Canada Ups Pollution Pricing

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The Canadian government says levying a price on air pollution continues to be the most practical way to battle climate change and simultaneously make life more economical for Canadians. Not only does this policy guarantee that it no longer costs nothing to pollute federally in Canada, but under new rules, for 8 out of 10 Canadian families who receive Climate Action Incentive (CAI) payments, they will actually see extra money deposited into their accounts.

Polluters will have to pay more over time, as the Government of Canada announced today. This is in addition to the Climate Action Incentive amounts for next year that were also announced today for provinces following the federal approach. The logic behind this decision is that it returns proceeds of pollution pricing directly back into Canadian households.

“What is important about the price on pollution in Canada is that all the revenue is returned to Canadians.” said The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance. “Eight out of 10 Canadian households who receive Climate Action Incentive payments get more money back in their bank accounts than the price on pollution costs them. And these regular payments particularly benefit lower-income households.”

Canada’s government PR people claim that comprehensive plan to price pollution is already yielding results. Next year, households that are already receiving the Climate Action Incentive (CAI) will see their rebate payments increase, while families in Newfoundland and Labrador, Nova Scotia, and Prince Edward Island will begin receiving CAI benefits for the first time. Polluting industries are being encouraged to become more efficient and adopt cleaner technologies, which is spurring new approaches to reducing GHG emissions and using energy more efficiently.

Specifics On The New Rules

  • The federal fuel charge will apply to residents of Alberta, Saskatchewan, Manitoba, Nunavut, Ontario, and Yukon as it has already.
  • The federal fuel charge will expand to Newfoundland and Labrador, Nova Scotia, and Prince Edward Island on July 1st, 2023. At this time, Canadians living in these provinces will receive their first quarterly Climate Action Incentive payment.
  • British Columbia, New Brunswick, Northwest Territories, and Quebec will continue to implement their own pollution priciA

According to government estimates, in 2023, a family of four receiving CAI payments will receive the following quarterly: $386 in Alberta; $264 in Manitoba; $244 in Ontario; and $340 in Saskatchewan. New recipients of CAI payments, will receive the following quarterly rebates for a family of four: $328 in Newfoundland and Labrador; $248 in Nova Scotia; and $240 in Prince Edward Island.

Individuals who get federal CAI payments and live in small or rural communities also receive a 10% supplement on their payments. This is to reflect the fact that these areas have limited access to clean transportation options. The amount for Prince Edward Island includes the 10 % rural supplement because all of its residents are eligible.

“Pollution pricing works — it fights climate change, it puts money back in the pockets of Canadians, and it helps grow a strong, sustainable economy. Today, I announced how we’re strengthening this system. I am particularly gratified to have so many provinces raise the bar on their industrial sector to meet Canada’s strengthened pollution pricing approach. We’re all sending a strong message that industry can have confidence and predictability to invest heavily in a low-carbon future.” said The Honourable Steven Guilbeault, Minister of Environment and Climate Change. “And starting this spring, more Canadians will see more money in their pockets thanks to the Climate Action Incentive rebate cheques that return the proceeds of pollution pricing directly to families. We’re fighting climate change, making sure it is not free to pollute anywhere in this country, and supporting families.”

Featured image: a screenshot from the old SCTV skit “The Great White North.” Fair Use, For Fun.

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Jennifer Sensiba

Jennifer Sensiba is a long time efficient vehicle enthusiast, writer, and photographer. She grew up around a transmission shop, and has been experimenting with vehicle efficiency since she was 16 and drove a Pontiac Fiero. She likes to get off the beaten path in her "Bolt EAV" and any other EVs she can get behind the wheel or handlebars of with her wife and kids. You can find her on Twitter here, Facebook here, and YouTube here.

Jennifer Sensiba has 2020 posts and counting. See all posts by Jennifer Sensiba