Thank you, Madam Chair.
Thank you to the witnesses for being here.
One thing is certain, and that is that so far, the hearings have told us a lot about how slow the Canadian government has been in dealing with the new American regulations. Even more importantly, they showed us how slow the government has been in responding to requests from the various Canadian sectors to help us become a leader in the energy transition.
Mr. Jean Simard, the president of the Aluminium Association of Canada, spoke to us about the importance of accelerated depreciation to encourage new investment in production infrastructure. He also mentioned a low-carbon footprint aluminum procurement policy, together with investment and innovation in recycled aluminum research and development. He further went on to say that the environment had to be more competitive on both the fiscal and regulatory fronts. These requests have been made for years. However, instead of becoming a pioneer or facilitator for the industry, the Canadian government has always waited for the United States to make the first move. Canada reacts afterwards. I believe this has to stop. We clearly need to move in a new direction.
This week, we heard another presentation that provided striking evidence, from Mr. Masterson, the chief executive officer of the Chemistry Industry Association of Canada. The Canadian chemistry and plastics sector is the third largest manufacturer in Canada with annual shipments worth approximately $90 billion. Eighty per cent of annual production is exported, most of it to the United States.
According to Mr. Masterson, the true value of the incentives provided by the Inflation Reduction Act, the IRA, and Canada's greatest challenge, is the transparency and certainty provided to investors. He also pointed out that we are paying a very high carbon tax which is steadily growing.
Some industries are fortunate to find themselves on the government's white list, and a number of representatives from these industries are here today. These hand-picked companies have access to federal subsidies for taxes, loans and other decarbonization incentives.
The problem, as Mr. Masterson explained it, is that the criteria for getting on the list are not transparent, clear or available to everyone. This means that not just any industry can be included in a business case, which places Canada at a disadvantage.
In the United States, on the other hand, no industry or company is on a blacklist. Everyone is on a whitelist. Everyone can consult the IRA and factor in its very real, very material and very accessible measures when preparing a business case for proposed industrial decarbonization projects.
During its appearance here on November 18, 2022, the Business Council of Canada mentioned that the 2022 fall economic statement lacked important details on investment tax credits for clean hydrogen technology. The Business Council of Canada added that incentives were more interesting and rules clearer in the United States.
Let's take the example of a company carrying out activities in Canada and the United States that wants to invest in reducing their carbon footprint.
Mr. Risley, from the standpoint of Canadian clean technology and clean hydrogen sector companies, how can a shortage of details affect investment decisions?