Putting a price on pollution remains the most efficient means to fight climate change, while making life more affordable for Canadians. Not only does pollution pricing ensure it is no longer free to pollute anywhere in Canada, but in provinces where the federal pollution pricing system applies, Climate Action Incentive payments put more money back into the majority of Canadians' pockets.
Following the Government of New Brunswick's February request that the federal pollution pricing fuel charge apply with all proceeds returned to residents, small businesses, and Indigenous groups in their province of origin. Today, the Honourable Steven Guilbeault, Minister of Environment and Climate Change, provided an update that the fuel charge would be effective July 1, 2023, at the same time that it will begin to apply in other Atlantic provinces. Through Climate Action Incentive payments, 90 percent of direct proceeds will be returned to individuals and families.
This October, a family of four in New Brunswick will receive their first Climate Action Incentive payment, as a double payment of $368, with a second quarterly payment amount of $184 in January 2024. Indigenous groups and small businesses receive added support through federal programs, and residents of small and rural communities are entitled to a 10 percent supplement beyond the base amount.
For households in New Brunswick, as with those across the country that receive Climate Action Incentive payments, the majority of households in New Brunswick will receive more money back than they pay, as a result of the federal pollution pricing system, with low- and middle-income families benefitting the most.
Since 2019, every jurisdiction in Canada has had a price on carbon pollution. Canada's approach gives provinces and territories the flexibility to implement the system that works best for them: either their own pollution pricing system, or the federal pollution pricing system. Canada's approach to pricing pollution is working. It is spurring new and innovative approaches to reduce emissions, use energy more sustainably, and save money.
Canadians are feeling the pressure of higher costs of living. The federal pollution pricing system ensures that Canadians receive much-needed relief on a regular basis, while fighting climate change at the same time.
