Mr. Speaker, climate action is critical to Canada’s long- term health and economic prosperity. Carbon pricing is widely recognized as the most efficient means of reducing our greenhouse gas, GHG, emissions, which is why the Government of Canada continues to make sure that it is not free to pollute in Canada.
Pollution pricing applies broadly throughout Canada. The federal fuel charge is generally paid by fuel distributors.
The federal price on pollution is revenue-neutral for the federal government; the direct proceeds from the federal carbon pricing system remain in the province or territory where they are collected. Put simply, every dollar collected from the carbon price is returned.
In provinces where the federal fuel charge applies, over 90% of projected direct proceeds are returned to residents of those provinces through the quarterly Canada carbon rebate. Most households receive more in rebates than the costs they face from the federal pollution pricing system. The other projected fuel charge proceeds are used to support small and medium- sized businesses and indigenous governments. Proceeds relating specifically to the use of natural gas and propane by farmers are returned directly to farmers via a refundable tax credit.