GATINEAU, QC, June 28, 2023 /CNW/ - Putting a price on carbon pollution is the most efficient means to fight climate change, while making life more affordable for Canadians. Not only does carbon pollution pricing ensure it is no longer free to pollute anywhere in Canada, but in provinces where the federal pollution pricing system applies, 8 out of 10 Canadians get more money back than they pay.
Beginning July 1, 2023, the federal fuel charge backstop will take effect in Nova Scotia, Prince Edward Island, Newfoundland and Labrador, and New Brunswick, replacing the existing consumer pollution pricing systems currently in place. This means the majority of households in Atlantic Canada will soon receive pollution price rebate payments that, for middle-class and lower-income people especially, will more than offset what they pay as a result of the federal system.
For example, a family of four will receive quarterly pollution price rebates, called Climate Action Incentive payments, in the amount of:
$248 in Nova Scotia
$240 in Prince Edward Island
$328 in Newfoundland and Labrador
$184 in New Brunswick1
All proceeds from the federal fuel charge are returned to their jurisdiction of origin. Ninety percent of direct proceeds from the federal fuel charge will be returned to individuals and families, and residents of small and rural communities are entitled to a 10 percent supplement beyond the base amount, in recognition of their increased energy needs and reduced access to cleaner transportation options, such as public transportation. The remaining 10 percent of the proceeds will go to small- and medium-sized businesses and Indigenous groups.
Since 2019, every jurisdiction in Canada has had a price on carbon pollution. Canada's approach gives provinces and territories the flexibility to implement the system that works best for them: either their own pollution pricing system, or the federal pollution pricing system. The latest National Inventory Report of Canada's emissions shows that emissions fell by 53 megatonnes (7.3 percent) between 2019 and 2021, even as Canada's economy bounced back from pandemic shutdowns.
Canada's approach to pricing pollution is working. It is spurring new and innovative approaches to reduce emissions, use energy more sustainably, and save households money. Estimates show that pollution pricing will contribute to over a third of the total reductions in emissions that will occur between now and 2030.
Quotes
"Canadians are concerned about the cost of living and about climate change. They are concerned about the impacts of extreme weather events on our communities, our health, and our economy. That is why we have created a pollution pricing system that helps with both. Pollution pricing is the most efficient, effective, and affordable way to lower our emissions and fight climate change. For Atlantic Canadians, the federal price on pollution will put more money back in the pockets of most families, while helping to protect our environment at the same time."
– The Honourable Steven Guilbeault, Minister of Environment and Climate Change
Quick facts
- Pricing carbon pollution, a foundational pillar of Canada's climate plan, is the most efficient policy to reduce greenhouse gas emissions and drive clean innovation. It creates a financial incentive for businesses and households to decide for themselves how best to reduce emissions, while returning money directly to families to spend as they see fit.
- The Government of Canada does not keep any direct proceeds from carbon pollution pricing. All direct proceeds remain in the province or territory of origin.
- Starting in July, families in Nova Scotia; Prince Edward Island; and Newfoundland and Labrador will receive a Climate Action Incentive rebate payment every three months by cheque or direct deposit. As is the case in other provinces where the federal fuel charge applies, residents need to file their annual tax return to receive their pollution price rebate payments.
- 1Because New Brunswick requested the federal economy-wide carbon price more recently, households in New Brunswick will receive their first pollution price rebate payment as a double payment in October 2023, with a second quarterly payment in January 2024 ($368 and $184 respectively, for a family of four).
- Residents who reduce their personal carbon footprint—for example, by replacing their oil furnace with an electric heat pump—come out even further ahead, since they reduce the amount they spend on the federal fuel charge while still collecting the full pollution price rebate payment.
- In provinces where the federal fuel charge is being applied, a 10 percent supplement to the pollution price rebate payment base amounts is provided to individuals and families residing in small and rural communities, in recognition of their increased energy needs and reduced access to cleaner transportation options.
- Fishers and farmers are exempt from paying the federal fuel charge on gasoline and diesel used for eligible fishing and farming activities. Fuel charge proceeds from natural gas and propane use by farmers are returned directly to farmers via a refundable tax credit.
Related products
Associated links
- How Carbon Pricing Works
- Climate Action Incentive Payment
- Making Home Heating More Affordable for Atlantic Canada and Other Regions
Environment and Climate Change Canada's Twitter page
Environment and Climate Change Canada's Facebook page
SOURCE Environment and Climate Change Canada
Kaitlin Power, Press Secretary, Office of the Minister of Environment and Climate Change, 819-230-1557, [email protected]; Media Relations, Environment and Climate Change Canada, 819-938-3338 or 1-844-836-7799 (toll-free), [email protected]
Share this article