Carbon Pollution Pricing Proceeds Programming

In October 2016, the Government of Canada announced the Pan-Canadian Approach to Pricing Carbon Pollution, the federal benchmark for the reduction of greenhouse gas (GHG) emissions. To meet this commitment, and as part of Canada’s clean growth and climate action plan (the Pan-Canadian Framework on Clean Growth and Climate change), the Government of Canada has introduced programs to return revenues to the jurisdictions of origin and to support Canada’s climate action plan.

Each province and territory has its own unique way of pricing carbon pollution. For provinces that have not committed to pricing carbon pollution - Saskatchewan, Manitoba, Ontario and New Brunswick - the federal government will return the majority of direct proceeds from the federal regulatory charge on fuel directly to individuals in the province of origin. The remainder of the revenues will be distributed through programming, primarily through the proposed Climate Action Incentive Fund (CAIF).

The central objective of carbon pollution pricing proceeds programming is to support eligible recipients to engage in activities that will lead to reductions in energy usage, thereby helping these entities save money and reduce carbon pollution, drive climate action, support innovation, further the adoption of clean technology, and transition to a low-carbon economy.

Climate Action Incentive payment

If you are a resident of Saskatchewan, Manitoba, Ontario or New Brunswick, you can claim it when you file your income tax and benefit return.

Climate Action Incentive Fund

Fuel charge proceeds would be used to fund programming that provides support to small and medium-sized enterprises, municipalities, universities, schools, and hospitals, and not-for-profit organizations in Saskatchewan, Manitoba, Ontario and New Brunswick.

Additional incentives

Find additional incentives related to energy efficiency from provincial and territorial governments, major Canadian municipalities and major electric and gas utilities.

Other climate change funding programs

Funding for projects to support Canada’s climate plan.

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