The federal government on Tuesday announced its new carbon pricing benchmark, which will raise the cost of fuel in Newfoundland and Labrador — although residents will get quarterly payments that can offset the expense.
Environment and Climate Change Minister Steven Guilbeault said Newfoundland and Labrador will be one of nine provinces and territories to fall under the federal government's backstop carbon tax.
"We've created a pollution-pricing system where, over time, it becomes more expensive to pollute," he said.
On July 1, the price of fuel will rise — but that month, people living in Newfoundland and Labrador will receive the first of three "climate action incentive" payments. Residents will get the cheques regardless of how much fuel they use.
Newfoundland and Labrador residents will get their first climate action incentive cheques in July. Individual adults will receive quarterly payments of $164, with an additional $82 if a second adult lives in the home. Households will also get $41 for each child who lives in the home, meaning a family of four will get annual payments of $1,312.
"Eight out of 10 households will get more money back than they pay," he said.
When carbon pricing in Canada began in 2019, the federal government approved the provincial government's approach to the carbon tax, which exempted home heating fuel.
- Trudeau says Canada is not falling behind the U.S. on climate action
- New $250M federal grant program will help offset costs of switching from oil to heat pumps
Earlier this year, the provincial government submitted the same plan, along with a letter from Premier Andrew Furey, who begged the federal government not to impose the tax on home heating fuel in Newfoundland and Labrador, where about 48,000 homes are heated using oil.
Guilbeault's announcement confirms the federal government has rejected Furey's request.
'Not listening'
Provincial Environment and Climate Change Minister Bernard Davis said he was disappointed by the announcement.
"We're not opposed to the … carbon tax, we're opposed to the carbon tax as it exists today," he said.