Canada carbon rebate goes out today as future of carbon tax remains unclear

A person pumps gas at a gas station in Mississauga, Ont., Tuesday, Feb. 13, 2024. THE CANADIAN PRESS/Christopher Katsarov

OTTAWA — The first carbon rebate of 2025 is being paid out today to households in provinces that use the federal carbon pricing system — even as the future of the rebate program itself remains uncertain.

For a family of four, the rebate will pay out anywhere from $190 in New Brunswick to $450 in Alberta, with people in small and rural communities receiving a 20 per cent boost to their rebates.

With the Liberals' keystone climate policy under sustained political attack, the federal government has attempted to improve its communications on the file by arguing that most Canadians get more money back from the program than they pay.

Conservative leader Pierre Poilievre has vowed to “axe the tax” if elected, and even Liberal leadership prospect Mark Carney told a Senate committee in May the carbon tax had “served its purpose, until now.”

It’s unclear whether Carney’s leadership platform will support the measure.

Whether the carbon tax has contributed to Canadians' increased cost of living has been the subject of rigorous policy debate.

While some academics have linked the carbon tax to a rise in the cost of goods, due in part to higher fuel costs in the transport sector, others argue it has had a minimal impact. They say global factors, like surging energy prices and supply-chain disruptions, have pushed prices higher in Canada.

Wednesday’s payment is the first of four instalments planned for 2025.

This report by The Canadian Press was first published Jan. 15, 2025.

The Canadian Press