Implementing Carbon Pricing in the NWT

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The Government of the Northwest Territories (GNWT) has released its planned approach to implementing carbon pricing in the Northwest Territories.

As a signatory of by the Pan-Canadian Framework for Clean Growth and Climate Change, the Government of the Northwest Territories committed to meeting a federal benchmark for carbon pricing by 2019. Our “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, with ensuring that we minimize impacts on the cost of living and doing business in the Northwest Territories.

Some of the key components of the NWT approach to carbon pricing include:

  • Introducing a NWT carbon tax on fuels effective September 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.