Thank you, Madam Chair and committee, for the invitation to speak today.
My name is Sandy Marshall. I am an advisor and project manager with Bioindustrial Innovation Canada, also known as BIC.
BIC is a national not-for-profit business accelerator that provides critical strategic investment, advice and services to developers of clean, green and sustainable technologies. We have a track record of successfully supporting early stage companies across the country in multiple sectors. For example, some of our portfolio companies include leading lithium-ion battery recovery companies and renewable fuel producers working to decarbonize our transportation sector by creating sustainable aviation fuel.
We have a history of success. Our portfolio companies are on track to achieve over 13 megatonnes of GHG reductions by 2030, while at the same time supporting thousands of jobs. Simply put, BIC knows and understands the clean, green and sustainable technologies space and the opportunities that Canada has to become a leader and create thousands of good-paying jobs at home.
The introduction of the Inflation Reduction Act by the U.S. poses a threat to this industry in Canada. Even prior to the IRA, many early stage companies have had to make tough decisions on where to grow their business: at home or south of the border. The IRA will help make that decision just a bit easier for many of these companies. The massive subsidies being provided, such as the investment tax credit of up to 50% and production credits for clean fuels—including for sustainable aviation fuel, as I mentioned—mean that there is an even larger reason for Canadian companies to shift their interests abroad to gain access to these incentives and a significantly larger market and workforce.
The case of sustainable aviation fuel production is particularly telling. For every litre produced in the U.S. under the IRA, 62¢ Canadian is provided as a tax credit on a direct-pay basis. If Canada is serious about decarbonizing aviation and about having the green jobs associated with this decarbonization in Canada, a production tax credit equivalent to the 62¢ per litre in the IRA should be included.
Lacking a stronger response from the Canadian government, the reality is that it will be next to impossible to grow sustainable projects here in Canada. Beyond matching or exceeding available opportunities that the U.S. government has introduced, our government should also look at other complementary measures, such as supporting organizations like BIC, which can help bridge the gap and provide strategic technical support to early stage companies, and provide Canada with a chance to attract and retain globally significant green projects.
It should also be highlighted that the IRA builds on a number of other programs, including the climate-smart commodities program. It helps to identify, validate and provide technical, financial and market assistance to primary producers and processors—which is BIC's primary focus. They will be the foundational stakeholders in the U.S. decarbonization strategy, as well as suppliers of primary inputs into these IRA-funded technologies.
Thank you for this opportunity to speak today. I'm happy to take the committee's questions.