Part of what this proposed backstop bill does to help deal with the competitiveness issues is...output-based pricing, which is a good idea. Basically, major producing firms and exporters will still have all the incentive to reduce, but the total cost of carbon price to them will be reduced dramatically. So, you get the benefits of a price without all the economic costs.
But to add to that incentive, basically what a carbon price does is it incentivizes these firms to spend a bunch of money adopting leading-edge low-carbon technology, which is a good thing. It positions them for where the economy is going. In the short run, it's still a cost. It's still an investment.
If you give an accelerated capital cost allowance, it basically reduces the cost of investing in the very low-carbon technologies that you want the firms to invest in. That saves them money, but it saves them money in a targeted way by promoting investment in the kinds of clean technologies we want. And it's a tax incentive that promotes investment in Canada. The money has to be spent here in order to get the credit for it.
If you think about the things the U.S. has done, you'll remember they brought in a 100% capital cost allowance for anything, including a coal plant. That's not a great idea. But targeting it in Canada to support investment and the kinds of technologies that we want to prepare our economy for in the future is a really good win-win solution.