Today, families in Central Alberta are set to receive the highest quarterly carbon rebate payments among provinces under the federal pricing system, as Alberta leads in rebate amounts.
An average family of four in Alberta will receive $450 per quarter, or $1,800 annually, through the Canada Carbon Rebate. For rural families, an additional 20 per cent supplement increases payments to $540 per quarter, or $2,160 annually.
In Alberta, rebates break down like this: $225 per quarter for the first adult ($270 for rural residents), $112.50 for the second adult ($135 for rural residents), and $56.25 per child ($67.50 for rural residents).
Families in rural areas qualify for the top-up by checking a box on their tax returns. Payments are issued to the first person in the household who files their return.
While Alberta leads the pack, other provinces receive smaller rebates for a family of four. Saskatchewan families receive $376, Manitoba $300, Ontario $280, New Brunswick $190, Nova Scotia $206, Prince Edward Island $220, and Newfoundland and Labrador $298. Rural families in these provinces qualify for a 20 per cent top-up.
The Department of Finance says most households in provinces under the federal system get more back in rebates than they pay in fuel charges.
In Alberta, the average household pays $1,056 annually in charges but receives $1,779 in rebates—a net benefit of $723. Lower-income families benefit the most from the program’s flat per-person design.
An October 2024 report by the Parliamentary Budget Officer supports these findings. It shows that most households see a net benefit from the rebate but warns of potential costs for higher-income families by 2030.
The PBO projects that higher-income households could face net costs as fuel charges affect investment and employment income. Lower-income families, however, are expected to continue seeing net benefits.
The PBO report focuses on fiscal and economic impacts and does not include the potential benefits of cutting emissions, such as avoiding costs linked to climate change.
The government also says the program has had a minimal impact on inflation. Since 2019, it has contributed less than 0.5 per cent to price increases. Rising energy prices and global supply chain disruptions, the government says, are bigger drivers of affordability challenges.
The federal carbon pricing system is expected to help Canada cut greenhouse gas emissions by 40 to 45 per cent below 2005 levels by 2030. Pollution pricing will account for one-third of these reductions. By 2030, the program is also projected to reduce greenhouse gas emissions by 13 million tonnes and lower GDP by 0.6 per cent.
Rebate proceeds also support farmers, Indigenous communities, and small businesses that are disproportionately affected by climate change.
The federal government estimates that by 2050, the program will help create 2.68 million clean energy jobs in the renewable energy, transportation, and green building sectors.
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