Carbon Tax

NWT Carbon Tax Offsets for Large Emitters and New Mining Entrants

The Government of the Northwest Territories (GNWT) will remove the Northwest Territories carbon tax for all consumers except large emitters on April 1, 2025.

The GNWT has taken this step to align with changes in the Government of Canada’s carbon pricing policy to eliminate the federal consumer carbon tax. Regulatory changes will provide at-source carbon tax rebates to all consumers except the diamond mines, which are currently the territory’s only large emitters. These regulatory changes will remain until Canada repeals its carbon tax through legislation at which point the Northwest Territories’ carbon tax will also be repealed through legislation.

For more information: https://www.gov.nt.ca/en/newsroom/gnwt-ending-nwt-carbon-tax-most-users-...

The GNWT established a large emitter facility-specific program starting April 1, 2023 that sets a baseline fuel consumption level (as a proxy for emissions) and provides a 72 per cent rebate of carbon tax paid on diesel fuel to the baseline.

Facility baselines are set as the average fuel consumption for set periods for each large emitters.

The Petroleum Products and Carbon Tax Regulations can be found here,  specifically in Section 6.2.