Frequently Asked Questions

What is the Fuel Charge Proceeds Return Program

The Fuel Charge Proceeds Return Program (FCPRP), administered by Environment and Climate Change Canada (ECCC), will support the return of fuel charge proceeds collected under the federal carbon pollution pricing system to their jurisdictions of origin, as outlined in the Greenhouse Gas Pollution Pricing Act.

The FCPRP will return over $2.5 billion in fuel charge proceeds as direct payments to eligible small and medium-sized enterprises (SMEs), specifically those in emissions-intensive and trade-exposed (EITE) sectors (“EITE SMEs”).

What is the Carbon Pollution Pricing System?

Carbon pricing is about recognizing the cost of pollution and accounting for those costs in daily decisions. Putting a price on carbon pollution is widely recognized as the most efficient means to reduce greenhouse gas emissions while driving innovation. Since 2019, every jurisdiction in Canada has had a price for carbon pollution. Canada’s approach is flexible: any province or territory can design its own pricing system tailored to local needs or choose the federal pricing system. The federal government sets minimum national stringency standards (the federal ‘benchmark’) that all systems must meet to ensure they are comparable and effective in reducing greenhouse gas emissions. If a province or territory decides not to price pollution or proposes a system that does not meet these standards, the federal system is put in place. This ensures consistency and fairness for all Canadians.

What are Emissions-Intensive and Trade-Exposed Businesses (EITE SMEs)?

In Canada, Emissions-Intensive Trade-Exposed businesses (EITE SMEs) are industries with high greenhouse gas (GHG) emissions and face significant competition in international markets. These industries are typically heavy industries such as manufacturers of refined petroleum products, iron and steel, cement, aluminium, chemicals, fertilizer, and pulp and paper, as well as the mining, energy, oil and gas sector. They are crucial to Canada’s economy as they transform natural resources into basic materials for various goods, employ over a million Canadians, and are significant emitters of carbon emissions. Due to their international competitiveness, these industries are particularly vulnerable to carbon pricing programs and other emission reduction requirements, which can place them at a competitive disadvantage compared to foreign competitors with no or lower emission restrictions