Times Colonist

Quarterly federal carbon-price rebates appear in bank accounts

- MIA RABSON and ERIKA IBRAHIM

Canadians who pay the federal carbon price got a midsummer money drop on Friday with the first half of their annual “climate action incentive” payment deposited into their bank accounts.

Prime Minister Justin Trudeau promoted the payments in whistle stops around Ottawa area, calling them a way to “bring Canadians along” 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 Friday, to cover half the amount they can expect to receive for the 2022-23 fiscal year.

The rest will come in quarterly payments in mid-September and mid-January.

All other provinces have their own carbon pricing systems and are not involved in the federal version.

It is the first time the carbonpric­e cash is being sent quarterly instead of in a single lump sum hidden in tax rebates as the federal government seeks to make the payments more visible.

The success of that effort may be limited, however, since many Canadians saw the deposit unclearly labelled in their online accounts including as “federal payment,” “Canada Fed” and “EFT Credit Canada.”

Some on social media queried what the payments were for as others shared the various ways they were labelled depending on which financial institutio­n you bank with.

The rebates are designed to prevent families from being worse off overall due to the carbon price while still having an incentive to cut their carbon price costs by driving less, installing better furnaces or solar panels, or upgrading windows, doors and insulation.

The amounts vary by province based on the estimated carbon levy consumers will pay this year, with the annual payments for a family of four hitting $745 in Ontario, $832 in Manitoba, $1,079 in Alberta and $1,101 in Saskatchew­an.

The payments in Saskatchew­an and Alberta are higher mainly because they rely mostly on natural gas and coal for electricit­y while Ontario draws most of its power from nuclear and hydro, and Manitoba almost entirely from hydro. The carbon levy applies to fossil fuels but not energy sources that are low or non-emitting.

Environmen­t Minister Steven Guilbeault says the rebates cover more than the added cost of the levy for about eight in 10 Canadian families.

The carbon price is now $50 per tonne of emissions produced, which adds 11 cents to a litre of gasoline, 13 cents to a litre of diesel and 10 cents to a cubic metre of natural gas.

The federal government expects to return more than $7 billion to Canadians from the carbon levy this year.

The levy will increase by $15 a tonne each year through to 2030, adding another 3.3 cents to a litre of gas annually.

 ?? JUSTIN TANG, THE CANADIAN PRESS ?? Prime Minister Justin Trudeau and Liberal MP Jenna Sudds speak with Reza Matin, left, and Shirin Mohseni, second from left, about the Climate Action Incentive Payment at their backyard in Ottawa on Friday.
JUSTIN TANG, THE CANADIAN PRESS Prime Minister Justin Trudeau and Liberal MP Jenna Sudds speak with Reza Matin, left, and Shirin Mohseni, second from left, about the Climate Action Incentive Payment at their backyard in Ottawa on Friday.

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