The current study explores the role of fiscal policy in promoting the long-term energy efficiency of Canada’s industrial sector, with a view to accelerating energy efficiency energy in a way that leads to long-term reductions in energy-based carbon emissions. [...] Nevertheless, the best way to understand the full scope for improvement is to consider second law efficiency – the ratio of energy input of a device to the minimum amount of energy theoretically needed to perform a task. [...] But if the electricity is generated in a distant thermal plant, the ratio of the chemical energy of the plant’s fuel (say natural gas) to the electricity it produces may be only 40%, the efficiency of the plant. [...] After the final item of property in a CCA pool is sold or otherwise disposed of, the taxpayer can claim the remaining UCC as a “terminal loss.” If the amount deducted from the pool on the sale of an asset (the lesser of cost or proceeds) exceeds the UCC of the pool, this excess amount is added to income as a recapture of depreciation. [...] The energy and emissions described in the tables below correspond to the CIMS sub-model universe, which may differ in some cases from Statistics Canada, CEOU or industry association views of the industry.44 The universe “picture” of the sub-models is discussed along with the sub-sector baseline trends.