Home Canada Federal carbon pricing to take effect in Nova Scotia, P.E.I and Newfoundland and Labrador

Federal carbon pricing to take effect in Nova Scotia, P.E.I and Newfoundland and Labrador

by News Desk
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The federal government will impose a fuel fee (commonly called a carbon tax) on consumers in Nova Scotia, Prince Edward Island, Newfoundland and Labrador next July.

The CBC has learned that Environment and Climate Change Minister Stephen Guilbeau announced on Tuesday that Ottawa is imposing a federal carbon backstop on those states.

These three provinces will join Alberta, Saskatchewan, Manitoba and Ontario under the federal backstop. New Brunswick, Quebec, the Northwest Territories and British Columbia will continue to oversee their own carbon pricing systems.

Federal pricing goes into effect on July 1, and consumer rebates (federal tax-exempt Climate Action Incentive Payments (CAIP)) are expected to arrive within the next few weeks.

Quarterly CAIP payments are typically made in January, April, July, and October. This is part of a plan to return 90% of the money the federal government collects through the carbon tax. A family of four is expected to receive between $240 and $400 each quarter in Atlantic states where federal backstops are currently in place, according to a senior government official who is not authorized to speak publicly. .

Tuesday’s announcement comes a day after the federal government announced Upfront grant of up to $5,000 Help low- to middle-income households switch from kerosene stoves to heat pumps.

Carbon prices are currently $50 per tonne of emissions. It is expected to rise to $65 per tonne in 2023 and reach $170 per tonne in 2030.

As a general rule, carbon pricing takes into account the total cost of increased greenhouse gas emissions: loss of property due to wildfires, heat waves, droughts and floods. By tying these costs to burning fossil fuels, governments hope to make it easier and cheaper over time for businesses and consumers to choose low-carbon options.

Liberal governments call carbon pricing the most efficient way to put a price on pollution and drive clean innovation.

According to the World Bank, 68 national or local carbon pricing The initiative covers about 20% of global emissions.

While the Canadian government plans to impose carbon prices in these three Atlantic provinces, Guilbeau will announce that Saskatchewan’s heavy emitters will no longer be subject to the federal system. Ottawa has embraced Saskatchewan’s output-based pricing system.

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