The new premier of the Northwest Territories, R.J. Simpson, is urging the federal government to grant the territory a blanket exemption from the carbon tax. He argues that the high cost of living in the Northwest Territories undermines the effectiveness of the tax, particularly due to the high costs of fuel, home heating, and power in the region.
In an interview on Rosemary Barton Live, Simpson emphasized the challenges faced by residents due to the high cost of living in the territory. He highlighted that the carbon tax does not serve as a proper incentive for people in the Northwest Territories to transition to green energy and technologies, considering the lack of infrastructure, non-connectivity to southern power grids, and a climate unsuitable for heat pumps.
Simpson, who became the new premier after the general election in November, also pointed out that the carbon tax is negatively impacting food and housing affordability in a region that heavily relies on federal assistance. He noted that the territory has suffered from wildfires, which led to evacuations of communities like Hay River and Yellowknife, underscoring the real threat of climate change.
Despite the federal government’s announcement in August 2021 that prohibited carbon tax rebates offsetting or negating the impacts of the carbon tax, the Northwest Territories discontinued its carbon tax rebates for heating fuel to comply with the new guidelines. Instead, payments through the NWT Cost of Living Offset were increased by $135 per resident.
The Liberal government’s announcement of a three-year carbon tax exemption for home heating oil and increased subsidies for electric heat pumps was met with criticism from Simpson, who argued that the heat pumps would not function properly in the severe cold of the Northwest Territories.
However, despite the premier’s requests and pressure from Conservative Leader Pierre Poilievre, Prime Minister Justin Trudeau has maintained that there will be no further exemption to the carbon tax.