Banff 
On January 15, 2024, Canadian residents in provinces subject to the federal fuel charge will receive their first Climate Action Incentive payment (CAIP) of the year, a key component of Canada’s pollution pricing strategy.
This initiative aims to mitigate climate change while financially supporting individuals and families.
CAI payments are paid out to residents of provinces where the federal carbon pollution pricing system applies to help them reduce the cost of the extra regulatory charge on fossil fuels like gasoline and natural gas, known as the fuel charge.
The CAIP will be delivered through direct bank deposits or cheques, with a family of four receiving varying amounts based on their province: $386 in Alberta, $264 in Manitoba, $184 in New Brunswick, $328 in Newfoundland and Labrador, $248 in Nova Scotia, $244 in Ontario, $240 in Prince Edward Island, and $340 in Saskatchewan.
Individual rebates for the first adult range from $92 in New Brunswick to $193 in Alberta. The second adult in each household is eligible for half the first adult’s rebate, with New Brunswick again providing the lowest ($46) and Alberta the highest ($96.50). For children, the rebate starts at $23 in New Brunswick and goes up to $48.25 in Alberta.
Credit: Environment and Climate Change Canada
Per the news release, this pollution pricing system ensures that 80% of households receive more from the rebate than they pay, particularly benefiting low- and middle-income families.
Additionally, residents in small and rural communities receive a 10% supplement on the base rebate, which will increase to 20% from April 2024, acknowledging their higher energy demands and limited access to cleaner transport options.
The federal government says 90% of the pollution pricing proceeds are returned directly to households, with the remaining 10% aiding small- and medium-sized enterprises, Indigenous groups, and farmers. Canadian residents automatically receive these rebates by filing their income tax and benefit return, with the amount varying based on household composition and location.
The CAIP payments are scheduled quarterly on the 15th of April, July, October, and January, with adjustments made for weekends and federal holidays.
The CAIP is not available for residents of British Columbia, Northwest Territories, Nunavut, Quebec and Yukon.
Who & When – Climate Action Incentive (CAI) payment on Jan 15, 2024
Those who have filed income taxes and are residents of Alberta, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island, Saskatchewan on the first day of the payment month are eligible, provided they were tax residents in the month prior to the payment is paid and who meet at least one of the following conditions during the same period:
- You are 19 years of age or older
- You have (or previously had) a spouse or common-law partner
- You are (or previously were) a parent and live (or previously lived) with your child under 19 years of age who is registered for the Canada child benefit
will receive the payment on January 15th.
Those who have signed up for direct deposits from the Canada Revenue Agency will see these payments in their bank accounts as “Climate Action Incentive.” For those not registered for direct deposit, cheques will be mailed out.
Those who have not received payments should only contact the CRA if they have not received it within ten working days of the expected payment date.
