After rejecting provincial proposals, the federal government will impose its federal backstop fuel charge (carbon tax) on consumers in the provinces of Newfoundland and Labrador, Prince Edward Island and Nova Scotia. The fuel charge is part of the federal government’s carbon pricing system and it will commence on July 1, 2023. Similar to other provinces who have the federal backstop fuel charge, consumers will receive quarterly rebates – known as Climate Action Incentive Payments.
The federal carbon pricing system also involves an Output-Based Pricing System, which determines the cost of emissions for the industrial sector. PEI uses the federal government’s Output-Based Pricing System while the other Atlantic Provinces have their own pricing systems that meet federal standards.
See this Nova Scotia government press release for more information.
For questions or more information contact
Director, Government Relations (Atlantic)