Putting a price on carbon pollution is one of the simplest and most effective ways to reduce the greenhouse gas pollution that is causing climate change
April 10, 2024 – Gatineau, Quebec
Putting a price on carbon pollution is one of the simplest and most effective ways to reduce the greenhouse gas pollution that is causing climate change. Just as importantly, the federal carbon pricing system is designed to keep life affordable by putting money back into families’ pockets.
The Canada Carbon Rebate returns fuel charge proceeds to Canadians through direct deposit or cheque every three months in jurisdictions where the federal fuel charge applies, with the next quarterly payments starting to arrive in Canadian bank accounts and mailboxes as of April15.
Today, the Government of Canada is launching a new Canada Carbon Rebate estimator tool to help families find out their potential rebate amount, based on their unique circ*mstances. No background information is needed: answer four simple questions to find out how much you could receive.
- Canada Carbon Rebate estimator
Eight out of 10 households get more money back from the Canada Carbon Rebate than they spend on carbon pricing from the fuel charge, with lower-income households benefiting the most. Rural Canadian residents will also receive a top-up of 20 percent once relevant legislation passes through Parliament. This is an increase from the current 10 percent top-up for rural residents, in recognition of their higher energy needs and more limited access to cleaner transportation options.
As of April 15, 2024, a family of four may receive the following quarterly payments in base Canada Carbon Rebate amounts:
- $450 in Alberta
- $300 in Manitoba
- $280 in Ontario
- $376 in Saskatchewan
- $190 in New Brunswick
- $206 in Nova Scotia
- $220 in Prince Edward Island
- $298 in Newfoundland and Labrador
Canada’s price on carbon pollution is working. Canada’s emissions in 2021 would have been about 18 million tonnes higher in the absence of Canada’s carbon pricing plan. A national price on pollution creates the predictability for clean investments that Canada needs to prosper in a changing world.
Climate change is not the only challenge facing Canadians today. It can be tempting to put off action for the future in favour of other short-term goals and needs. However, this is a false choice. Choosing the ‘easy’ path of less action now just means paying more later, by letting climate change get much worse. And because of the Canada Carbon Rebate, the Government of Canada can take real action to slow down climate change and still protect households from increased costs that climate change will mean for insurance, infrastructure repairs, health care, and more.
“Pricing pollution works. It keeps us on track to meet our climate goals, and the Canada Carbon Rebates help low- and middle-income Canadians the most—not those with yachts and four-car garages. Climate-related impacts are costing average Canadian households $720 per year and are likely to rise to $2,000 per year by 2050 without significant additional action to reduce emissions. We need to listen to scientists, youth, our communities, and our businesses. Pollution pricing is the most effective and cost-efficient tool we have to create a better climate future for our kids and grandkids.”
– The Honourable StevenGuilbeault, Minister of Environment and Climate Change
Each year, Canada Carbon Rebate amounts are adjusted in line with the price on carbon, ensuring the rebate continues to reflect the projected proceeds in each province where the rebate applies. The Canada Carbon Rebate returns the majority of proceeds directly to the residents of that province.
The Canada Carbon Rebate amounts also reflect the proposed doubling of the rural supplement from 10 percent to 20 percent of the base rebate amount, which would be delivered following Royal Assent of Bill C-59.
The first of four quarterly Canada Carbon Rebate payments for the new benefit year will be issued starting in April 2024, with subsequent quarterly payments delivered in July, October, and January 2025.
To receive your Canada Carbon Rebate on April 15, 2024, you must have electronically filed your income tax and benefit return on or before March 15, 2024. If your tax return is filed after this date, generally, you can expect to get your Canada Carbon Rebate payment 6–8 weeks after your tax return has been assessed.
The Canadian Climate Institute estimates the expected costs of climate change to mount to $25 billion from Canada’s gross domestic product by 2025.
This year’s Canada Carbon Rebate amounts reflect thetemporary pause of the fuel charge on deliveries of home heating oil that came into effect on November 9, 2023. In Nova Scotia, Prince Edward Island, and Newfoundland and Labrador—where households more often rely on expensive home heating oil—rebate amounts have been adjusted to reflect expected fuel charge proceeds in 2024–2025, compared to 2023–2024. In all other provinces where the federal fuel charge applies (Alberta, Saskatchewan, Manitoba, Ontario, and New Brunswick), Canada Carbon Rebate amounts have increased.
Kaitlin Power
Press Secretary
Office of the Minister of Environment and Climate Change
819-230-1557
Kaitlin.Power@ec.gc.ca
Media Relations
Environment and Climate Change Canada
819-938-3338 or 1-844-836-7799 (toll-free)
media@ec.gc.ca
FAQs
As of April 15, 2024, a family of four may receive the following quarterly payments in base Canada Carbon Rebate amounts: $450 in Alberta. $300 in Manitoba. $280 in Ontario.
How much is the Canada carbon rebate? ›
Based on the finance ministry's estimates, annual payment totals for 2024/25 for a family of four are $1,800 in Alberta, $1,200 in Manitoba, $1,120 in Ontario, $1,504 in Saskatchewan, $760 in New Brunswick, $824 in Nova Scotia, $880 in Prince Edward Island and $1,192 in Newfoundland and Labrador.
What is the $300 federal payment in Canada? ›
In 2024, the Canadian government started the $300 Canada Federal Payment to help people who do not earn a lot of money. This payment is for people who need extra support to live a decent life. To get this money, you must apply on the official website, which is www.canada.ca, and provide your details.
What is the Canada carbon rebate notice? ›
The Canada Carbon Rebate (formerly known as the Climate action incentive payment (CAIP)) is a tax-free amount to help eligible individuals and families offset the cost of the federal pollution pricing. It consists of a basic amount and a supplement for residents of small and rural communities.
What is the climate action incentive payment for BC 2024? ›
Budget 2024 increased the B.C. climate action tax credit amounts and the threshold amounts effective July 1, 2024. For the July 2024, October 2024, January 2025 and April 2025 payments, the maximum annual amounts will increase to: $504 for you.
How much is the Canadian carbon credit? ›
It started at $20 for every tonne of carbon dioxide or equivalent, increasing $10 per tonne each year until a $50 ceiling reached in 2022. As of this year, it began increasing by $15 a year, and will continue at that rate until $170 per tonne in 2030. Every fossil fuel has a different carbon footprint.
What is the carbon price? ›
Carbon pricing works by capturing the external costs of emitting carbon - i.e. the costs that the public pays, such as loss of property due to rising sea levels, the damage to crops caused by changing rainfall patterns, or the health care costs associated with heat waves and droughts - and placing that cost back at its ...
What is the new $1200 benefit in Canada? ›
$1,200/ Month for People on OAS as Cost of Living Fact Check
Retired seniors in Canada are having difficulty managing their cost of living due to the fast rising global inflation rates. By giving them $1,200/ Month Seniors benefits, the Canadian government hopes to help seniors who qualify for it financially.
What is the $1,200 federal payment? ›
What are the income limitations for each filing status? Eligible individuals will receive an Economic Impact Payment of $1,200, or $2,400 if married filing jointly, with an adjusted gross income (AGI) up to: $75,000 for individuals if filing as single or married filing separately.
Why did I receive $600 dollars from Canada? ›
This non-taxable, non-reportable, one-time payment provides up to $600 in recognition of the extraordinary expenses incurred by persons with disabilities during the COVID-19 pandemic.
Each offset credit is equivalent to one tonne of carbon dioxide reduced or removed from the atmosphere. Federal offset credits can be sold and used for compliance by facilities covered in the federal Output-Based Pricing System or sold and used by others who are looking to meet voluntary climate targets or commitments.
Is carbon tax mandatory in Canada? ›
In Canada, the federal government implemented a coordinated nation-wide carbon price, beginning at $20 per tonne of carbon dioxide equivalent emissions (tCO2e) in 2019 and rising to $80 per tonne as of April 1, 2024. All provinces and territories must maintain a carbon price of at least $80 per tCO2e in 2024.
When did carbon tax start in Canada? ›
In June 2007, Quebec implemented the first carbon tax in Canada which was expected to generate $2 million annually. On December 11, 2008, ExxonMobil CEO Rex Tillerson said that a carbon tax is preferable to a cap-and-trade program which "inevitably introduces unnecessary cost and complexity".
What is the Canadian rebate for 2024? ›
The Canada Grocery Rebate Payment amount May 2024 will range from approximately CAD 234 – CAD 628 depending upon individual or the family, and it might be subject to changes as per budget allocation and revised threshold income.
Why do BC residents not get a carbon tax rebate? ›
Most of Canada gets the federal Canada Carbon Rebate, but BC has its own program called the Climate Action Tax Credit. As of July 1, 2024, there will be an increase to the maximum payment.
Is GST increasing in 2024 in Canada? ›
Applying to the majority of products and services sold in Canada, the Goods and Services Tax (GST) is a value-added tax. The two-stage hike planned in the federal budget would raise Canada's GST rate, which is now 5%, to 9% on January 1, 2024.
How much is carbon tax Canada deposit? ›
If you file your taxes electronically by March 15, 2024, you should receive your next CCR payment (formerly known as the Climate action incentive payment) on April 15, 2024. If you file after March 15, 2024, generally, you can expect to get your CCR payment 6-8 weeks after your tax return has been assessed.
How much is the carbon price rebate in BC? ›
Individuals receiving $447 this year will collect $504 a year, starting in July 2024. Approximately 65% of people in B.C. receive money back through the tax credit. The credit will increase annually with the goal of 80% of individuals and families receiving the credit by 2030.
How much does Canada contribute to carbon? ›
Source: World Resources Institute (2023) Climate Watch Country Historical Greenhouse Gas Emissions. In 2020, Canada ranked as the 11th largest GHG emitting country/region. Canada's share of global emissions decreased from 1.8% in 2005 to 1.5% in 2020.
Has carbon pricing worked in Canada? ›
The first independent expert review of carbon pricing across Canada indicates jurisdictions are making progress. But changes will be necessary to ensure federal, provincial and territorial systems are effective in reducing greenhouse gas emissions in the long term.
