Every day, we see the increasing impacts of climate change, and they're costing Canadians more and more. Climate-related impacts are already costing average Canadian households $720 per year and are likely to rise to $2,000 per year by 2050 without significant action to reduce emissions.
A price on pollution is widely recognized as the most efficient means to reduce the greenhouse gas emissions that are contributing to the more intense wildfires, droughts, and floods caused by climate change. Canada's approach to pollution pricing is also designed to put money back into people's pockets.
In provinces where the federal fuel charge system applies, the Government of Canada returns the majority of proceeds from the federal pollution pricing system to families through the quarterly Canada Carbon Rebate for individuals. The remaining portion of proceeds will be returned through federal programming to groups that may be disproportionately impacted by climate change. This includes returning proceeds to farmers, to Indigenous governments through jointly developed mechanisms, and to small- and medium-sized businesses.
The federal carbon pollution pricing system is not about raising money for the Government. All direct proceeds collected are returned to the province or territory in which they were collected. Furthermore, the system was designed to return the money in advance before Canadians incur extra costs at the pump or on their home heating bills.
Quarterly Canada Carbon Rebate for individuals
Households in Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador receive four payments under the Canada Carbon Rebate each year by direct deposit or cheque. This helps keep life affordable for individuals and families while fighting climate change. Through these quarterly payments, eight out of 10 households receive more money back than they pay.
As Canadians continue to take action to reduce emissions-by improving their home insulation, using transit, purchasing an electric vehicle, or installing a heat pump-they will cut costs and save money.
Independent analysis by Clean Energy Canada has shown that a Canadian family that adopts clean-energy solutions, including electric vehicles and heat pumps, could reduce their monthly energy bills by $800, compared to a household that is largely reliant on fossil fuels.
Canada's approach to carbon pricing does not increase the cost of living. In fact, the federal government is focused on addressing the cost-of-living crisis and is delivering the Canada Carbon Rebate to make life affordable for Canadians and to support families. The Canada Carbon Rebate, distributed via direct bank deposit or cheque, outweighs the costs from pollution pricing for the vast majority of families in provinces where the federal fuel charge applies.
Rural supplement
In addition to the base Canada Carbon Rebate amount, a rural supplement is provided to residents of small and rural communities. To further recognize rural Canadians' higher energy needs and more limited access to cleaner transportation options, the Government has doubled the rural supplement available for households in rural areas and smaller communities from 10% to 20% of their base Canada Carbon Rebate amount.
On January 15, 2025, a family of four will receive the following in Canada Carbon Rebate payments:
| - | AB | MB | ON | SK | NB | NS | PEI* | NL |
|---|---|---|---|---|---|---|---|---|
| Family of four | $450 | $300 | $280 | $376 | $190 | $206 | $220 | $298 |
| Family of four | $540 | $360 | $336 | $451.20 | $228 | $247.20 | $220 | $357.60 |
* As all residents of Prince Edward Island are eligible for the 20% rural top-up, it is reflected in the base amount for Prince Edward Island.
Canada Carbon Rebate for Small Businesses
Canada's small- and medium-sized businesses are the backbone of the Canadian economy and the heart of our communities. Across the country, they keep main streets flourishing, create good jobs, and deliver on the dream of entrepreneurship. Through the new Canada Carbon Rebate for Small Businesses, the Government of Canada is delivering on its commitment to return proceeds from the price on pollution directly to small- and medium-sized businesses in the provinces where the federal fuel charge applies.
