Climate change is the greatest challenge facing us today. We need to take swift, decisive action to address it. Albertans, industry and government all have a part to play in tackling climate change in our province. We all need to be part of the solution.
A price on carbon does just this by putting the onus of improving the health of the environment and Albertans on all of us. It is the most cost-effective way to achieve significant reductions in emissions, and provides an incentive for everyone, from individual households to large industrial emitters, to make choices with emissions in mind.Beginning January 1, 2017, a levy of $20 per tonne will be applied to transportation and heating fuels like diesel, gasoline, natural gas and propane. This translates to 5.35 cents per litre for diesel, 4.49 cents per litre for gasoline, $1.011 per gigajoule for natural gas, and 3.08 cents per litre for propane. There are some exemptions, such as marked gasoline and diesel used by farmers for farming operations.
Impacts of the carbon levy will vary, depending on your household’s energy use and driving patterns. By taking simple steps to reduce household emissions, you will contribute to Alberta’s low greenhouse gas emissions goals. Small actions like installing a low-flow shower head, using a programmable thermostat or carpooling can reduce costs and help you make the most of your rebate. Reducing your consumption also means you will pay less on the carbon levy as time progresses.
Revenue from the carbon levy will be reinvested into Alberta’s economy. It will be used to diversify our economy, create jobs, reduce emissions, and continue to promote greater energy efficiency.
The carbon levy rebate is one way we are reinvesting in Alberta. The rebate provides transitional support to lower- and middle-income Albertans, and helps offset costs associated with the levy. Two-thirds of Albertans will receive a full or partial rebate.
The rebate is tied to income, not energy use, which provides a financial incentive for families to reduce household emissions by allowing you to keep the difference between the rebate and what you spend. You don’t need to apply for the rebate – you only need to be an Alberta resident, file a 2015 tax return and meet the income criteria.
The rebate will provide up to $200 for a single adult, $100 for a spouse, and $30 for each child under 18 in the household (up to a maximum of four children). Single parents can claim the spouse amount for one child, and the child amount for up to four more children.
To learn more about the carbon levy and rebates, visit alberta.ca/climate or call 310-0000.