busOTTAWA (Reuters) – Canadian Prime Minister Justin Trudeau on Thursday announced a three-year carbon tax exemption for home heating oil and higher carbon tax rebates for people in rural areas, measures he said were intended to bring relief amid soaring costs of living.
The Trudeau government has implemented a carbon pricing system to combat climate change, but some lawmakers in his own party have called for changes to the scheme, in particular in the Atlantic Canada region where a disproportionate number of households use oil to heat their homes.
Trudeau, noting the impact of high inflation, said fighting climate change must be done while supporting all Canadians.
“This is an important moment where we’re adjusting policies so that they have the right outcome,” Trudeau told reporters in Ottawa. “We are doubling down on our fight against climate change … (while) we are supporting Canadians.”
The pause on the carbon tax on heating oil will begin in 14 days, while higher rebates for individuals and families in rural Canada will start in April.
The pause would give Canadians time to switch to electric heat pumps, Trudeau said.
He also announced a plan, piloting in Atlantic Canada, to install a free heat pump for people at or below median household income.
Canada, the world’s fourth-largest oil producer, is aiming to cut emissions 40-45% below 2005 levels by 2030.
(Reporting by Ismail Shakil and Nia Williams; Editing by Chris Reese)
