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GNWT, feds discuss new carbon pricing
Territory seeks flexibility in federal plan to reduce emissions

Shane Magee
Northern News Services
Monday, October 3, 2016

SOMBA K'E/YELLOWKNIFE
The territorial government is says the North deserves consideration as a special case after the federal government threatened to impose a price on carbon, should provinces and territories fail to address it on their own.

NNSL photo/graphic

Diesel fuel for power production is the reality for many communities in the NWT, including Jean Marie River. The territorial government is hoping Ottawa will go easy on the territory after insisting provinces must put a price on carbon to help fight climate change. - Walter Strong/NNSL photo

"The federal government has basically told us that they will be a bit flexible. What that means remains to be seen," said Environment and Natural Resources Minister Robert C. McLeod in an interview last week.

McLeod spoke to his federal counterpart, Environment and Climate Change Canada Minister Catherine McKenna, about a week and a half after taking over the environment portfolio during a cabinet shuffle.

He emphasized the high costs and challenges the North faces already.

"She understood that," McLeod said.

McKenna has been making statements that provinces and territories that don't have a price on carbon will have one imposed.

"It's mandatory that everyone will have to have a price on carbon," said McKenna during an appearance on a CTV on Sept. 18. "If provinces don't do that, the federal government will provide a backstop."

A price on carbon pollution is aimed at creating an incentive to lower emissions in various sectors, such as industry, automobiles and power production to help fight against climate change.

That could prove costly in a territory where many communities are reliant on diesel fuel-produced power.

Premier Bob McLeod spoke with McKenna Sept. 28 about the issue, according to NWT cabinet spokesperson Andrew Livingstone.

"The federal minister recognizes the uniqueness of the North and is prepared to work with the GNWT on taking the appropriate steps to work with the GNWT to make sure that the North is properly reflected in whatever carbon pricing system the federal government decided to move forward with," Livingstone said.

Staff members from McKenna's department are expected to come to the territory to learn more about the North in coming weeks, Livingstone said.

Meanwhile, the executive director of the NWT Chamber of Commerce said McKenna's comments aren't surprising.

"It comes as no surprise that they're talking tough on the need for some kind of carbon reduction program across the country," Mike Bradshaw said, adding the government since the election has been on a mission to design ways lower emissions.

Four provinces already have a price on carbon or are working on introducing one. British Columbia has a tax of $30 per tonne of carbon-dioxide emissions.

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