Canada’s newest prime minister says in an ideal world, Ottawa would give his territory a complete exemption from carbon taxes.
“Ideally, complete immunity for the territory is what we would like to see,” RJ Simpson, who was elected premier of the Northwest Territories this week, said in an interview Sunday. rosemary burton live.
“Costs are already high. Higher costs are not the solution here.”
The carbon pricing framework set by the federal government requires each state to implement its own system that aligns with federal standards, or to use an existing federal system. The NWT has its own carbon pricing system, rather than relying on a federal backstop like some other states.
This means that if a territory wants to change its system to reflect changes in the federal system, such as the household heating oil exemption, it may need to do so through its own process. The territory had previously amended its heating fuel rebate to end in April.
However, the territory’s parliament was dissolved in mid-October due to election activities that were due to end in about a month. That means Congress wasn’t even in session when the federal government announced the exemption for oil used in home heating in late October.
Shortly after being elected premier, Simpson said a carbon tax simply “doesn’t work” for the NWT.
“The cost of living is high here in the Northwest Territories. Fuel, heating and utilities have always been high. [If] “Higher costs are what drives people to use green energy and green technology, and we would have done that many years ago,” he said on Sunday.
But a lack of infrastructure, connectivity to the southern power grid and other factors make it difficult to implement these technologies, he said.
“Heat pumps don’t work in this climate,” he says. Some heat pumps, such as traditional air source heat pumps, tend to perform poorly at low temperatures.
“We all agree that we need to reduce greenhouse gas emissions.Climate change is real and here in the north we are being hit harder than other parts of the country. I can say that,” he said, noting that he was evacuated.I stayed at his home for two months this year..
The Northwest Territories experienced devastating fires over the summer, prompting evacuation orders for other areas including Yellowknife and Hay River, where Simpson lives.
Mr Simpson said the territory’s residents faced serious cost-of-living issues.
“Prices in other parts of Canada are getting closer to the actual prices here, so prices are getting higher and higher here as well,” he says.
Prime Minister Justin Trudeau has vowed that there will be no further carbon tax. A number of prime ministers have called on the federal government to extend the domestic heating oil exemption to all fuels used to heat homes.
Conservative Party leader Pierre Poièvre’s message has always been “abolish taxes.” The party recently engaged in a number of delaying tactics to pressure the federal government to pass legislation that would extend carbon tax relief for some farmers and create new exemptions for Indigenous peoples.
“We can’t rest until the taxes are gone,” Poilievre said earlier this week.
Mr Simpson also noted that the territory would seek further support from the federal government to address issues around infrastructure and climate change adaptation.
“The fact is that we need major infrastructure upgrades, but as a territory we cannot afford to pay for them ourselves,” he said. He pointed to mass evacuations over the summer and the fact that many residents spent weeks or months away from their homes.
“That’s not sustainable.”