Yukon and pollution pricing

Protecting the environment and growing the economy go together. In 2016, the federal government worked with provinces, territories, and with input from Indigenous Peoples, on Canada’s first comprehensive climate action plan, which includes a stringent, fair and efficient price on carbon pollution.

As part of Canada’s plan, provinces and territories had the flexibility to maintain or develop a carbon pollution pricing system that works for their circumstances, provided it meets the federal standard.

At the request of the Yukon Government, the Government of Canada will apply the federal backstop.

Please contact the Yukon Government for additional details.

Federal System Highlights

The federal carbon pollution pricing system will be implemented in Yukon under the federal Greenhouse Gas Pollution Pricing Act with the following features:

• For larger industrial facilities, an output-based pricing system for emissions-intensive trade-exposed (EITE) industries will start applying in July 2019. This will cover facilities emitting 50,000 tonnes of carbon dioxide equivalent (CO2e) per year or more, with the ability for smaller EITE facilities that emit 10,000 tonnes of CO2e per year or more to voluntarily opt-in to the system over time.
• A charge applied to fossil fuels, generally paid by registered distributors (fuel producers and distributors), as set out in the Greenhouse Gas Pollution Pricing Act, Part 1, will start applying in July 2019. Aviation gasoline and aviation turbo fuel will not be subject to a carbon pollution price (i.e., the fuel charge will apply to these fuels at a rate of $0/litre). Information on targeted relief for rural and remote residents, farmers and fishers is available from Finance Canada.

Addressing Territorial Commitments in the Pan-Canadian Framework

The approach to pricing carbon pollution in the territories takes into account their unique circumstances, including high costs of living and of energy, challenges with food security, and emerging economies.

In recognition of the unique circumstances of Yukon and to support the implementation of the federal system in the territory, the Government of Canada has agreed to:

• Provide relief for fuels used for aviation in the territory - the fuel charge would apply to these fuels at a rate of $0/litre.
• Provide fuel charge relief for diesel-fired electricity generation for remote communities.
• Implementation date in July 2019 to align with Northwest Territories.

Canada’s Clean Growth Investments in Yukon

The Government of Canada’s Low Carbon Economy Fund is reducing emissions and creating opportunities in Yukon with over $30 million for projects that increase energy efficiency and clean our air. These projects with save people money, help create good jobs, and build cleaner and more sustainable communities.

Since 2016, the Government of Canada has allocated over $10.8 million for investments in public transit projects in Yukon. Canada has helped Whitehorse expand its fleet of busses, which is one way we’re working to make sure public transit is available for all, ensuring that people can get where they need to go, quickly and safely while reducing pollution. It’s part of the Government’s Investing in Canada Plan

In addition, over $207 million is allocated for investments in Green Infrastructure in Yukon, for projects that reduce emissions, build resilience to the impacts of climate change or provide additional environmental benefits such a clean air and clean water. The Yukon Government and Canada are working together to fund priority projects that will help reduce pollution and grow the economy.

Through the Northern REACHE program, the Government of Canada has invested over $3.8 million to support 15 community-driven clean energy projects in Yukon’s remote and Indigenous communities. One project installed solar panels in Old Crow, bringing affordable renewable energy to a remote First Nations community, saving them money on heating their homes and keeping the air clean.

The impacts of climate change are being magnified in Canada’s Arctic, where average temperature has increased at a rate of nearly three times the global average. They pose significant risks to communities, health and well-being, the economy, and the natural environment, especially in Canada’s northern and coastal regions and for Indigenous Peoples.

The Government’s Climate Change Preparedness in the North Program is helping residents of Yukon adapt to climate change by studying the impact of permafrost thaw on infrastructure like buildings and the Dempster Highway, to ensure that these structures remain safe and that they can withstand the changing climate. The program will also work to predict fire risks across Yukon to make sure people remain safe.