Thank you, Mr. Kalesnikoff.
The list of priorities begins with analyzing or diagnosing the issue. This means that we must acknowledge that this industrial sector is by no means relegated to our heritage or folklore. It's a thoroughly modern industry. The primary driver for cutting down and processing a tree is the production of construction materials. Given the unprecedented housing crisis, we need to understand that the cornerstone of housing affordability is the two‑by‑four, meaning lumber. That's the first point.
Second, we must recognize that we've experienced a rather unusual disruption in the North American lumber market in recent months. Mr. Kalesnikoff and I described this phenomenon in our report using graphs of North American lumber consumption.
The lumber market has always been self‑contained. Canada and the United States produce lumber. Canada and the United States consume lumber. Since the invasion of Ukraine, a phenomenal amount of European lumber has become available. This lumber has been shipped to meet North American needs.
We also have the whole trade environment and the current global trade chaos. We've lost sight of this rather fundamental aspect needed to fully grasp the current challenge. The direct outcome of this is that North America has always had excess lumber production capacity. Lumber is a key material in housing construction and residential construction.
Today, we're relying on lumber from outside North America to meet the construction needs of Canada and the United States. This is completely unprecedented. This means that we're just a few percentage points away from the consumption level of 2021‑22, when prosperity reigned for everyone. For consumers and builders, it was also a period of shortages and high inflation.
Let's get back to the basics. When it comes to public policy, government guidance and the allocation of public funds, lumber becomes absolutely strategic. Given that critical and strategic minerals are part of this country's future, forest resources are just as critical and strategic for this country's future. We have a rock‑solid foundation to propel us forward.
However, there are challenges. We talked about capital. We need this $10 billion fund to begin the modernization [Technical difficulty—Editor] who lost confidence in the country's forest conditions. We need to review the regulatory framework and to clean up a few things. This isn't about creating a lenient environment for the forestry sector and forestry activities. Companies have a vested interest in ensuring that clients and markets trust our forestry practices in this country. We have every reason to trust in the integrity and credibility of this country's forest resources.
Let's talk about market access. The Canadian railway system isn't working. It's a barrier to interprovincial trade. Across this country, it's a barrier to competitiveness that prevents us from expanding into foreign markets. This is certainly true for the United States, but it's also true for other markets. To remain relevant and competitive in foreign markets, we must move goods from factories to seaports. We must urgently address the railway system—which isn't working—right here and now. That said, I don’t mean to criticize the two companies that hold this monopoly. However, the system clearly isn't working.
I'll come back to the priorities. For the past 10, 15 or 20 years, the National Building Code has been calling for more wood‑based construction. Yet the real momentum hasn't kicked in. In the United States, states such as California and Colorado have adopted regulations that cap greenhouse gas emissions per new square metre of construction. Canada wants to achieve this by 2030. We have an opportunity to speed things up and boost the market. Ultimately, a series of measures to increase domestic wood consumption are being proposed to replace up to a quarter of the American market.