Canada doubling carbon price rebate rural top-up, pausing charge on heating oil: Trudeau
CTV
The Canadian government is doubling the pollution price rebate rural top-up rate, and implementing a three-year pause to the federal carbon price on deliveries of heating oil in all jurisdictions where the federal fuel charge is in effect, Prime Minister Justin Trudeau announced Thursday.
The Canadian government is doubling the pollution price rebate rural top-up rate, and implementing a three-year pause to the federal carbon price on deliveries of heating oil in all jurisdictions where the federal fuel charge is in effect, Prime Minister Justin Trudeau announced Thursday.
The Climate Action Incentive Payment rural top-up rate will be increasing from 10 to 20 per cent of the baseline amount, starting in April 2024. It's a move Trudeau said is to recognize the higher energy costs rural residents are facing.
"If you live in a rural community, you don't have the same options that people who live in cities do. We get that. So, this is more money in your pocket to recognize those realities, even as we continue to fight climate change," Trudeau said.
The temporary pause on the fuel charge on heating oil for homes and small businesses will begin in 14 days, and will apply in all jurisdictions where the federal fuel charge is in effect. The Liberals estimate that this break— slated to be in effect until March 31, 2027—will save an average household that uses heating oil $250 at the current rate.
However, the prime minister acknowledged that with this break, the revenues the government collects will "go down slightly," and as a result the rebate cheques "will be slightly lower."
In addition, part of what the Prime Minister's Office is billing as a "new energy affordability package," the federal government is also rolling out plans to make it easier for Canadians to switch to an electric heat pump to heat their homes, starting first in Atlantic Canada.
This pilot project will see an upfront payment of $250 for low-to-medium-income households that heat their homes with oil. It also includes plans to enhance a program that provides Canadian households funding to help make the transition from heating oil to more efficient and environmentally-friendly electric heat pumps.
