These are called 'Vehicle Scrappage Programs' that have been developed by various local organizations and are partially funded by Environment Canada. The programs vary and are only available in certain locations. You can find out more in this June/03 Press Release: http://www.ec.gc.ca/press/2003/030616_b_e.htm
Here is excerpt: "To be eligible for most scrappage programs, the owner must reside in the area where the scrappage programs are operating; the vehicle must be insured for the past six to twelve months; and be capable of being driven to a recycling contractor's scrap yard. Owners of 1987 model year and older vehicles who qualify can choose to scrap their vehicle in exchange for one of the incentives offered in their localities. They may include: transit pass, or car-sharing opportunities, or rebate toward the purchase of a new or newer vehicle, or rebate toward the purchase of a new bicycle."