I'm happy to attempt an initial response. Mr. Verlez can then take over.
Clearly, a regulatory framework encourages good behaviour. Let's take the example of a big oil company in the Netherlands or the United States investing in production assets like low-carbon biofuel. If they were to use the technology in our Varennes project, they would produce a carbon-negative fuel. These days, in fact, it costs less to produce that molecule than to not comply with the regulations. So as you can see, in creating what we unfortunately call a “stick”, we are encouraging the world's oil companies to invest in their production capacity, to increase their production, and therefore to behave properly until we get either to the level of compliance we want or to where we have to impose a cost on non-compliance.
Obviously, a framework like that provides an incentive to invest. Just compare the current price of methanol in the Netherlands to the price in Canada. In the Netherlands, it costs $1.37 Canadian per litre, while in Canada it costs 44¢ per litre. It's the same molecule with the same carbon intensity. The only reason for the gap is the regulatory environment, which forces a company like Shell, for example, to sell the molecule to the part of the world where it makes the most money and where the cost of non-compliance is the highest.
The unfortunate thing is that, because we have no regulations in Canada, even though we have production assets and we can produce low-carbon or carbon-negative ethanol—such as we were producing in Edmonton that was -20 carbon intensity in the British Columbia system—it's now more profitable to sell it in the U.S., in California, rather than in Canada. So California benefits from the reduced CO2 levels.