Prime Minister Justin Trudeau announced that the government will double the amount of the carbon price reduction rebate for rural Canadians starting next April.
In a press release, the government specifies that it will double the rate of the rebate resulting from pollution pricing from 10 to 20% of the base amount from April 2024.
Mr. Trudeau also said there would be a temporary three-year pause in carbon pricing measures applied to fuel oil deliveries. This suspension would begin in two weeks.
A government press release indicates that this change will mean that households who use oil to heat their homes could save around $250 per year on average, at current rates.
Through a pilot project, low- and median-income households in Atlantic Canada will receive an upfront payment of $250 if they currently heat their home with oil and register to have a heat pump installed under the provincial-federal program.
The amount of federal funding that eligible homeowners can receive for heat pump installation is also increasing. According to the government, this will save households around $2,500 on their energy bills.
“We saw that the price on pollution was not enough for enough people to switch to heat pumps, so today we are announcing a program that will deliver heat pumps free of charge to those with average income or less, and to everyone else will be offered heat pumps from the start, which they will be able to pay for with the savings generated over the years,” Mr. Trudeau announced on the sidelines of a press conference on Parliament Hill.
“We want this change to happen quickly, so we are giving a three-year horizon, during which the price on pollution linked to oil heating will not be applied so that people can benefit and be motivated to take advantage of this program,” he added.
Mr. Trudeau explained that this means that low-income households will be able to obtain a heat pump for free.
The strengthening of the Program for the affordable conversion from fuel oil to heat pump will be implemented in partnership with the provinces and territories with a view to increasing from $10,000 to $15,000 the amount of federal funding that eligible homeowners can receive for the installation of a heat pump.
A government press release notes that this provides up to $5,000 in additional grants to match contributions made by provinces and territories under joint implementation agreements.
“About-face on the carbon tax”
Conservative leader Pierre Poilievre believes that Mr. Trudeau made this announcement because of recent polls which place the Conservatives in first place in voting intentions.
“After plummeting in the polls, a hesitant and desperate Justin Trudeau is now doing an about-face on his carbon tax as I host a massive rally on the tax in a Liberal-held Atlantic riding. He admits he’s not worth the cost,” Mr. Poilievre wrote on X (formerly Twitter).
The temporary suspension of the application of the fuel charge to deliveries of light fuel oil will be in effect for the next three years in provinces and territories where the fuel charge applies. These are Alberta, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Nunavut, Ontario, Prince Edward Island, Saskatchewan and the Yukon.