Hi, I'm Judy Meltzer, from Environment and Climate Change Canada, and I'll give you the first part of the response and then turn to my colleagues to add.
Thank you for that question. The short answer is yes, insofar as there is close collaboration and folks across the departments who are working on this are working together. I will flag that while competitiveness is a broad theme that cuts across these various pieces of analysis that are under way, there are some important differences, which is why they're being done in different ways.
The one I'll speak to is with respect to the federal carbon pollution pricing system and the approaches, as you said, for the big, heavy industry—the output-based pricing system that we're still in the process of developing. When you reference the phase three analysis, what you're referring to is the analysis that's still very much under way. As you've said, we've done a three-phase systematic process for those sectors that will be part of the federal output-based pricing system.
The first phase is looking at a static analysis, looking at historical data. There are some commonly used metrics to assess competitiveness. When we talk competitiveness in terms of pollution pricing, what we're concerned with is the risk of carbon leakage, and how it may impact a shift of economic activity to other jurisdictions with different types of polices.
The first phase is based on historical data, static testing. The second phase is taking the same metrics—and these are used in other systems, including Alberta's—and looking at it through the dynamic model we have at Environment and Climate Change Canada, which is used and referenced. We have a third phase under way to recognize that there are additional considerations. We are looking to industry to provide additional considerations, whether it's to their particular facilities, their competitors in other jurisdictions or the impact of indirect inputs, etc.
We're in that process, but that's very much part of feeding into the design of the output-based pricing system regulations. For that reason, this is a very particular analysis.