissions.
We also found that there was no industrial decarbonization policy that involved all relevant government organizations. Such a policy would provide Innovation, Science and Economic Development Canada with a clearer picture of which industries are most in need of funds to reduce emissions.
Our audit uncovered significant gaps, and the department provided vague responses to our recommendations. I am therefore concerned about what the department plans to do to address these gaps.
Mr. Chair, this concludes my opening remarks. We look forward to answering any questions you may have.