Starting tomorrow, families receiving Climate Action Incentive payments to get even more support this year
From: Environment and Climate Change Canada
April 13, 2023
Pricing pollution is not only one of the best ways to fight climate change, it is also one of the many actions the Government of Canada is taking to put more money back in Canadians’ pockets.
As the price on pollution rises, the Government of Canada is returning more money to families, every three months. Starting tomorrow, Canadians living in Ontario, Manitoba, Saskatchewan, and Alberta—provinces where the federal pollution price on fuels currently applies—will see even more money in their bank accounts through quarterly Climate Action Incentive payments.
A family of four can expect the following amounts from their spring Climate Action Incentive payments*:
- $244 in Ontario
- $264 in Manitoba
- $340 in Saskatchewan
- $386 in Alberta
With payments every three months, a family of four will be eligible to receive a yearly 2023–2024 total of:
- $976 in Ontario
- $1,056 in Manitoba
- $1,360 in Saskatchewan
- $1,544 in Alberta
Households in rural and small communities are also entitled to receive an extra 10 percent.
Affordability and fairness are at the heart of Canada’s approach to pricing pollution—eight out of ten households get more money back than they pay, with low- and middle-income households benefitting the most.
Canadians in these provinces who are registered for direct deposits from the Canada Revenue Agency will see these payments in their bank accounts as “Climate Action Incentive” (wording may vary based on financial institution). For those not registered for direct deposit, cheques will be mailed.
Residents of Nova Scotia, Prince Edward Island, and Newfoundland and Labrador will start receiving Climate Action Incentive payments in July 2023, when the federal fuel charge begins to apply. Full details on quarterly payment amounts for individuals and families in 2023–2024 can be found on the Climate Action Incentive payment webpage.
The higher Climate Action Incentive payment amounts this year come alongside new proposed affordability measures for Canadians. The Government of Canada has increased the federal minimum wage and has permanently eliminated interest on Canada Student Loans. And the new proposed Grocery Rebate would deliver targeted inflation relief for approximately 11 million Canadians and families who need it most, with up to an extra $467 for eligible couples with two children.
“Pollution pricing means more money in your pocket right now, and clean air for years to come. If you live in Ontario, Manitoba, Saskatchewan, or Alberta—places that use the federal system—today, you get your spring Climate Action Incentive payment. This is a payment worth hundreds of dollars for families of four. And you can look forward to payments continuing to come to you every three months. This is one way that we’re working to ensure life stays affordable, while fighting climate change.”
– The Honourable Steven Guilbeault, Minister of Environment and Climate Change
- *Residents who have had their income tax and benefit returns assessed on or before March 24, 2023, will receive their first quarterly payment in April. If your tax returns are assessed after this date, your April payment will be included in a subsequent payment.
- Pricing pollution is the most efficient policy to reduce greenhouse gas emissions and drive clean innovation. It creates a financial incentive for businesses and households to decide for themselves how best to reduce emissions while returning money directly to families to spend as they see fit.
- The Government of Canada does not keep any direct proceeds from pollution pricing. All direct proceeds are returned to the province or territory of origin. Returning proceeds from pollution pricing helps with affordability, but it does not change the incentive to pollute less. Every time a consumer or business makes a purchasing decision, they are faced with a financial incentive to choose greener options, regardless of how the proceeds are rebated or returned.
- In the provinces where the federal pollution price currently applies—Ontario, Manitoba, Saskatchewan, and Alberta—90 percent of pollution pricing proceeds is returned directly to households through Climate Action Incentive payments, and the other 10 percent is used to support small- and medium-sized enterprises and Indigenous groups.
- Eight out of ten families get more money back through Climate Action Incentive payments than they pay in pollution pricing. And the payments increase each year to align with the rising price of pollution.
- Low- and middle-income households in these provinces benefit the most from Climate Action Incentive payments, as they tend to spend less on energy-intensive goods that are subject to the price on pollution, while still receiving the full Climate Action Incentive payment.
- The federal fuel charge will come into effect on July 1, 2023, in Newfoundland and Labrador, Nova Scotia, and Prince Edward Island, and proceeds will be returned to households through quarterly Climate Action Incentive payments. The fuel charge will also apply in New Brunswick at the province’s request, with the exact timing to be announced in the coming months.
- Provinces and territories with their own pollution pricing systems retain all the proceeds to use as they see fit. To learn more about how pollution pricing works in different parts of the country, consult the web page Carbon pollution pricing systems across Canada to see whether the federal system or a provincial/territorial system applies in your jurisdiction.
Office of the Minister of Environment and Climate Change
Environment and Climate Change Canada
819-938-3338 or 1-844-836-7799 (toll-free)