Today, the Federal Government announced it’s plan to support small and medium sized businesses as they work to fight climate change: The Climate Action Incentive Fund.
Under the Federal Government’s carbon tax, businesses and consumers are both required to pay the cost of polluting the atmosphere. The plan eases the cost burden of carbon pricing for consumers by delivering 90% of the revenue it collects from the price back to households. The Government earmarked the remaining 10% to help small and medium sized businesses make those same adjustments fairly, but up until today, it was unclear how the government would deliver on that promise.
Under the Climate Action Incentive Fund, small and medium-sized businesses such as restaurant owners, farmers, truck drivers, convenience and small grocery store owners in Saskatchewan, Manitoba, Ontario and New Brunswick – the four provinces where the federal price on pollution applies — are able to apply to receive funds between 25% and 50% for energy-saving equipment and 25% for energy retrofits. These investments will help make small and medium-sized businesses across the economy more productive and competitive as they reduce their energy costs and transition to more environmentally friendly practices.
“We are glad to see the Government take this action as it treats small and medium sized business owners fairly and, like the rebate that goes back to households, helps them adjust to the costs of fighting climate change,” said Michael Bernstein, Executive Director of Canadians for Clean Prosperity. “It’s important that we all do our part, as consumers and businesses of all sizes, to combat the climate crisis, and it’s equally important that the solution to this problem, carbon pricing, be delivered fairly. We would still like to see the revenue from carbon pricing returned directly to businesses through grants or tax cuts, as we believe it would be more efficient and effective than picking specific technologies or projects.”