Government Announces Climate Action Incentive Payments for 2021
December 16, 2020 - Ottawa, Ontario - Department of Finance Canada
Today, the Deputy Prime Minister and Minister of Finance, the Honourable Chrystia Freeland, announced the 2021 Climate Action Incentive payment amounts for people who live in provinces that do not have a pollution pricing system of their own (Ontario, Manitoba, Saskatchewan and Alberta). This is part of the federal government backstop, which ensures there is a consistent price on pollution across Canada and that approximately 90 per cent of proceeds go directly to Canadians.
People will receive their Climate Action Incentive when they file their 2020 personal income tax returns. A family of four will receive $600 in Ontario, $720 in Manitoba, $1,000 in Saskatchewan and $981 in Alberta. Families in rural and small communities receive an extra 10 per cent. Full details on payment amounts for individuals and families in 2021 are specified in the backgrounder related to this news release.
The majority of families receive more money back than they pay under the system, with families that earn less benefitting the most, on average. Pollution is never free, and putting a price on pollution ensures Canadians and Canadian businesses have incentives to reduce their pollution and find cleaner ways of doing business.
The Government of Canada also proposes to shift Climate Action Incentive payments to quarterly amounts paid through the Canada Revenue Agency’s benefit system, as early as 2022.
“Pollution has a cost. By putting a fair price on pollution across the country, we’re making sure Canadians and Canadians businesses have good incentives to innovate and create clean solutions. And for provinces without their own pricing system, we’re returning the proceeds with approximately 90 per cent going directly to Canadians and, in fact, leaving most better off. Our government knows that a price on pollution is the cleanest, clearest, and most efficient way to combat climate change.”
The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance
"A price on pollution is one of the most effective and affordable ways to cut pollution and make our communities cleaner and healthier. By continuing to return proceeds to Canadians through the Climate Action Incentive, the majority of families will continue to be better off, with low-income families benefitting the most. In combination with the 63 other measures in Canada’s strengthened climate plan, our government is on track to exceeding our 2030 Paris Agreement target – the first time in Canadian history that a federal government is set to not just meet, but exceed, a climate target."
The Honourable Jonathan Wilkinson, Minister of Environment and Climate Change
To protect Canadians from the dangers and costs presented by climate change, and to ensure that Canada continues to reduce its greenhouse gas emissions, the Government introduced a price on carbon pollution across Canada in 2019.
All direct proceeds from pricing carbon pollution under the federal system are being returned to the jurisdiction in which they were collected.
The Government of Canada does not keep any direct proceeds from carbon pollution pricing.
Media may contact:
Office of the Deputy Prime Minister and Minister of Finance
Department of Finance Canada
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