Current Status
Since April 1, 2025, carbon tax has been removed from most carbon-based fuels sold in the Northwest Territories. Carbon pricing now applies only to prescribed large industrial emitters under the Petroleum Products and Carbon Tax Act. Residents and most businesses no longer pay carbon tax on fuel purchases.
Large Industrial Emitters
The Northwest Territories maintains a carbon pricing system for prescribed large industrial emitters to meet federal carbon pricing requirements with a made-in-the Northwest Territories system that better reflect territorial economic circumstances.
Prescribed large emitters pay carbon tax and may receive partial rebates based on benchmark fuel volumes established under territorial legislation and regulations.
In 2026, the Petroleum Products and Carbon Tax Regulations were amended to increase the rebate available to prescribed large emitters from 72 per cent to 85 per cent of benchmark fuel volumes. The amendment aligns the territorial system with federal industrial carbon pricing changes announced on May 15, 2026.
Legislation and Regulations
The territorial carbon pricing system is established through:
• Petroleum Products and Carbon Tax Act
• Petroleum Products and Carbon Tax Regulations
Carbon Pricing Reports
The Northwest Territories carbon pricing system has evolved over time in response to territorial and federal legislative and policy changes.
Historical information, including annual reporting on carbon tax revenues and expenditures, is available through the publications below. Current information on territorial carbon pricing is available on this page.