Madam Speaker, like many Canadians, Mr. Baxter runs a successful small business and he wants to know how pricing carbon pollution will affect his business.
The federal carbon pollution pricing system will increase the cost of his fuel by about 5ยข per litre when it comes into effect this spring. However, it is also true that the federal government will return all of the proceeds collected back to every household, including Mr. Baxter's, as well as to small businesses and other sectors that will face higher costs.
The majority of direct proceeds from the fuel charge will be returned directly to individuals and families through climate action Incentive payments. Canadians in Saskatchewan, Ontario, Manitoba and New Brunswick can claim this payment when they file their taxes this year.
The government will also use proceeds to support small businesses like Mr. Baxter's. Small and medium-sized enterprises are a critically important part of the Canadian economy. Providing direct support will help them take climate action and lower their energy costs, while keeping them competitive.
In Saskatchewan, the government estimates that nearly $300 million in proceeds will be available over the next five years to support SMEs in that province. Proceeds are also being earmarked to support schools, hospitals, colleges and universities, municipalities, not-for-profits and indigenous communities.
Through Canada's climate action and clean growth plan, the Government of Canada is providing additional financial support to help companies invest in actions that will increase their energy efficiency and reduce their exposure to carbon pricing.
For example, since 2016, the Government of Canada has allocated over $336 million for investments in public transit projects in Saskatchewan, projects like bus fleet renewals in Saskatoon and Moose Jaw. In addition, over $416 million is allocated for investments in green infrastructure in Saskatchewan for projects that will reduce emissions, build resilience to the impacts of climate change or provide additional environmental benefits such as clean air and clean water.
Canada's climate plan will also help the trucking sector get cleaner over time. Between pricing carbon pollution, new regulations on emissions from heavy-duty vehicles and financial support to help develop new clean technologies, we will see more and more trucks that pollute less. There are many technologies that already exist, like using regenerative braking, new technologies to monitor and maintain tire pressures at optimal levels, more efficient engines and alternative fuels.
Carbon pollution pricing is a necessary and common sense way to reduce our emissions, invest in a cleaner tomorrow for our kids and grandkids and help Canada compete in the emerging global low-carbon economy.