Thank you, Madam Chair.
I thank all of you for the opportunity to speak with you today.
I'd like to begin by acknowledging that the land on which we gather is the traditional unceded territory of the Algonquin Anishinabe people.
I'm here to speak on the importance of our country staying competitive globally and with our largest trading partner. If Canada does not align and have parity with the U.S. Inflation Reduction Act, significant opportunities could be lost in terms of new and existing jobs, investment and export potential.
The Canadian nuclear industry is a strategic asset for this country, both domestically and internationally. For over 60 years, Canada has been a global leader in the nuclear sector. We've built our sector on the solid foundation of CANDU technology, which is Canadian technology. Now the refurbishment projects at Darlington and Bruce are the country's largest clean energy infrastructure projects, representing $26 billion worth of investments. These are proceeding both on time and on budget.
These large-scale projects have provided the foundation for a robust and highly skilled supply chain and have opened opportunities for innovations associated with small modular reactors, enabling Canada to be a first mover in SMRs in Ontario, New Brunswick and, eventually, Saskatchewan and Alberta.
Over the course of 2022, the federal government has clearly and repeatedly indicated a strong role for nuclear on our path to net zero. The 2022 budget allocated funding for the further development of SMRs. We've seen numerous nuclear energy projects funded as part of Canada's strategic innovation fund. The Canada Infrastructure Bank announced nearly $1 billion in financing to help SMRs in Ontario.
However, these investments risk being squandered if our industry is unable to remain competitive, particularly in the context of the United States and their Inflation Reduction Act. The IRA represents a massive strategic competitive investment by the United States that, if not addressed here in Canada through its own policy response, will confer significant advantages to American nuclear energy firms, including investment and workforce attraction.
In the FES, the fall economic statement, the government highlighted the strategic importance of complementing and balancing the initiatives implemented in the IRA. The FES was a good start in positioning Canada to address the competitive imbalance imposed by the IRA, but more needs to be done to ensure that Canada does not lose its competitive advantage.
While the FES introduced measures to improve competitiveness, such as the investment tax credit, it's not yet clear how these credits will be applied to the broad spectrum of existing and potential new nuclear facilities in Canada.
However, while we are speaking of the need to remain competitive, ultimately we are committed to working closely with our partners in the United States, who are also looking for parity in the nuclear sector. We must remain cognizant of the fact that the structure of the power systems are predominantly provincially owned here in Canada, while in the U.S. most are privately held. Care must be taken when designing incentives to ensure cross-border competitiveness is maintained in this regard.
Within this context, the Canadian Nuclear Association recommends the following key points for consideration by this committee. They are also essential leading into the federal budget 2023.
Ensure that nuclear energy is included in the Government of Canada's clean taxonomy and the green bond definition.
Ensure that—just like with the IRA—government-owned utilities can equitably access benefits that were announced in the fall economic statement, including the investment tax credits.
Ensure that existing, refurbished and new large nuclear facilities are eligible under the ITCs and other financial instruments.
Equitably include existing, refurbished and new large nuclear facilities, SMRs, and companies engaged in the nuclear value chain in other federal government clean tax policies.
Support the export of Canadian uranium and CANDU technologies to global markets, which have now grown in importance because of increased vulnerability in terms of global energy security.
Lastly, modernize and align—domestically and internationally—regulatory regimes such as the Impact Assessment Act and the Canadian Nuclear Safety Commission to provide clear, predictable processes for the timely deployment of nuclear energy projects and infrastructure.
Over the coming weeks, the CNA, with its members, will conduct additional analysis on the implications of the IRA and the financial and other supports required to enable growth of the nuclear sector. We'll share these insights with the committee.
Thank you. I look forward to any questions.