International Trade committee  From the chemistry sector, I haven't seen anything that disadvantages us. Again, I would say that the challenges we face are largely self-inflicted. I do worry when we look at some of the other sectors, such as critical minerals, and when we look at the supply chain, but again,

International Trade committee  I would say that's very accurate.

International Trade committee  I talked about two of the projects that are coming into commercial production in 2023 in our sector. Those started construction in 2014 and 2015. If you're going to build a $5-billion, $7-billion or $10-billion chemistry facility, that's a five- to seven-year activity. That's why

International Trade committee  No, I don't think so. I do think people will be re-evaluating, again from a due diligence perspective. If you were proposing to build a $5-billion plant in Canada prior to the IRA, your shareholders and your board will be demanding that you have another look at that and convince

International Trade committee  Just to be clear, the chemistry sector has five pathways to decarbonization, and the IRA covers all of those—plus, plus, plus. If you talk about those individually, you can start with hydrogen production and utilization. For example, we have one major proposal by Dow Canada in

International Trade committee  Again, in Canada there are opportunities to apply for certain incentives. You may or may not get those, and again, you cannot build them into your business case.

International Trade committee  You will under the IRA. They're very transparent.

International Trade committee  Second, you would have carbon capture, utilization and storage. If you go back, the U.S. had the 45Q tax credit. Canada proposed an ITC, an investment tax credit, for carbon capture. Our estimate was that the 45Q was about twice as robust as the Canadian proposal. Under the IRA,

International Trade committee  You might be on the naughty list and not get it. What are the criteria? That's the second one. Electrification is another example that's covered in the IRA. There's a lot of information about electrification. There are many opportunities in our sector. You could be looking at sm

International Trade committee  Thank you, Madam Chair. Thank you, committee members, for this timely and important study, and also for the opportunity to be before you in person today. Chemistry and plastics is your third-largest manufacturing sector in Canada, with about $90 billion in annual shipments. Ei

Industry committee  Well, a decade is a better number. In the last decade, half of all manufacturing investment, something north of $400 billion, has gone into the U.S. chemistry industry. In Canada, we have two very important projects, one in the heartland area, but it's about $7-$10 billion in the

Industry committee  Correct.

Industry committee  Let's talk about what's changed in Alberta. Why did we go from one project worth less than $5 billion—well, there were two. One's currently on hold and not moving ahead. One that's near completion is about $5 billion, but now we suddenly have $30 billion. What most of the Ameri

Industry committee  Part of the idea behind the investment tax credit for carbon capture is that it will stimulate some of that activity, but what we have in Canada right now is less than a 42% return on the cost of capital—not even a return, but a reduction in the cost of capital—whereas what the A

Industry committee  I would defer to Justice Canada and whatever the Crown's duty to consult is. This is a very important issue. If it's done wrong, you put us back to square one.