Very well, Chair, and thank you. I'll recommence right where I left off.
Environmental and climate change considerations are key ingredients in many of the government's decision-making processes, including in its funding decisions. Such considerations are taken into account by departments and agencies when they develop funding requests, such as in relation to the annual budget. Indeed, it is mandatory by cabinet directive for each funding request submitted to the Minister of Finance to be accompanied by a strategic environmental assessment prepared by the lead department or agency.
In addition, since last year, the government has been piloting a climate lens to support funding in other decisions. This additional tool integrates enhanced climate analyses into the consideration of budget and cabinet proposals. At present, the pilot applies to proposals from seven departments, including Natural Resources Canada.
The Department of Finance is also responsible for advising the Minister of Finance on tax policy matters. While the primary role of the tax system is to raise revenue to finance government services, programs and transfers, it may also be used directly as an instrument to achieve economic and social objectives.
With respect to natural resources, over recent years, the tax system has been used to develop and deliver certain government policies aimed at facilitating Canada's transition to a net-zero economy. This includes the introduction of a new investment tax credit for carbon capture, utilization and storage, and a reduction of 50% in the federal tax rate on income derived from the manufacturing of certain net-zero technologies and clean energy production, as well as a new enhanced mineral exploration tax credit for critical minerals. More recently, the government announced the introduction of a new refundable investment tax credit for clean technologies, as well as its intention to consult on a carbon intensity-based approach to support the production of clean hydrogen.
These measures play an important role in supporting the transition to a net-zero economy while ensuring Canada remains competitive in attracting investment in key areas such as clean technologies and renewable energy.
That concludes our comments from the Department of Finance. We'd be pleased to take the committee's questions.