Pollution pricing in the Atlantic provinces

Pollution pricing in the Atlantic provinces

Putting a price on carbon pollution is the most efficient means to fight climate change while keeping life affordable for Canadians.

The federal carbon pollution pricing system is about recognizing that carbon pollution has a cost, empowering Canadians, and encouraging cleaner growth and a more sustainable future. Through the federal system and programs, the Government of Canada is helping households get the support they need to cut energy costs, switch from expensive home heating oil to cheaper and more efficient electric heat pumps, better insulate their homes, and buy zero-emission vehicles, while helping industries and municipalities become more energy efficient.

Climate Action Incentive (CAI) payments

For those provinces where the federal fuel charge applies, 90 percent of direct proceeds are delivered to individuals and families through pollution price rebates, which are made to eligible individuals every three months. The remaining 10 percent of proceeds are provided to emissions-intensive, trade-exposed, small- and medium-sized enterprises, and Indigenous groups.

In the Atlantic provinces—as with other jurisdictions where Canadians receive pollution pricing rebates—most households will receive more than they pay through the federal carbon pollution pricing system, with low- and middle-income households benefitting the most. Overall, the majority of households in provinces where the federal fuel charge applies get more money back through quarterly pollution pricing rebate payments than they pay.

Delivering carbon pricing proceeds back to Canadians ensures a fair and effective approach to tackling climate change. By finding accessible ways to reduce their emissions, Canadians can help fight climate change while getting further ahead with their payments.

In the Atlantic provinces, CAI payments for 2023-2024 are being disbursed as follows:

• Since the federal fuel charge came into effect as of July 1, 2023, in Newfoundland and Labrador, Nova Scotia, and Prince Edward Island, residents of these provinces will receive three equal quarterly payments (July 2023, October 2023, and January 2024) in the 2023-2024 fiscal year and four payments the year after that.
• Because New Brunswick requested the federal economy-wide carbon price more recently, households in the province will receive their first pollution price rebate payment as a double payment this October, with a second quarterly payment in January 2024. Households in the province will continue to receive four quarterly payments in the 2024–2025 fiscal year.

In jurisdictions where the federal fuel charge is being applied, a 10 percent supplement is provided to eligible individuals and families residing in small and rural communities, in recognition of their increased energy needs and reduced access to cleaner transportation options.

The rural supplement will apply as follows in the Atlantic provinces:

• In Prince Edward Island, all residents will be eligible.
• In Newfoundland and Labrador, residents living outside of the Census Metropolitan Area of St. John’s will be eligible.
• In Nova Scotia, residents living outside of the Census Metropolitan Area of Halifax will be eligible.
• In New Brunswick, residents living outside of the Census Metropolitan Areas of Fredericton, Moncton, and Saint John will be eligible.

Notes

¹ The amount for Prince Edward Island includes the 10 percent rural supplement, as all residents are eligible. Rural residents in other provinces will also receive the 10 percent rural supplement, which is not reflected in this table.

² Households in New Brunswick will receive their first Climate Action Incentive payment as a double payment in October 2023, with a regular quarterly payment in January 2024 ($368 and $184 respectively, for a family of four).

Supporting Atlantic Canada with home heating

The Government of Canada is taking significant action to support Canadians in Atlantic Canada and across the country with the increased costs of home heating this winter. Together, with investments to help make home heating more affordable for families across the country, the federal system is empowering households to move away from carbon-intensive options.

To help families with the cost of heating their homes, the Government of Canada has committed $250 million to the Low Carbon Economy Fund to help Canadians get off expensive home heating oil. Approximately $120 million of the overall funding will go to people in Atlantic provinces, where using oil for home heating is much more common.

Operating under the banner of the Canada Greener Homes Initiative, the Oil to Heat Pump Affordability Program is a new incentive launched in 2023 to help Canadian homeowners transition away from oil heating to more energy-efficient methods. On average, homeowners who switch from oil to cold-climate air source heat pumps to heat their homes would save between $1,500 and $4,700 per year on home energy bills.

Homeowners are able to combine this funding with other programs, such as the Canada Greener Homes Grant, to support them with grants up to $5,000 and interest-free loans for cost-saving and energy-efficient retrofits such as windows, doors, heating systems, solar installations, and more.

Climate Action Incentive payments across provinces

Canadians living in Alberta, Manitoba, Ontario, and Saskatchewan—provinces where the federal pollution pricing system applies—also receive CAI payments for the 2023–2024 fiscal year.

Related links

• How Carbon Pricing Works
• Pollution Pricing in Canada
• Climate Action Incentive Payment Amounts for 2023–24
• Climate Action Incentive Payment Amounts in 2023–24 for New Brunswick
• Making Home Heating More Affordable for Atlantic Canada and Other Regions