Thank you, Derek.
In its recent annual report, Canada’s Net-Zero Advisory Body highlighted the forest sector as one of Canada’s seven priority sectors and specifically noted the competitive risks that stand before Canada’s forestry and steel sectors, given the aggressive subsidies and tax credits from the U.S.A. Inflation Reduction Act.
Finland and Sweden have embraced the carbon-capturing power of forests by creating integrated strategies and incentives to leverage the full forest-sector value chain. We need Canada to do the same or we risk falling further behind our global competitors.
In addition to the U.S. Inflation Reduction Act, the U.S.A. has doubled down on its forest biomass play by including forest biomass as something that is eligible for investment tax credits, but Canada has yet to respond. While budget 2023 included in detail the social, economic and environmental benefits that forest biomass can provide, it stopped short of including its enabling technologies in things that are eligible for investment tax credits, which has left us with a massive competitiveness gap vis-à-vis the U.S.
Including forest biomass technologies in the investment tax credit for clean electricity as well as the investment tax credit for clean technology manufacturing is essential for Canada to capitalize on its abundant forest biomass resource and to accelerate progress towards our climate goals.
We’re not just looking for financial tools and incentives. We're also looking for policy coherence. While the federal government took the necessary steps in budget 2023 to recognize forest biomass for its clean-fuel potential, its clean-fuel regulation is more ambiguous. Although designed to incentivize cleaner and greener energy, the clean fuel regulation, to date, still does not recognize the sustainability attributes of biomass sourced from Canada’s independently certified and audited forests, and we would like to see this fixed.
There are two other game-changing plays in the decarbonization space for the pulp and paper sector—lime kiln decarbonization and bioenergy with carbon capture and storage. I would be happy to speak to these opportunities in more detail during the question and answer period.
In closing, with a more deliberate approach on industrial strategy, a more inclusive approach on investment tax credits, better policy coherence and tailored programs to accelerate lime kiln decarbonization and bioenergy with carbon capture and storage, we can attract more investment to Canada, improve our global competitiveness position and do more to achieve our shared climate goals.
Thank you for your time and your attention today.