International Trade committee  Thank you. We have been using the SIF program. I would say that the first iteration of the SIF program lacked, in our evaluation, the required agility and speed of delivery, but it worked. This is what backed the ELYSIS project initially, to develop the inert anodes that will bring us to produce without any CO2 emissions in the future.

International Trade committee  We write the same thing every year during the pre-budget consultations, but we're still waiting. We do the same for the Quebec government, but it has made certain adjustments. Nevertheless, the most important parameter is accelerated capital cost depreciation, to which we are not entitled as an industrial sector .

International Trade committee  Allow me to give you some additional details. We've been wondering what Canada can do about the United States Inflation Reduction Act of 2022. We'll never be able to hold our own, because we're not big enough and we don't have the same resources. On the other hand, even though we can't compete, we can rely on our natural comparative assets and advantages.

International Trade committee  Thank you for that very good question, Mr. Martel. I'm going to link it to a question I was asked earlier by one of your colleagues. Canadian plants underwent a wave of modernization over the past 15 years. The average age of these plants today is 35 years. We are accordingly reaching a decisive turning point at which we need to consider a new wave of investment, meaning that once again, billions of dollars will be required for large plants like aluminum smelters.

International Trade committee  Yes.

International Trade committee  You're right. It's the catalyst that we will need; a restructuring of the fiscal framework to allow for major industrial investment while decreasing associated risk. Automation will have to be used increasingly, along with artificial intelligence and machines that are designed here in Canada and Quebec to meet these needs.

International Trade committee  Well, I would say that it means the same as it does for the rest of the industry in Canada, the other primary smelters, because it's all a matter of supply and demand in North America. The Kitimat plant is certainly a world-class operation that ships into two markets, which are Asia and North America.

International Trade committee  China took over the planet's aluminum in the past 15 years. It went from 10% of the world's production to 56% of the world's total production. It's taken over the markets with subsidized metal. Today, 76% of the world's aluminum production capacity is state-sponsored around the world.

International Trade committee  Honourable members, Madam Chair, thank you for inviting us as a witness on the IRA. IRA is full of opportunities for Canada as it onshores demand from within USMCA: solar power, nuclear power, advanced manufacturing, home energy supply improvement, home energy efficiency upgrades, EV incentives and U.S. postal service electrification.

International Trade committee  It's very hard for me to answer this question. I think it's more Mr. Zaghib who was handling this subject, if I may say.

International Trade committee  That's okay.

International Trade committee  I'm going to reply from the industry standpoint again. Taking what we discussed earlier into consideration, by which I mean the need to reduce the carbon footprint and offer consumers solutions that help to do that, the best policy should reward those who purchase vehicles made from materials that have the smallest carbon footprint, namely steel and aluminum products made in North America.

International Trade committee  As we say in English, that's how you get the most bang for your buck. For every dollar spent on a vehicle, there would be much more of an impact on decarbonizing the planet because the production cycle would create the lowest possible level of carbon and deliver a vehicle that emits as little carbon as possible.

International Trade committee  As I mentioned at the outset, in the current market context, 90% of the aluminum produced in Quebec and British Columbia is sold to the United States. What's important to understand here is that Americans, who consume 6 million tonnes of aluminum a year produce only 1 million tonnes.

International Trade committee  I totally agree with Catherine. Our industry has the lowest carbon footprint in the world, and it is moving on to no carbon footprint eventually, with the Elysis project. [Technical difficulty—Editor] anchored in two provinces that have carbon pricing mechanisms: namely, B.C. with its tax, and Quebec with its cap and trade system.