(OTTAWA) Canadians paying the federal carbon price received the first half of their annual “climate action incentive” payment on Friday, which was deposited into their bank account.
Posted at 10:39 p.m.
Prime Minister Justin Trudeau promoted the payments on Friday, at various stops in the Ottawa area, calling them ways to “rally Canadians” in the fight against climate change without causing them financial hardship.
People who filed their 2021 tax returns in Ontario, Alberta, Manitoba and Saskatchewan received the deposits on Friday, to cover half of the amount they can expect to receive for the 2022-2023 fiscal year .
The remainder will be deposited in quarterly payments in mid-September and mid-January.
It’s the first time carbon pricing money has been sent quarterly instead of a single lump sum hidden in tax refunds, as the federal government seeks to make the payments more visible.
The success of this effort may be limited, however, with deposits being misidentified in the online accounts of many Canadians. They may be identified as “Federal Payment”, “Canada Fed” or “EFT Credit Canada”.
On social media, some asked what the payments were for and others shared the different ways they were named based on their financial institution.
This confusion was even evident when Mr. Trudeau visited a family during a planned photo opportunity in an Ottawa suburb on Friday afternoon.
Reza Matin, a father-of-two and software testing developer, welcomed Justin Trudeau into his home and, when asked by the Prime Minister if they had received their payment, Matin said he had received notice of a deposit of $372.50, but he did not know who made the payment. Mr. Trudeau informed him that it was from the federal government.
The amounts vary by province based on the estimated carbon tax consumers will pay this year. Annual payments for a family of four can reach $745 in Ontario, $832 in Manitoba, $1079 in Alberta and $1101 in Saskatchewan.
Payments in Saskatchewan and Alberta are higher primarily because they rely primarily on natural gas and coal for electricity, while Ontario derives most of its electricity from nuclear and hydroelectricity, and the Manitoba almost entirely from hydroelectricity.
The carbon tax applies to fossil fuels, but not to low-emitting or non-emitting energy sources.
Refunds more than cover the extra cost of the tax for about eight out of ten Canadian families, says Environment Minister Steven Guilbeault.
The price of carbon is now $50 per tonne of emissions produced, which adds $0.11 per liter of gasoline, $0.13 per liter of diesel and $0.10 per cubic meter of natural gas.
The federal government expects to return more than $7 billion to Canadians through the carbon tax this year.
The levy will increase by $15 per ton each year until 2030, adding an additional 3.3 cents per liter of gasoline per year.
The rebates are designed to prevent families from being penalized by the carbon price while incentivizing them to reduce their carbon price costs by driving less, installing better stoves or solar panels or upgrading windows, doors and insulation.
As of 2019, each jurisdiction in Canada sets a price for carbon pollution. Provinces and territories can design their own pricing system or opt for the federal system. The federal government sets minimum national standards that must be met by all systems to ensure they are effective in reducing greenhouse gas emissions.
Quebec, Nova Scotia, Newfoundland and Labrador, Northwest Territories, British Columbia and New Brunswick each have their own pricing system that meets federal program requirements.