Latest Climate Action Incentive payments helping make life more affordable and fight climate change

GATINEAU, QC, Oct. 12, 2022 /CNW/ - Pricing pollution is not only one of the best ways to fight climate change, but it is one of the many actions the Government of Canada is taking to provide support to Canadians who are struggling with the rising cost of living.

This October, Canadians living in Ontario, Manitoba, Saskatchewan, and Alberta—provinces where the federal carbon pollution pricing system applies—will receive the second installment of the quarterly Climate Action Incentive (CAI) payment, implemented in July 2022. The CAI payment program keeps affordability and fairness in mind—eight out of ten households get more money back than they pay in, with low- and middle-income households benefitting the most.

On October 14, 2022, an average family of four will receive $186.25 in Ontario, $208 in Manitoba, $275.25 in Saskatchewan, and $269.75 in Alberta. Families in rural and small communities are also eligible to receive an extra 10 percent. Full details on quarterly payment amounts for individuals and families in 2022-2023 are specified on the Climate Action Incentive payment webpage.

Canadians in these four provinces who are registered for direct deposits from the Canada Revenue Agency will see these payments in their bank accounts as "Climate Action Incentive" (wording may vary based on financial institution). For those not registered for direct deposit, cheques will be mailed and arrive soon.

The quarterly CAI payment comes alongside new proposed affordability measures that would provide much-needed relief to Canadians who are struggling with the rising cost of living. This suite of concrete actions to address inflation and make life more affordable for millions of Canadians would include:

• Doubling the GST tax credit for six months. This would mean an extra $234 in the pockets of single Canadians without children, up to $467 for couples with two children, and an average of an extra $225 for seniors this year;
• Providing up to $1,300 over two years through a Canada Dental Benefit to children under 12, starting this year; and
• Delivering a $500 payment to nearly two million low-income renters who are struggling with the cost of housing, including seniors.

Canadians are feeling the pressure of higher costs of living. The CAI payment will ensure that Canadians receive much-needed relief on a more regular basis, while fighting climate change.

"Putting a price on pollution is the most effective way of reducing our emissions, and our federal system returns the proceeds to Canadians. We made Climate Action Incentive payments quarterly to help put more money back in peoples' pockets on a more regular basis, and this Friday, that is exactly what families in Ontario, Manitoba, Saskatchewan, and Alberta will receive." 
– The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance 

"Canadians are feeling the cost of climate change. Thanks to the quarterly Climate Action Incentive payment, households in provinces covered under the federal pollution pricing system will receive money in the bank every three months. This is one way that the Government of Canada is working to ensure life stays affordable for Canadians, while also reducing carbon pollution and fighting for our planet." 
– The Honourable Steven Guilbeault, Minister of Environment and Climate Change

"I am proud that the measures our government has put into place are making life more affordable for Canadians while fighting the climate crisis at the same time. This includes the quarterly Climate Action Incentive payment which helps to create a clean environment and a healthy future while providing some extra money when Canadians need it most. Claiming it is simple; all you need to do is to file an income tax and benefit return with the Canada Revenue Agency every year." 
– The Honourable Diane Lebouthillier, Minister of National Revenue

• Pricing carbon pollution is the most efficient policy to reduce greenhouse gas emissions and drive clean innovation. It creates a financial incentive for businesses and households to decide for themselves how best to reduce their emissions.
• In the provinces where the federal pollution price applies—Ontario, Manitoba, Saskatchewan, and Alberta—all proceeds are returned to Canadian households, businesses and other organizations through federal programming. Approximately 90 percent of pollution pricing proceeds are returned directly to households through the CAI payment.
• Over the course of the 2022-2023 fiscal year, a family of four will receive $745 in Ontario, $832 in Manitoba, $1,101 in Saskatchewan, and $1,079 in Alberta.
• Low- and middle-income households in these provinces benefit the most from pollution pricing, as they tend to spend less on energy-intensive goods that are subject to the price on pollution, while still collecting the full CAI payment.
• The Government of Canada does not keep any direct proceeds from carbon pollution pricing. All direct proceeds are returned to the province or territory of origin.
• In the provinces where the federal pollution pricing system applies, eight out of ten families get more back through the CAI payment.
• The CAI payment is designed to increase each year to align with the increasing price of carbon pollution.
• Provinces and territories with their own pollution pricing systems receive all the proceeds back to use as they see fit, including by supporting families to take further action to cut pollution in a practical and affordable way. To learn more about how pollution pricing works in different parts of the country, Canadians are encouraged to consult the web page Carbon pollution pricing systems across Canada to see whether the federal system or a provincial/territorial system applies in their jurisdiction.

Related products

• Backgrounder: Climate Action Incentive payment amounts for 2022-2023
• Backgrounder: Delivering Climate Action Incentive payments quarterly
• News release: Government announces Climate Action Incentive payments for 2022-2023

Associated links

• Canada Revenue Agency: Climate Action Incentive payment
• How carbon pricing works
• Carbon pollution pricing systems across Canada

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SOURCE Environment and Climate Change Canada