Government of the Northwest Territories announces approach to carbon pricing
YELLOWKNIFE (July 11, 2018) – The Government of the Northwest Territories (GNWT) is releasing its planned approach to implementing carbon pricing in the Northwest Territories (NWT). The made in the North approach balances implementing carbon pricing as a tool to incent behaviors to reduce greenhouse gas emissions (GHG), with investments in initiatives and programs that lead to greater use of renewable and cleaners fuels, while ensuring that we minimize impacts on the cost of living and doing business in the NWT.
The GNWT is a signatory to the Pan-Canadian Framework on Clean Growth and Climate Change. That framework included introduction of carbon pricing along with a series of commitments to other actions related to reducing emissions and advancing projects in partnership with Canada. The GNWT continues to work with the federal government on other aspects of implementing the Pan-Canadian Framework.
The planned approach recognizes that there is already considerable incentive for residents and businesses to minimize energy use due to the high costs. Our large distances between communities and cold climate contribute to the high cost of living and doing business in the NWT. A broad based approach that includes carbon pricing, investments to reduce emissions, and advancing transformational energy projects like the Taltson hydro expansion are needed to support our climate change goals.
“The approach to carbon pricing planned for the NWT balances managing the high cost of living and doing business in the NWT and the need to do our part to address climate change. Carbon pricing is just one of the components of our overall approach and we are implementing it in a way that reflects our northern realities.”
– Robert C. McLeod, Minister of Finance
Some of the key components of the NWT approach to carbon pricing include:
- Introducing a NWT carbon tax on fuels effective July 1, 2019 based on $20/tonne of GHG emissions. This would increase annually to $50/tonne.
- Excluding aviation fuel from carbon pricing.
- Rebating 100% of the carbon tax for heating fuel for most residents, businesses, and governments.
- Enhancing benefit programs to offset the impact of carbon pricing on NWT families through benefits that will be delivered through the Canada Revenue Agency on behalf of the GNWT.
- Rebating the NWT Power Corporation for carbon tax payments related to fuel needed to produce electricity, in order to ensure electricity rates do not increase.
- Establishing rebate program for large GHG emitters to partly offset the impact of carbon pricing and to incent investments to reduce GHG emissions.
- Investing in GNWT initiatives that reduce emissions and address climate change as identified in the 2030 Energy Plan and NWT Climate Change Strategic Framework.
The results of the federal-territorial analysis of the impact on carbon pricing in the NWT and the results of the public engagement on carbon pricing completed by the GNWT can be found at:
- Backgrounder_ Carbon Pricing_EN
- Implementing NWT Carbon Pricing_EN
Senior Communications Officer
Tel: (867) 767-9151 ext. 14032