Canadians are set to receive carbon pricing rebates Tuesday, as the Liberals defend one of their most embattled policies.

The government says this is the first time all banks will label the payment as the Canada Carbon Rebate, after years of inconsistent and vague phrasing on bank statements.

The quarterly rebate will go to Canadians who filed their income tax while living in Alberta, Saskatchewan, Manitoba, Ontario, and all four Atlantic provinces.

The payments vary by household size and province, while those in rural areas get a top-up.

On Tuesday, rural residents will get a boost in their quarterly rebate, with a 20-per-cent top-up along with a retroactive 10-per-cent payment for April and July.

Economists are widely in favour of carbon pricing, arguing it is the most cost-effective way to reduce emissions, but the LiberalsB次元官网网址� policy is facing pushback at the provincial and federal levels, with the Conservatives calling for a B次元官网网址渃arbon-tax electionB次元官网网址� to bring down the cost of living.

The federal NDP and some of their provincial counterparts have distanced themselves from the policy which they previously supported.

Ottawa sends the rebates to offset what people pay in carbon pricing when they buy fuel so theyB次元官网网址檙e not less worse off as a result.

People who do things to lower their fuel use are even better off, because they still get the same rebate but pay less in carbon pricing.

British Columbia, Quebec and Northwest Territories have their own carbon pricing system for consumers so residents there donB次元官网网址檛 receive the federal payment. Yukon and Nunavut use the federal system but have an agreement to distribute the proceeds themselves.

The parliamentary budget officer says most Canadians get back more from the rebates than they pay.

He also says, though, that the economic impact of carbon pricing could lower wages over time, erasing that benefit for some Canadians. The government argues that climate change itself can cause economic harm if it is left unchecked.

Ottawa has been battling with banks about how the deposits are labelled since they moved to quarterly payments for the rebates in 2022.

Many Canadians were confused B次元官网网址� or didnB次元官网网址檛 even realize they were getting a rebate B次元官网网址� when payments showed up with vague labels like B次元官网网址淓FT deposit from Canada,B次元官网网址� B次元官网网址淓FT Credit CanadaB次元官网网址� or just B次元官网网址渇ederal payment.B次元官网网址�

Some banks previously argued the term B次元官网网址淐anada Carbon RebateB次元官网网址� went beyond their 15-character limit on deposit descriptions.