Ottawa, Ontario - Department of Finance Canada
Today, the Deputy Prime Minister and Minister of Finance, the Honourable Chrystia Freeland, announced the 2022-23 Climate Action Incentive (CAI) payment amounts. To ensure that carbon pollution pricing remains affordable for Canadians, the federal government returns all proceeds to the jurisdictions where they were collected, with the majority of proceeds from the federal pollution pricing system returned directly to Canadians through CAI payments.
Under the federal pollution pricing system, the government applies a price on pollution in jurisdictions that do not have a system of their own that meets the federal stringency requirements - specifically Ontario, Manitoba, Saskatchewan, and Alberta. In those jurisdictions, approximately 90 per cent of direct proceeds from carbon pollution pricing are returned to residents of those provinces through CAI payments. The other 10 per cent is used to support farmers, small businesses, Indigenous groups, schools, universities, and municipalities. No funds collected are retained by the federal government.
In 2022-23, the increased CAI payments announced today mean a family of four will receive $745 in Ontario, $832 in Manitoba, $1,101 in Saskatchewan, and $1,079 in Alberta. Families in rural and small communities are eligible to receive an extra 10 per cent. Full details on payment amounts for individuals and families in 2022-23 are specified in the backgrounder.
In Budget 2021, the government proposed to change CAI payments from a refundable credit claimed annually on personal income tax returns to quarterly payments made through the benefit system. Starting this July with a "double-up" payment for the first two quarters of the 2022-23 fuel charge year (April-June and July-September), followed by single quarterly payments in October and January, CAI payments will be delivered on this more regular basis.
