Thank you.
Good afternoon, ladies and gentlemen.
Thank you for the opportunity to speak to you today. As the chairman said, my name is Don Roberts, the president and CEO of Nawitka Capital Advisors. I appear before you today to speak on behalf of Advanced Biofuels Canada, also known as ABFC.
Nawitka Capital Advisors is an investment bank focusing on the renewable energy and clean-tech sector, with the specialty emphasis on clean fuels. Prior to starting Nawitka in 2013, I was vice-chair of investment banking at CIBC, where I founded the renewable energy and clean technology group.
Advanced Biofuels Canada is the national voice for producers, distributors and technology developers of advanced biofuels in Canada. Based on a November 2019 survey, the ABFC members are collectively working on projects representing just over $12 billion on new capital investment projects in Canada. I'm here today to speak to ABFC's analysis of how to stimulate private sector investment in clean fuels production capacity and support clean fuel use in Canada.
In 2019, Canada's national clean fuel industry sectors conducted a review of investment conditions to identify measures to increase investment in the domestic production of clean fuel and support electric vehicle adoption, with two key objectives. One is meeting climate action commitments, and the second is supporting successful implementation of the federal clean fuel standard.
The review concluded with several overarching recommendations for budget 2020. I'll summarize those in a moment, but just before doing that, I want to note that on any recommendations that are coming out of this, to be truly effective, it's important that government really execute TLC. While we all love tender, loving care, what I'm really talking about are transparency, longevity and certainty with regard to the government's actions, and to harness market forces instead of working against them.
The ABFC, as I said, has three key overarching objectives. The first one is that Canada start by establishing a comprehensive, long-term Canadian clean fuels strategy to address the climate emergency, support sustainable growth, and ensure competitiveness of the production and use of clean fuels in Canada. It's important to note that Canada's clean fuels strategy is not a bottom-up approach that requires us to start from scratch. A lot of work has already been done. We do need, however, to connect the various disparate parts.
ABFC is recommending that the clean fuels strategy start by establishing a clean fuel signal. That's by, first of all, setting clear emissions reduction and economic development goals for the non-fossil clean fuels through 2020. Second is setting differentiated targets for clean fuel production and use in Canada, covering a series of products, including renewable fuels and other non-fossil, low-carbon liquid fuels; renewable gases like biogas, renewable natural gas and renewable hydrogen; renewable solid fuels like wood pellets and torrefied biomass; and lastly, electric vehicles. The third issue is having a strategy that would actually enact the clean fuel standard regulations to meet the clean fuel goals and targets. This will only be achieved by actually increasing the 2030 target and setting a minimum requirement for clean fuel use. That's the first recommendation.
The second one is that Canada commit core funding through 2030 to directed initiatives to attract private capital to build clean fuel production capacity and infrastructure. Specifically, the brief on Canada's clean fuel strategy identifies a number of specific measures to support private sector investment in this space, but a key one is to establish a $2.5-billion clean liquid fuel capacity-building fund through the strategic innovation fund.
The third recommendation is that Canada commit support to expanding Canada's clean fuel technology and innovation systems through targeted measures. By this we mean things like refundable tax credits, accelerated capital cost allowance, clean growth capital grants and core applied research funding.
Advanced Biofuels Canada has taken the initiative to develop the core of a Canadian clean fuel strategy, which includes more detailed recommendations for the committee's consideration for budget 2020 measures. As translation of the full brief is still in progress, ABFC asks for your leave to submit its brief to you in the coming days.
In conclusion, capital will not flow without TLC and public policy. Private investors can mobilize capital to the clean fuel space, but they need a clear and stable signal, from government, that's meaningful. With proper implementation, Canada’s clean fuel strategy will get the job done. The good thing is that the benefits transcend the politics of climate action.
Before concluding, I would like to highlight five of these key benefits in particular.
First, the economic benefits we've identified will manifest themselves throughout Canada. Second, Canada has established commercial supplies of sustainable crops, forestry, and agricultural residues, as well as clean, renewable power for electric vehicles. We already have a robust, globally competitive platform to stand on. Third, clean fuels support farmers, foresters and rural communities, those often left behind. Fourth, advanced biofuel technologies will help remote communities, especially in the north, get off diesel power, reduce industrial pollution, and capitalize on economic opportunities from waste management. Lastly, clean fuel investments will create long-term, clean energy jobs and support sustainable growth.
Now is indeed the time for some bold action in budget 2020.
Thanks for the opportunity to appear today. I am happy to entertain your questions.