Federal carbon-price rebates to rise more than expected in Manitoba and Ontario

The value of carbon-price rebate cheques from the federal government will jump more than 66 per cent in Ontario and Manitoba this year, to make up for too-small rebates the last two years.

The second annual report on federal carbon pricing, which was tabled in the House of Commons this week, shows Canada collected more than $4.2 billion in carbon pricing on consumers and small businesses in 2020-21.

Nearly $4.1 billion was returned in rebates, but for the second year in a row the cheques in Ontario and Manitoba fell shy of the requirement that 90 per cent of revenues collected be returned to the province where they were paid.

In Alberta and Saskatchewan, the only other provinces in the federal carbon-pricing system, rebates exceeded that target.

So this year, as the carbon price rises another $10 to be $50 per tonne of emissions produced, Ontario and Manitoba families will see a bigger jump in their rebate cheques than expected.

The rebates are also going to be paid quarterly in 2022 for the first time, rather than a single lump sum payment issued with tax returns.