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Quebec Reimbursing Farmers for Fuel Tax, Says Measure Will Help Competitiveness
More than 15,000 farmers will start receiving payments in July as Quebec uses its climate change fund to cover carbon-market fuel taxes.
On Friday, Quebec Premier Christine Fréchette announced the government will reimburse more than 15,000 farmers $87 million for carbon-market fuel taxes, with reimbursements beginning in July.
This decision responds to years of complaints from the Union des producteurs agricoles, or UPA, which argued farmers contributed more to climate change initiatives than they received in support.
Quebec's cap-and-trade system, which is linked to California, involves companies bidding every three months for emission 'units' that become more expensive as the emissions cap decreases over time.
UPA President Martin Caron called the commitment a "major win for the competitiveness and scalability of our businesses," while urging further reductions in administrative and regulatory burdens.
Fréchette stated the funding helps farmers compete with jurisdictions lacking high environmental standards, while remaining convinced the agricultural sector will continue reducing its carbon footprint.
Christine Fréchette points out that the government is seeking to "strengthen its competitiveness", thereby "reducing the financial pressure of the agricultural sector"