Some Canadians seeing federal carbon rebates

Have you checked your bank account today? If you’re living in Alberta, Saskatchewan, Manitoba, or Ontario, you might have woken up with some extra money in your account because of the federal government’s efforts to reduce carbon pollution in the country.

On Friday, July 15th Canadians living in those four provinces who have filed their 2021 income tax and benefit return should have received their first quarterly Climate Action Incentive payment.

Since 2019 the federal government has placed a fuel charge on top of the cost of gas at pumps and the gas you use to heat your home in provinces that don’t follow the federal pollution pricing model. Ottawa claims this was done to reduce carbon emissions. The money back is to offset the extra taxation.

“We are all encouraged to drive less if we can because we can’t afford it,” said one Edmontonian in response to the news. “I mean myself, I’m looking at hybrid or electric vehicles because I can’t afford the cost of gas anymore.”

But is pollution pricing really effective in reducing emissions by consumers? Another woman in Edmonton said no.

“Our transit system – our city is not built for public transportation either,” she said. “So it’s almost the lesser of two evils, where I’m paying more in gas but at least I can get to work in 15 minutes rather than an hour-and-a-half bus ride.”

Albertans received their first installment of more than $500 for families of four and more than $200 for individuals on Friday. There are further carbon tax rebates to come over the next six months. But Alberta’s payment is higher than Ontario’s but less than Saskatchewan’s – why?

The Government of Canada website explains that “These CAI payment amounts have been adjusted in each jurisdiction to account for over-distributions of proceeds in previous years (primarily 2020-21).”

A statement from the Office of the Minister of Environment and Climate Change Canada says, “Low- and middle-income households in these jurisdictions benefit the most from pollution pricing, as they tend to spend less on energy-intensive goods that are subject to the price on pollution, while still collecting the full Climate Action Incentive payment.”

“I’m a senior, I’m on a pension and retired, but I think it helps out with groceries,” said one older man on his way to the bank to check his account, “Everything is going up in price – usually seniors are forgotten about, really, but this time it’s good.”

The federal government said in a press release the payment is designed to increase each year to match the increasing price on carbon pollution – and more money is always good news.