Thank you. I am encouraged by some of the more recent dialogue on backing away from hard, rigid emissions targets and looking at results and climate competitiveness.
I look at one policy that has worked and is working to both reduce emissions and attract investment—industrial carbon pricing. I believe it's effective at doing both. People ask how it attracts investment. Investment decisions for many projects—and I work on a lot of projects in the energy transition space—hinge on being able to create revenue. Revenue can be crated by selling the carbon credits that a project generates. The economics of a lot of these projects are not there without a price on carbon. The carbon credits are the one thing that can make some of these projects work.
If it's priced properly—and by priced properly I mean it's not so high that you see carbon leakage, and it's not so low that it's ineffective—and if it's left to the provinces to implement, it can work very well. I say the provinces must implement, because they're closer to the industries. They regulate those industries already, and they know them extensively. If carbon markets are performing properly, we don't need to layer other regulations on top. We don't need an emissions cap. The TIER system in Alberta can bring down emissions in oil and gas and power generation. That's one tool that can be effective in climate competitiveness.