British Columbia, Alberta, Quebec, Newfoundland, and the Northwest Territories all put a price on pollution high enough to meet federal standards and the revenues in those provinces are being handled by those provincial governments.
In 2017, he gave them nearly a year to come up with a plan of their own that met federal standards.
This morning Prime Minister Justin Trudeau and a slate of ministers will be announcing how they plan to put carbon tax money back in the hands of Canadians in provinces that have rejected Ottawa's call for a climate plan that puts a price on pollution. A cubic metre of natural gas will cost 3.91 cents more, or about $8 more per month for the average household. What is a carbon tax?
The average Manitoba family is expected to get a $336 rebate; an Ontario family is expected to get a $300 rebate; and a New Brunswick family is expected to get a $248 rebate. Saskatchewan, Manitoba, Ontario and New Brunswick have not complied and will have a federal carbon levy on fuels as well as a cap-and-trade style of system for large industrial emitters imposed on them.
The payment will vary depending on family size and where someone lives.
All proceeds from the tax - to be collected from individuals and industry - will be remitted to households in the form of rebates or used to pay for projects to improve energy efficiency and cut Carbon dioxide emissions, making it revenue-neutral and to "help Canadians adjust to this new reality", he said.
But he added there are still parts of the country,"where people refuse to get it". Roughly 47 per cent of Canadians live in provinces that have said they will not follow through on the national climate framework.
"Nobody has to be convinced anymore that the environment is something we need to take care off, the questions now is, are we going to act or not?"
Trudeau, whose ruling Liberals face an election in October 2019, told a news conference that all the money collected would be returned directly to taxpayers in the four provinces without plans to curb the emission of greenhouse gases.
The feds will also provide funding to those provinces' cities, schools, hospitals, businesses and Indigenous communities to help them become more energy efficient, according to the announcement.
Not everyone believes him, and the next election is shaping up to be a battle royale over the carbon price.
Officials say 70 per cent of people in those provinces will get back more than they end up paying out as fuel costs rise to incorporate the carbon tax.
Trudeau has said an Ontario family of four would receive $307 back through the rebates this spring, with that figure doubling by 2022. He has yet to explain exactly what he would do to cut Canada's emissions, but hinted last weekend his plan would find ways for Canada to reduce global emissions rather than domestic ones.
Environment groups were happy with the carbon price but say the government has to do much more.
Ottawa's price will start at $20 a tonne on January 1, and rise $10 a year until it hits $50 in 2022.
Canada pledged to reduce its carbon emissions by 30 percent below 2005 levels by 2030.
Green Party Leader Elizabeth May applauded the announcement but said Canada needs to increase its target and adjust its plans accordingly.
Trudeau has said that the tax will start at a minimum of $10 a tonne in 2019, rising by $10 each year to $50 a tonne by 2022. It said it would provide reimbursements for small -and medium-sized companies, but did not specify what mechanism would be used, promising instead to release details in early 2019.
- with files from Ian Bickis in Toronto, Peter Rakobowchuk in Montreal.