Some Canadians across the country are receiving the first carbon tax rebate of the year, as part of the federal government’s Climate Action Incentive payment program.
Starting on Monday, people in select provinces where the federal fuel charge applies will receive their rebate through direct deposit or by cheque. This includes Ontario, Manitoba, Alberta, New Brunswick, Nova Scotia, Saskatchewan, Prince Edward Island and Newfoundland and Labrador.
Eligible Canadians should automatically receive the payments as long as they have filed their income tax and benefit returns for the previous year.
Environment and Climate Change Canada says a family of four will receive payments of the following amounts:
$386 in Alberta
$264 in Manitoba
$184 in New Brunswick
$328 in Newfoundland and Labrador
$248 in Nova Scotia
$244 in Ontario
$240 in Prince Edward Island
$340 in Saskatchewan
One single adult in Ontario can expect to receive a rebate of $122.
The government says eight out of ten households will receive more money back in rebates than they pay as a result of the carbon tax. Meanwhile, residents of rural areas receive an extra ten per cent beyond the base rebate amount.
In April, the federal government is aiming to double the rural rebate to 20 per cent due to the increased energy needs of rural residents and their reduced access to cleaner transportation options.
The rebate is part of the government’s commitment to pollution pricing and its goal to meet targets of cutting emissions by 40 per cent by 2030 and achieve net-zero emissions by 2050.
“Putting a price on pollution and returning the proceeds to eligible Canadians through rebates provides support for individuals and families while also maintaining an incentive to reduce emissions,” Environment and Climate Change Minister Steven Guilbeault said in a statement.
The rebates will be rolled out every three months. The next payment is expected to be sometime in April.
WHAT IS CARBON PRICING?
Since 2019, Canada’s carbon pollution pricing system has been in effect. The government introduced carbon pricing as a way to reduce greenhouse gas emissions which are fueling climate change. Furthermore, carbon pricing also creates a financial incentive for people and businesses to pollute less.
“Pricing carbon pollution is working in Canada. It is encouraging industries to become more efficient and use cleaner technologies, and it is spurring new and innovative approaches for cutting pollution, using energy differently, and saving money,” the government said in a release.
According to the government, 90 per cent of pollution pricing proceeds goes directly to Canadians, while the other ten percent goes towards supporting businesses, farmers and Indigenous groups.
The carbon pollution pricing system was created as a result of ongoing climate change events that are affecting Canadians and people around the world.
