Canadians across the country are facing the effects of climate change, including more frequent severe weather, droughts, damage to critical infrastructure, and rising food costs due to impacts on crops. According to the Canadian Climate Institute, the expected costs of climate change may mount to $25 billion from Canada’s gross domestic product by 2025.

As such, the Government of Canada is taking action on climate change while addressing affordability concerns. The vast majority of Canadians receive more cash back through the rebate than they pay into the system—because the carbon pricing system is designed so that big polluters pay the most.

In the eight provinces where the federal fuel charge applies, the Canada Carbon Rebate ensures that eight out of 10 families receive more money back than they pay in pollution pricing.

“The Canada Carbon Rebate underscores our commitment to combat climate change while providing tangible support to Canadian households,” said Steven Guilbeault, Minister of Environment and Climate Change. “The upcoming quarterly payments will help with cost-of-living challenges, especially for modest income Canadians, while providing a financial incentive for everyone to find ways to be more environmentally friendly. Through initiatives like the Canada Carbon Rebate, we are building a path to a cleaner, more affordable, and sustainable future for all Canadians.”

Rebate amounts depending on jurisdictions

Eligible Canadians will receive their first of four quarterly Canada Carbon Rebates for 2024–2025, starting on April 15, 2024 via direct bank deposit or cheque. The rebates build upon the government’s robust support for measures such as $10-a-day childcare, the Canada Child Benefit, the Grocery Rebate, and the Canada Dental Benefit.

This year, a family of four can expect to receive the following Canada Carbon Rebate amounts:

  • $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
  • $1,192 in Newfoundland and Labrador

In recognition of rural Canadians’ higher energy needs and their more limited access to cleaner transportation options, the federal government has introduced legislation that would double the existing rural supplement from 10 per cent to 20 per cent of the base Canada Carbon Rebate amount. Implementing the increased rural supplement can only happen once Bill C-59, the Fall Economic Statement Implementation Act, 2023, receives Royal Assent.

Estimates show that pollution pricing will contribute about a third of the total reductions in emissions that will occur between now and 2030. Pollution pricing is one part of a comprehensive plan to lower emissions in Canada by 40 per cent below 2005 levels by 2030 and achieve net-zero emissions by 2050.

“Every three months, the Canada Carbon Rebate returns hundreds of dollars back to Canadians. Because carbon pricing makes big polluters pay the most, eight out of 10 Canadians get more back than they pay, with lower-income families benefitting the most,” said Chrystia Freeland, Deputy Prime Minister and Minister of Finance. “This real support makes life more affordable for Canadians and ensures we will pass on a cleaner, net-zero future to the next generation.”

Each year, Canada Carbon Rebate amounts are adjusted in line with the price on carbon, ensuring the rebate continues to reflect the expected revenue in each province and returns the majority of proceeds directly to Canadians.

To receive your Canada Carbon Rebate on April 15, 2024, you and your spouse or common-law partner (if applicable), must have electronically filed your income tax and benefit return on or before March 15, 2024. If your tax returns are filed after this date, your payment will be included in a subsequent payment after your return is assessed.

Increased tax and intense debate

The carbon tax is slated to increase on April 1, 2024. Canada has two different carbon pricing programs: one for large industry where companies pay the price on a share of their actual emissions, and the other is a consumer carbon levy which is applied to fossil fuel purchases (impacting individuals, small and medium-sized businesses, First Nations, as well as public-sector organizations and municipalities). The price change on April 1 affects the consumer levy, which applies in every province and territory except British Columbia, Quebec and Northwest Territories. (B.C. and N.W.T. both have their own similar carbon charge for consumers, Quebec has a cap-and-trade system that is different but considered equivalent to the federal system).

The carbon tax has been a topic of intense debate among Canadians. However, several economic and environmental experts are adamant about the necessity and efficacy of carbon pricing.

In a recent article from The Conversation Canada, Steve Lorteau of the University of Toronto points out that Canadians pay a lot more in taxes every year by way of subsidies to fossil fuel companies than they pay in carbon taxes.

“These subsidies cost Canadian taxpayers at least $6.03 billion, or roughly $214 per taxpayer, every year. And unlike the federal carbon tax, Canadians don’t get a rebate on this tax,” writes Lorteau. “While oil and gas companies boast about record profits, Canadian taxpayers are footing the bill.”

For further information, visit: Canada Carbon Rebate Amounts for 2024–2025

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