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New Brunswick's government to put a price on carbon pollution from fuels next year

Christian Fernsby |
Canada is committed to ambitious climate action while growing the economy.

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A price on pollution is one of the best tools we have to spur innovation and cut pollution while keeping life affordable for Canadian families.

The Minister of Environment and Climate Change, the Honourable Jonathan Wilkinson, announced that the Government of New Brunswick's proposed provincial fuel charge meets federal stringency requirements for the sources that it covers.

New Brunswick's carbon price will go into effect on April 1, 2020—at a rate of $30 per tonne—once the province passes the relevant legislation.

The Government of Canada intends to stand down the federal fuel charge on the same date.

As in all other provinces and territories that have adopted their own price on carbon pollution, New Brunswick's fuel charge will be subject to annual reviews to ensure it remains in compliance with the federal benchmark stringency requirements.

The benchmark price rises to $40 per tonne in 2021 and $50 per tonne in 2022.

The federal price on carbon pollution has two components: a fuel charge across the economy and a carbon-pricing system for heavy industrial sectors that face international competition.

At present, both parts of the federal system are in effect in New Brunswick.

Today's announcement relates to New Brunswick's proposed fuel charge, which would replace the federal fuel charge next year.

This is separate from the Government of New Brunswick's proposed system for large industrial emitters, which is currently being reviewed by the federal government.

Under the federal approach to pricing carbon pollution over the past year, the bulk of the direct proceeds generated in the province by the federal fuel charge went back to individuals and families in New Brunswick as Climate Action Incentive payments.

Last year, a family of four in New Brunswick received $256 in Climate Action Incentive payments after they filed their income taxes.

New Brunswick's decision to adopt its own price on carbon pollution means that the province will now determine how to invest revenues raised from the provincial carbon price, and New Brunswickers will not receive federal Climate Action Incentive payments in 2020.

As part of the Pan-Canadian Framework, Canada's clean-growth and climate plan, governments are committed to reviewing the approach to pricing carbon pollution by early 2022, with an interim review in 2020.

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