Carbon Tax

On October 31, 2022, the GNWT announced changes to the territory’s approach to the NWT carbon tax system to align with new federal government requirements. The change includes the introduction of a bill to amend NWT carbon tax rates, as well as proposed changes to how the GNWT offsets the carbon tax’s impact on the cost of living and economic development.

See Carbon Tax Proposal (April 2023) for a summary of the proposed changes.

As of September 1, 2019, the Government of the Northwest Territories charges a carbon  tax on all fuel sold in the NWT according to the Petroleum Products and Carbon Tax Act and Regulations.

For specific information on how the carbon tax may impact you, please click on one of the following links:

Where can I find information about the carbon tax rates on fuel in the NWT?

The NWT Carbon Tax Rate Schedule provides the carbon tax rates for different types of fuel.

Effective April 1, 2023, the carbon price will increase annually by $15/tonne of carbon dioxide equivalent emissions, starting at $65 a tonne and rising to $170 a tonne by 2030.

Are there exemptions from the carbon tax?

The following are exempted from the carbon tax:

  • aviation fuel purchased in the NWT;
  • fuel in a  pre-packaged, factory-sealed container with a volume of 10 litres or less;
  • fuel delivered to, or purchased by, an Indian or Indian band on a reserve under the Indian Act (Canada); and
  • fuel delivered to, or purchased by, a visiting force as defined in the Visiting Forces Act (Canada).

Integrated approach to climate change

Strengthening the GNWT’s leadership and authority on climate change is a Mandate priority. Taking action on climate change is shared responsibility and requires partnerships and support from NWT residents.

The Department of Environment and Natural Resources (ENR) is responsible for overseeing the implementation of the 2030 NWT Climate Change Strategic Framework and  2030 NWT Climate Change Strategic Framework 2019-2023 Action Plan and leads the government’s integrated response to climate change by coordinating GNWT departments and external partners. The GNWT publishes an annual plain language report to keep residents informed on how climate change is being addressed. The report includes updates from the NWT Climate Change Action Plan Annual Report, the Energy Initiatives Report and the NWT Carbon Tax Annual Report.