Northwest Territories Releases Carbon Pricing Plan

The Northwest Territories (NWT) has launched a website, “Implementing Carbon Pricing in the NWT”, to provide details on its “Made-in-the-North” carbon pricing plan.  The plan is expected to meet the requirements of the federal carbon pricing framework; however, it will be administered by NWT, in a similar manner to the territory’s fuel tax.

The plan includes a carbon tax of $20 per tonne of greenhouse gas emissions, beginning on July 1, 2019, and this will rise annually until reaching $50 per tonne in 2022.  In addition, certain northern-specific initiatives were announced as part of the plan, including:  a full exemption for aviation fuel; rebating 100% of the carbon tax on heating fuel for most residents, businesses and governments; enhancing current benefit programs delivered through the Canada Revenue Agency to partially offset the anticipated impact of carbon pricing on families; and implementing specific rebate programs for the NWT Power Corporation and qualifying large emitters.