Canadian Families to Receive Rebates From Climate Action Incentive Payment - Government

OTTAWA (Sputnik) – The Canadian government will disburse the first payment from the Climate Action Incentive Payment (CAIP) to families of four provinces on July 15, Environment and Climate Change Canada announced on Tuesday.

In 2019, in a bid to shield Canadians from the financial and environmental consequences of climate change, the government imposed a refundable mandatory tax on carbon emissions, then known as Climate Action Incentive (CAI), on four provinces and two territories, which did not have their own systems that meet the federal benchmark.

With the goal of encouraging green innovation, industries were imposed with taxes based on their greenhouse emissions. Regulatory charges on gasoline and natural gas were also introduced.

"Starting on July 15th, Canadians living in Ontario, Manitoba, Saskatchewan, and Alberta—provinces where the federal pollution pricing system applies—will receive the first quarterly CAI payment," the news release read.

Each province will receive its own rebates. Families located In Ontario, Manitoba, Saskatchewan, and Alberta will respectively receive: C$745, C$832, C$1,101 and C$1,079. Rural families are entitled to an extra 10%.

The federal government does not own any of the benefits. Provinces are entitled to the entirety of the proceeds and are tasked to redistribute them to the population.

The CAIP is part of the 2030 Emissions Reduction Plan which aims to drastically reduce greenhouse emissions around the country, in alignment with Canada’s targets of 40% below 2005 levels and net-zero by 2050.