(Ottawa) Prime Minister Justin Trudeau announced that starting next April, the government will double the amount of the carbon price reduction rebate for rural Canadians.
Published yesterday at 7:35 p.m.
In a press release, the government announces that from April 2024 it will double the pollution price discount rate from 10 to 20% of the base amount.
Mr. Trudeau also said there would be a temporary three-year pause on carbon pricing measures for heating oil supplies. This suspension would begin in two weeks.
A government press release says this change will mean households using oil to heat their homes could save an average of around $250 a year at current tariffs.
As part of a pilot project, low- and middle-income households in Atlantic Canada will receive an upfront payment of $250 if they currently heat their home with oil and register to install a heat pump under the provincial federal program.
The amount of federal funding that eligible homeowners can receive for installing a heat pump is also increasing. According to the government, this will save households around $2,500 on energy costs.
“We saw that the price of pollution was not enough to get enough people to switch to heat pumps. That’s why today we are announcing a program that will distribute heat pumps free of charge to people with average income or less and offer heat pumps to everyone else.” “They will buy heat pumps right from the start, which they can pay for with the savings made over the years,” announced Trudeau on the sidelines of a press conference on Parliament Hill.
“We want this change to happen quickly, so we are providing a three-year period during which the price of pollution associated with oil heating will not be charged so that people can benefit and be motivated to take advantage of this program take,” he added.
Mr. Trudeau explained that this means low-income households can get a heat pump for free.
Strengthening the Low-Cost Fuel Oil to Heat Pump Conversion Program will be implemented in collaboration with provinces and territories to increase the amount of federal funding eligible homeowners can receive to install a heat pump from $10,000 to $15,000.
A government press release said this will provide up to $5,000 in additional grants to match provincial and territorial contributions under joint implementation agreements.
Conservative leader Pierre Poilievre believes Mr. Trudeau made the announcement because of recent polls showing the Conservatives leading the way in voting intentions.
“After slumping in the polls, the hesitant and desperate Justin Trudeau is now making a U-turn on his carbon tax, while I am hosting a massive pro-tax rally in a Liberal-controlled Atlantic resort. He admits he is not worth the price,” Mr. Poilievre wrote on X (formerly Twitter).
The temporary suspension of the application of the fuel levy to deliveries of light heating oil is effective for the next three years in those provinces and territories where the fuel levy is imposed. These are Alberta, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Nunavut, Ontario, Prince Edward Island, Saskatchewan and the Yukon.