A Carbon Tax for the NWT?

A Carbon Tax for the NWT?

As one of the most impacted jurisdictions in Canada and the world, it is imperative that the NWT join the fight against climate change by putting a price on carbon. The Federal Government has stated that all Provinces and Territories will need a carbon pricing mechanism. Both British Columbia and Alberta have a carbon tax and it has been proven effective at reducing emissions. Our government signed on to the Vancouver Declaration and is looking at the feasibility of a carbon tax.

80% of Canada’s population already has some from of carbon pricing. What we need in the NWT is a price on carbon that is fair and equitable and promotes decision making that accounts for the costs climate change has on society.

Ecology North developed this carbon tax discussion paper that provides a clear outline of carbon regimes across Canada, the argument for, and two options for a carbon tax that make sense for the NWT. These options take into account small remote communities, and low-income households which have fewer options to change.

It suggests that a carbon tax is the most fair and equitable approach for the NWT. This tax as proposed would only equal 5.5 cents on a litre of gasoline or diesel. Of the roughly $20 million raised annually some would go towards tax relief such as low income tax credits, and a remote community homeowner benefit, some to a reduction in small business and corporate taxes. While 50% of the revenue would go towards green energy solutions, that would lead to long term energy and cost savings for NWT residents.

Have a read of our discussion paper. If you agree that this is the right approach that will redistribute your tax dollars to better reflect our northern values and lead to substantial long term energy and cost savings contact your MLA and let them know, or go to the GNWT budget consultation and email your thoughts about the carbon tax to the Department of Finance at budgetdialogue@gov.nt.ca.

Visit our Carbon Pricing page for more information, and download the Carbon Pricing in the NWT Discussion Paper here.