Thank you very much.
Good afternoon, ladies and gentlemen.
Thank you for the opportunity to speak to the committee today.
My name is Ian Thomson. I'm the president of Advanced Biofuels Canada.
I would like to begin by acknowledging that I'm speaking with you today from the traditional and unceded territory of the Squamish Nation.
Our trade association members include global biofuel producers and technology developers, with over 23 billion litres of global advanced biofuel capacity.
Time is brief, so I'll speak directly to the status of clean energy investments in Canada.
You've heard this from previous witnesses this morning, but on August 16, the U.S. administration signed into law the Inflation Reduction Act, or IRA. With its $369 billion U.S. in clean energy provisions, the U.S. has clearly thrown down the gauntlet in the race to capture economic advantage in the global manufacture of clean fuels. The IRA's tax credits and funding programs create material challenges to the competitiveness of clean fuel capital investments and the production and use of clean fuels in Canada.
The IRA has cross-cutting implications for future clean energy production. It will drive clean energy investments in low-carbon electricity, hydrogen, and clean fuels to the U.S. Without immediate and focused efforts to create balanced investment conditions in Canada, our clean energy projects are imperiled.
Our recommendations, which we'll submit in a more detailed document to the committee, focus on new measures necessary to mirror U.S. actions.
One is to establish a refundable low-carbon fuel production tax credit in the Income Tax Act to mirror the IRA clean fuel production credit, which comes into force on January 1, 2025.
Two is to amend the Greenhouse Gas Pollution Pricing Act to fully exempt low-carbon-intensity fuels from the fuel charge. The exemption should require registration and compliance under the clean fuel regulations.
Three is to revise the proposed federal carbon capture, utilization, and storage tax credit by converting the credit design to a production tax credit that mirrors the new IRA 45Q scope and credit rates.
Four is to amend the newly established zero-emission technology manufacturing federal income tax rate cut to apply to all low-carbon-intensity fuel manufacturing registered under the CFR.
In closing, I would simply say that the U.S. has taken action, putting Canada at a real crossroads with respect to its clean energy future. Generational clean energy capital investments are being drawn to the U.S. market under the IRA framework. Without immediate action to restore balance in north-south clean energy trade, Canada will forgo most of the economic benefits of the low-carbon economy, and our reliance on imported clean energy products, such as clean liquid fuels and low-carbon hydrogen, will be increased.
Thank you for the opportunity to appear before you today. I look forward to your questions.