Quebec to refund farmers $87M in fuel taxes amid carbon market pressure

Quebec Premier Christine Fréchette has announced a plan to reimburse farmers for fuel taxes tied to the province’s carbon market. The move follows pressure from the Union des producteurs agricoles (UPA), which argued that farmers were paying more into climate efforts than they received in support. The government will now return $87 million to help ease the financial burden on agricultural businesses. The reimbursement scheme will cover taxes paid by farmers in 2026 and 2027. Over 15,000 farmers across Quebec will start receiving payments from July. The funds will come from the province’s climate change fund, designed to support environmental initiatives.

Premier Fréchette made the commitment after the UPA highlighted concerns about competitiveness. The union claimed that Quebec farmers faced higher costs compared to producers in regions with weaker environmental rules. UPA President Martin Caron welcomed the decision, calling it a 'major win' for the sector’s growth and stability. The Opposition Liberals had previously pointed out that farmers contributed $480 million over four years to the carbon market. Despite the reimbursements, Fréchette stated that she expects farmers to keep reducing their greenhouse gas emissions.

The $87 million reimbursement aims to support farmers while maintaining Quebec’s climate goals. Payments will begin in July, offering relief to thousands of agricultural businesses. The policy also seeks to balance environmental standards with the need for a competitive farming industry.