Implementing Carbon Pricing in the NWT

What will an NWT Carbon Tax look like?

Search Implementing Carbon Pricing in the NWT

The GNWT will introduce changes to the Petroleum Products Tax Act to implement the NWT Carbon Tax that will become effective September 1, 2019. When introduced, the NWT Carbon Tax will reflect $20/tonne of greenhouse gas (GHG) emissions for the various types of fuel. The rate will increase annually until 2022 when it will reach $50/tonne.

NWT Carbon Tax Rates

  2019 2020 2021 2022
Gasoline 4.7 7.0 9.4 11.7
Motive diesel 5.5 8.2 10.9 13.7
Non-motive diesel 5.5 8.2 10.9 13.7
Railway 5.5 8.2 10.9 13.7
Heating fuel 5.5 8.2 10.9 13.7
Propane 3.1 4.6 6.2 7.7
Natural gas 3.8 5.8 7.7 9.6
Naphtha 5.1 7.7 10.2 12.8

Administration of the NWT Carbon Tax will similar to the current NWT fuel tax. Tax collectors are typically fuel wholesalers and the process related to tax collection is described in the legislation and related regulations.