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Government of Canada to help schools, hospitals, and businesses take climate action

Ensuring a minimum price on pollution everywhere in Canada is an important component of Canada’s plan to fight climate change and build a net-zero economy. For provinces that do not have their own system that meets the federal benchmark, a federal backstop system applies. The federal system returns all direct revenues to the jurisdiction where they were collected, with 90 per cent returned directly to Canadians through their Climate Action Incentive. The other 10 per cent helps organizations and communities take climate action, with various ministers responsible for the disbursement of funds, including the Minister of Natural Resources.

To address delays in disbursement caused by COVID-19, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, has authorized a one-year extension for the Minister of Natural Resources to disburse 2019-20 federal price on pollution proceeds in Saskatchewan, Manitoba, Ontario, and New Brunswick. The Minister of Natural Resources now has until the end of the 2021-22 fiscal year to invest in eligible energy efficiency projects at schools, hospitals, small- and medium-sized businesses, colleges, universities, municipalities, not-for-profit organizations, or in Indigenous communities in those provinces.

By investing in energy efficiency projects, these organizations will not only reduce their pollution—they will reduce their energy bills, too. This will help create good local jobs and help build a cleaner, healthier environment.

Backgrounder

In keeping with her authority under the Budget Implementation Act, 2019, No. 1, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, is specifying a one-year extension for the Minister of Natural Resources to disburse the 2019-20 proceeds from the federal price on carbon pollution.

The table below details the Deputy Prime Minister and Minister of Finance’s specifications. The table also includes a summary of 2019 specifications for the Ministers of Environment and Climate Change, Crown-Indigenous Relations, and Indigenous Services.

The Deputy Prime Minister and Minister of Finance is also specifying the Minister of National Revenue as responsible for disbursing a portion of the 2019-20 proceeds from the price on carbon pollution to the Government of New Brunswick.

Table 1
2019-20 Specified Price on Pollution Proceed Amounts to Disburse over the 2019-20 to 2021-22 Period
$ millions
Small- and Medium-Sized Enterprises
  Ontario Saskatchewan Manitoba New Brunswick Total
Minister of Environment and Climate Change1 102.09 30.06 13.09 0.37 145.61
Minister of Natural Resources2 1.40 0.41 0.18 0.07 2.07
Sub-total 103.49 30.47 13.27 0.44 147.67
Schools, Hospitals, Colleges, Universities, Municipalities, Not-For-Profit Organizations, and Indigenous Communities
  Ontario Saskatchewan Manitoba New Brunswick Total
Minister of Environment and Climate Change1 46.04 13.53 6.05 2.02 67.64
Minister of Natural Resources2 5.17 0.21 0.09 0.04 5.50
Minister of Crown-Indigenous Relations1 0.53 0.47 0.19 0.00 1.19
Minister of Indigenous Services1 0.00 1.03 0.31 0.30 1.64
Sub-total 51.75 15.23 6.64 2.35 75.97
Direct Return to the Government of New Brunswick
  Ontario Saskatchewan Manitoba New Brunswick Total
Minister of National Revenue3 0 0 0 5.05 5.05
Total1 155.24 45.70 19.91 7.84 228.70
Notes:
Totals may not add up due to rounding.
1 This specification of May 21, 2021 does not alter the time period for the Ministers of Environment and Climate Change, Crown-Indigenous Relations, and Indigenous Services to disburse the 2019-20 fuel charge proceeds.
2 The effect of this specification of May 21, 2021 is that the Minister of Finance is extending the time period for the Minister of Natural Resources to disburse the 2019-20 fuel charge proceeds for one additional year (to the end of 2021-22).
3 The effect of this specification of May 21, 2021 is to make the Minister of National Revenue responsible for disbursing to the Government of New Brunswick a portion of the 2019-20 proceeds that was previously the responsibility of the Minister of Environment and Climate Change. The effect is also to extend the period in respect of which the proceeds may be disbursed for one additional year (to the end of 2021-22).


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