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Government of Canada to Help Schools, Hospitals and Businesses Fight Climate Change

Press Release

July 12, 2019 – Ottawa, Ontario – Department of Finance Canada

Climate change is a real threat to Canadians’ quality of life and to our growing economy. We need to take serious action to protect our communities, our economy, and our planet in a way that’s affordable for people. To help fight climate change and the carbon pollution that causes it, the Government of Canada took action to make sure there is a price on carbon pollution across the country. The federal carbon pollution pricing system is being applied in provinces and territories that requested it and in jurisdictions that do not have their own system in place that meets the federal benchmark requirements.

To help make life more affordable for people as Canada fights against climate change and transitions to a clean economy, the Government made a commitment to fully return the direct proceeds from the carbon pollution pricing system to the province or territory they came from. In provinces that do not meet the benchmark requirements, the bulk of direct fuel charge proceeds is being returned to eligible individuals and families through Climate Action Incentive payments. Most households will receive more in Climate Action Incentive payments than they will pay in increased costs resulting from carbon pollution pricing.

The Government also committed to returning the remaining direct proceeds to help schools, hospitals, small and medium-sized businesses, colleges and universities, municipalities, not-for-profit organizations and Indigenous communities offset additional costs as a result of carbon pollution pricing and improve their energy efficiency.

In keeping with his authority under the Budget Implementation Act, 2019, No. 1, the Minister of Finance specifies the Ministers of Environment and Climate Change, Natural Resources, Crown-Indigenous Relations, and Indigenous Services as the Ministers responsible for providing programming to these groups based on estimated carbon pollution pricing fuel charge proceeds in 2019-20.

The Minister of Finance also specifies the 2019-20 proceeds that may be disbursed, as set out in the table below, together with the purposes of those amounts and the provinces in which the amounts are to be disbursed through programs delivered by the Ministers. This programming may be delivered in 2019–20 and/or 2020–21.

2019–20 Proceed Amounts That May Be Disbursed in Specified Provinces to Support Certain Sectors That Are Affected by Carbon Pollution Pricing ($ millions)

Ontario Saskatchewan Manitoba New Brunswick Total
Small and Medium Sized Enterprises
Minister of Environment and Climate Change 102.09 30.06 13.09 5.16 150.40
Minister of Natural Resources 1.40 0.41 0.18 0.07 2.07

Total 103.49 30.47 13.27 5.23 152.46
Schools, hospitals, colleges and universities, municipalities, not-for-profit organizations and Indigenous communities
Minister of Environment and Climate Change 46.04 13.53 6.05 2.28 67.90
Minister of Natural Resources 5.17 0.21 0.09 0.04 5.50
Minister of Crown-Indigenous Relations 0.53 0.47 0.19 0.00 1.19
Minister of Indigenous Services 0.00 1.03 0.31 0.30 1.64

Total 51.75 15.23 6.64 2.61 76.23
Some totals may not add up due to rounding.
Note: As a result of Alberta’s recent repeal of its carbon levy, the Government announced its intent to apply the federal pollution pricing fuel charge in that province, effective January 1, 2020. Proceed amounts that may be disbursed to support sectors affected by carbon pollution pricing in Alberta will be confirmed at a later date.

Quick Facts

  • The federal carbon pollution pricing system applies in Ontario, Saskatchewan, Manitoba and New Brunswick because those provinces do not have a carbon pollution pricing system that meets the federal standard for stringency.
  • In these provinces, the bulk of direct proceeds from the federal fuel charge is returned directly to eligible households through Climate Action Incentive payments. The remainder of these proceeds is used to support schools, hospitals, small and medium-sized businesses, colleges and universities, municipalities, not-for-profit organizations and Indigenous communities, including through the Climate Action Incentive Fund.
  • The Minister of Environment and Climate Change was the first to announce proposed new funding ($60 million in 2019-2020) for schools in jurisdictions where the federal carbon pollution pricing system is in place. Additional programming will be announced in due course.
  • The Government of Canada does not keep any direct proceeds from the carbon pollution pricing system, and returns all direct proceeds to the province or territory of origin.

Associated Links

Media may contact:

Pierre-Olivier Herbert
Director of Media Relations
Office of the Minister of Finance
[email protected]
613-369-5696

Media Relations
Department of Finance Canada
[email protected]
613-369-4000

General Enquiries

Phone: 613-369-3710
Facsimile: 613-369-4065
TTY: 613-369-3230
E-mail: [email protected]

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