Environment Committee on May 5th, 2022

[Miodrag Jovanovic]

I can try to answer that. I believe what you're suggesting here is the nature of the trade-off between ensuring that we're still competitive in this area while ensuring that we're meeting our environmental objective in a way.

[Lloyd Longfield, Liberal, Guelph, ON]

That's correct.

[Miodrag Jovanovic]

The role of the investment in CCUS is actually a good example of this approach because, maybe on the one hand, you can say, we do have this output- based pricing system for large emitters with a given stringency that will increase over time. I cannot speak to it. That's more for ECCC, but it's there. At the same time, we have this investment tax credit that encourages these same players to invest in a technology that would help reduce their emissions.

As for where these both meet, I would explain the existence of both as follows: With respect to the level of stringency, the concern is that you have to increase stringency in a manner that's not too harsh on the sector such that it affects employment, for instance. That's one thing to calibrate this properly, which leads to your argument about international competitiveness. On the ITC side, they're actually to encourage those who can, those who have access to technologies, to actually implement those sooner rather than later. Even if they may already meet their regulatory obligations under the OBPS, we want them to go further and more quickly. That's the—

[Lloyd Longfield, Liberal, Guelph, ON]

The tax credit does not include enhanced oil recovery.

[Miodrag Jovanovic]

Exactly. It does not.

[The Chair, Liberal, Francis Scarpaleggia]

Thank you.

Thank you to the witnesses.

I'm going to ask if there's a motion to adjourn, but before I do, I just want to mention that on Tuesday, in addition to going over the first draft of the report on nuclear waste, we're going to start by giving drafting instructions to the analysts for this particular study, the fossil fuels subsidy study.

Do I have a motion to adjourn?

[Colin Carrie, Conservative, Oshawa, ON]

Could I just make a quick point of order, Mr. Chair?

Could I just confirm that the department will provide the committee with the estimates and the consultations with industry and provinces on how eliminating fossil fuel subsidies or related tax measures would impact fossil fuel production, greenhouse gas emissions, employment, investments and our competitiveness internationally?

I did ask those questions and I believe we weren't able to get the answers to them. Thank you.

[The Chair, Liberal, Francis Scarpaleggia]

I believe Ms. Geller said they were going to get you some information on the consultation.

I don't want to put words in your mouth, Ms. Geller.

[Hilary Geller]

We are able to provide information on the consultation that we held in 2019. It won't necessarily have all of the elements the member is referring to, but it will be complete in terms of what we did in 2019.

[The Chair, Liberal, Francis Scarpaleggia]

Okay. Thank you.

[Colin Carrie, Conservative, Oshawa, ON]

Thank you very much, Ms. Geller.

[The Chair, Liberal, Francis Scarpaleggia]

There is a motion to adjourn.

I don't see any objection, so I'll assume there's unanimous consent.

(Motion agreed to)