Thank you, Mr. Chair.
Thank you again to the officials for the work that you do for Canadians.
In regard to your comments last week, Mr. Moffet, you mentioned to this committee that part of the government's plan includes, obviously, a carbon tax or, as you like to refer to it, a price on carbon. You also mentioned that there would be further need for regulations for certain elements and for environmental policy.
However, you also said there would be a need for innovation. You said specifically that there would be market failures, thus innovation would be necessary. By “market failures”, did you mean market failures as a result of markets not being properly formatted or created in a way that they can function smoothly? Or did you mean market failures as in certain industries—let's say, paper and pulp in British Columbia—where if the price of carbon goes up too high, then subsidies would be necessary for them to operate in a cost-competitive atmosphere?