Thank you.
My name is Paola Mellow. I'm the executive director of the low-carbon fuels division at Environment and Climate Change Canada.
If I understood your question correctly, it was with respect to carbon pricing.
What we are talking about here today is an amendment to the Canadian Environmental Protection Act. Carbon pricing is not associated with that act. We are speaking about the clean fuel regulations. These regulations impose a life-cycle carbon intensity reduction requirement on fossil fuel producers and importers in Canada, like, for example, refineries.
Basically this change enables a compliance fund mechanism. What that means is that regulated parties—for example, refineries—will be required to come into compliance with their obligations every year. If they choose to come into compliance with 10% of their annual obligation through contributions to the fund, they will need to do that in their compliance year. The fund will then have five years to deliver real short-term reductions with those funds.