Many more Canadians will begin receiving Ottawa’s climate action incentive payment starting Friday.
Between July 14 and July 21, Canadians in Atlantic Canada, as well as in Ontario and the Prairies, will get the tax-free payment through the Canada Revenue Agency, which is meant to offset the cost of federal pollution pricing.
New this year, residents in Newfoundland and Labrador, Nova Scotia and Prince Edward Island will be eligible for the payments. That is due to the fact Ottawa implemented its federal fuel charge in those provinces on July 1.
Until now, the climate action incentive payment only applied to residents in Alberta, Ontario, Saskatchewan and Manitoba. Provinces that don’t have a carbon pricing plan that meets federal standards are subject to the federal pollution pricing system.
The federal carbon pricing plan also includes a 10 per cent supplement for residents in small and rural communities.
Ottawa has said 90 per cent of direct proceeds from the federal fuel charge are delivered to individuals and families through pollution price rebates, which are made to eligible individuals every three months. The remaining 10 per cent of proceeds are provided to emissions-intensive, trade-exposed, small- and medium-sized enterprises and Indigenous groups.
The federal government has said pricing carbon pollution is “the most efficient policy” to reduce greenhouse gas emissions and drive clean innovation. The latest National Inventory Report of Canada’s emissions shows that emissions fell by 7.4 per cent between 2019 and 2021.
According to projections by the finance ministry, eligible Canadians are expected to receive the following:
In Alberta, an individual can expect $193, a spouse or common-law partner $96.50 and
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