Government of Canada to help schools, hospitals, and businesses take climate action

News release

May 21, 2021 - Ottawa, Ontario - Department of Finance Canada

Ensuring a minimum price on pollution everywhere in Canada is an important component of Canada’s plan to fight climate change and build a net-zero economy. For provinces that do not have their own system that meets the federal benchmark, a federal backstop system applies. The federal system returns all direct revenues to the jurisdiction where they were collected, with 90 per cent returned directly to Canadians through their Climate Action Incentive. The other 10 per cent helps organizations and communities take climate action, with various ministers responsible for the disbursement of funds, including the Minister of Natural Resources.

To address delays in disbursement caused by COVID-19, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, has authorized a one-year extension for the Minister of Natural Resources to disburse 2019-20 federal price on pollution proceeds in Saskatchewan, Manitoba, Ontario, and New Brunswick. The Minister of Natural Resources now has until the end of the 2021-22 fiscal year to invest in eligible energy efficiency projects at schools, hospitals, small- and medium-sized businesses, colleges, universities, municipalities, not-for-profit organizations, or in Indigenous communities in those provinces.

By investing in energy efficiency projects, these organizations will not only reduce their pollution—they will reduce their energy bills, too. This will help create good local jobs and help build a cleaner, healthier environment.

Quick facts

  • These changes are made pursuant to the Budget Implementation Act, 2019, No. 1.  

  • In July 2019, the Minister of Finance specified the Ministers of Environment and Climate Change, Natural Resources, Crown-Indigenous Relations, and Indigenous Services as the ministers responsible for disbursing the 2019-20 federal price on pollution proceeds not used for Climate Action Incentive payments to Ontario, Saskatchewan, Manitoba, and New Brunswick through federal programming.

  • Since 2015, the federal government has invested roughly $90 billion towards climate action and clean growth, including for Canada’s strengthened climate plan and public transit. Most recently, the federal government has committed an additional $17.6 billion towards a green recovery that will build a clean economy, fight and protect against climate change, and create good middle class jobs.

Related products

Associated links


Media may contact:

Katherine Cuplinskas
Press Secretary
Office of the Deputy Prime Minister and Minister of Finance

Media Relations
Department of Finance Canada

General enquiries

Phone: 1-833-712-2292
Facsimile: 613-369-4065
TTY: 613-369-3230

Stay connected

Twitter: @financecanada


Report a problem or mistake on this page
Please select all that apply:

Thank you for your help!

You will not receive a reply. For enquiries, contact us.

Date modified: