Thank you, Mr. Simard.
We recently released new research and a new report exploring fossil fuel subsidies, and we found that there is a need to recalibrate the way governments—both federally and provincially—provide that support, whether through loans, spending or deferred investment. That spending needs to find a balance between investing in transition-consistent activities.
Governments need to be prudent about those market shifts—which Ms. Smith articulated are coming—and make sure that there is a return in terms of growth and economic activity, as well as emissions reductions from the public finance that governments use. There is a need to better calibrate how governments use their spending tools, absolutely. There's also a need to coordinate how they use spending tools with other policy instruments, such as carbon pricing or a cap on emissions in the sector.