Mr. Speaker, I am very pleased to speak to the motion moved by the hon. member for Carleton. This gives me the opportunity to talk about what our government is doing to support the economy and protect the environment.
Maintaining a strong economy and fighting climate change are important priorities to us and to Canadians. We share their concerns. With the possible exception of the hon. member for Carleton, Canadians know that there is a cost to pollution. Canadians also know that droughts, floods, and weather have an adverse effect not only on health, but also on the vitality of our economy. A healthy, sustainable economy favours growth and job creation to the benefit of the middle class.
Unlike the previous government, our government does not intend to stand idly by. We have made major investments in order to protect the quality of Canada's air, water, and natural areas. We want to ensure that future generations can still walk in the woods and swim in our magnificent lakes and rivers.
Therefore, to date, our government has allocated $5.7 billion over 12 years in support of the implementation of the pan-Canadian framework on clean growth and climate change. This plan was developed with the provinces and territories and in consultation with indigenous peoples. It will ensure a healthy environment for future generations and support a strong, clean economy. It will also foster innovation and create good, well-paying jobs for the middle class.
Let me remind the House of some of its measures. As a first step in the framework, budget 2016 provided nearly $3 billion over five years to address the effects of climate change and reduce air pollution. In the 2017 budget, the government allocated additional significant investments in green infrastructure and public transit. On top of that, nearly $1.5 billion in new financing was made available to help Canada's clean technology firms grow and expand.
More recently, budget 2018 proposed one of the most significant investments in nature conservation in Canadian history, to protect our ecosystems and biodiversity. In partnership with the provinces, territories, and indigenous peoples, this plan will help preserve 17% of Canada's interior and inland waters. The pan-Canadian framework on clean growth and climate change supports Canada's vision to reduce greenhouse gases by 30% over 2005 levels by 2030, while allowing us to adapt to and build resilience for climate change, which is very real, as we know; its effects are being felt across the country.
To achieve this goal, the key element of our action plan is to put a tax on carbon pollution across the country, because this is effective. It will help us reduce greenhouse gas emissions and to do so at a low cost to businesses and consumers. By focusing on development and new choices to enable Canadians to reduce their carbon footprint, we can stimulate innovation. At the end of the day, we will all benefit from increased economic growth and cleaner growth.
The pan-Canadian framework on clean growth and climate change was developed in collaboration with the provincial and territorial governments, and most provinces support it. A clean environment and a clean economy go hand in hand. That is what we have said and we believe it. Our efforts to tackle climate change are part of our plan to grow the economy and strengthen the middle class. The 2018 budget tabled earlier this year by the Minister of Finance, whom I am fortunate to work with, is doing even more to help Canadians. The new Canada workers benefit will let low-income workers keep more money in their pockets. This will encourage more people to join the labour force and will provide concrete assistance to more than two million Canadians who are working hard to join the middle class.
The Canada child benefit will also be enhanced. Benefits will be increased annually to keep pace with the cost of living starting in July of this year, which is two years earlier than planned.
We are able to do it this year because of Canada's sustained economic growth. By providing more money to families who need it most, this benefit provides a new opportunity for Canadian families. We should also not forget our efforts on behalf of small businesses, who, as we know, create most of the jobs in Canada. We reduced the small business tax to 10% effective January 1 and will be reducing it to 9% next January 1. This represents savings of up to $7,500 a year to help Canadian entrepreneurs and innovators.
The negative impacts of climate change are a challenge that governments must grapple with. We do so with the confidence that a strong economy and a clean environment go hand in hand. Canadians expect all governments to take serious action to grow the economy, protect the environment, and address climate change. We are taking action.
Putting a price on carbon pollution is central to Canada's plan to fight climate change and grow the economy. Carbon pricing is broadly recognized as one of the most effective, transparent, and efficient policy approaches to reducing greenhouse gas emissions.
In December 2016, our government, along with most provinces and territories, worked with indigenous partners and adopted the pan-Canadian framework on clean growth and climate change. The framework includes a pan-Canadian approach to pricing carbon pollution, with the aim of having carbon pricing in place in all provinces and territories. The framework provides provinces and territories with the flexibility to implement their own carbon pollution pricing systems. They can choose between an explicit price-based system or a cap and trade system.
The member for Carleton keeps talking about price hikes. Let me reassure him that the direct cost of the actions in the pan-Canadian framework, including carbon pricing, is projected to be modest, particularly in comparison to the projected benefits. All direct revenues related to carbon pricing will be returned to the jurisdiction of origin. Of course, the precise cost will depend on the design of each provincial or territorial carbon pricing system.
To ensure that a fair price on carbon pollution is in place across Canada, our government has committed to implementing a federal backstop carbon-pollution pricing system. The backstop system would apply in provinces and territories that request it and in jurisdictions that do not have a pricing system in place that meets the federal standard by the end of this year. In such cases, the cost of carbon pollution in the federal backstop system will be set at $20 per tonne of emissions as of January 1, 2019, and the federal system will return direct revenues from the carbon price to the jurisdiction of origin.
That said, we cannot measure the cost of carbon pricing without also measuring its benefits. Those benefits are important, such as reducing air and water pollution and their harmful effects on human health and on the environment.
At the risk of repeating myself, a strong economy and a clean environment go hand in hand. That is why this year's budget proposed further measures to help grow a healthy and sustainable clean economy. For example, budget 2018 includes one of the most significant investments in nature conservation in Canadian history, more than $1.3 billion over five years. This will ensure that future generations can continue to hike in our forests and swim in our lakes and rivers. This will also allow us to enhance the protection of Canada's ecosystems, landscapes, and biodiversity, including species at risk.
Our government is also investing about $1 billion over five years to establish better rules for the review of major projects, an effort that, all at once, aims to protect our environment, rebuild public trust, and help create new jobs and economic opportunities. This builds on the other significant investments made since we took office. For example, budget 2017 included historic investments in green infrastructure and public transit as well as increased support for the Canadian clean-tech sector. Budget 2017 provided up-and-coming companies with increased funding in the form of business equity, working capital, and project funds.
The low carbon economy leadership fund, launched in 2017, is investing $1.4 billion in projects that will generate clean growth and reduce greenhouse gas emissions while creating jobs for Canadians for years to come. In Ontario, where the member for Carleton is from, almost $420 million will be invested to support Ontario's climate change action plan and help Ontarians contribute to fighting climate change.
In Alberta, where the member grew up, and I am sure where he has many friends, almost $150 million will be used to support provincial climate objectives. Alberta's projects will focus on helping Albertans, including farmers and ranchers, use less energy and save money. The province will also invest in restoring forests affected by wildfires.
In Quebec, over $260 million will help expand action under the province's 2013-2020 climate change action plan.
The list goes on, with projects in British Columbia, New Brunswick, and Nova Scotia. It is important to note that only provinces and territories that sign on to the pan-Canadian framework for clean growth and climate change are eligible for funding under the low carbon economy leadership fund.
I just spent a bit of time highlighting the measures announced in 2017 and 2018, but this really started in 2016. That year, our government launched a $1.5 billion national oceans protection plan to improve marine safety and responsible shipping, protect Canada's marine environment, and unlock new opportunities for indigenous and coastal communities.
So far, to combat climate change, our government has already allocated $5.7 billion over 12 years in support of the implementation of the pan-Canadian framework on clean growth and climate change. After years of inaction under the previous government, I think members would agree that this has been welcome news for Canadians.
Pricing carbon pollution is the cornerstone of our efforts to combat climate change. We must reduce our greenhouse gas emissions and send a clear signal to entrepreneurs, industry, and investors that we are moving to a low-carbon future.
Carbon pricing offers many economic benefits, such as lower health care costs, less spending to fight climate change, and more innovation, including energy efficiency improvements.
Such improvements can be very beneficial. For example, in 2013 alone, energy efficiency savings averaged out to $869 per Canadian household.
In conclusion, a clean environment and a strong economy go hand in hand. The global economy is moving toward cleaner growth. Canada cannot stand on the sidelines.
Our government is determined to ensure that Canadians will benefit from the opportunities created by a sustainable economy and all it offers, including a healthier environment for future generations.