Mr. Speaker, in cabinet and cabinet committees, as well as in meetings, phone calls and other conversations with cabinet colleagues, the Minister of Employment, Workforce Development and Official Languages works to ensure that the voices of Alberta businesses, stakeholders, industries, communities and residents are heard.
As Albertans and Canadians across the country continue to face the impacts of climate change, including the devastating impacts of fires, floods, heat waves, and atmospheric rivers that have threatened lives and our communities, the minister continues to support urgent climate action. As confirmed by leading economists, the most effective market-based mechanism for reducing carbon emissions is a price on pollution. In jurisdictions where the federal carbon pricing backstop applies, such as Alberta, Canadians receive climate action incentive, or CAI, payments from the federal government to help individuals and families offset the cost of the federal pollution pricing. It consists of a basic amount and a supplement for residents of small and rural communities. In Alberta, an average family of four will receive $1,544 this year.
The Government of Canada has changed the payment method for the CAI from a refundable credit claimed annually on personal income tax returns to quarterly tax-free payments made through the benefit system starting in July 2022.
On October 26, 2023, it was announced the government is moving ahead with doubling the CAI payment rural top-up rate in Alberta and elsewhere, increasing it from 10% to 20% of the baseline amount starting in April 2024. People who live in rural communities face unique realities, and this measure will help put even more money back in the pockets of families dealing with higher energy costs because they live outside a large city.
Furthermore, the Government of Canada continues to support the adoption of heat pumps as an alternative source of home heating across the country. Albertans qualify for a $5,000 grant to support the installation of a ground source heat pump that meets Canada’s efficiency regulations.