The Yukon Government Carbon Price Rebate Implementation Act was tabled in the legislature today providing the framework for returning all federal carbon pricing revenues to Yukoners, businesses, First Nations governments and municipal governments.
The proposed legislation would create a revolving fund for carbon pricing revenue to be received from the Government of Canada under the federal Greenhouse Gas Pollution Pricing Act. This fund would allow carbon revenue to be rebated to all rebate groups on a revenue-neutral basis and would be reported in the Public Accounts to ensure transparency and accountability.
Starting on July 1, 2019, the federal carbon levy will be applied in Yukon at a rate of $20 per tonne of carbon emissions. The levy will increase on April 1 of each year until it reaches $50 per tonne in April 2022.
Rebates for individuals are expected to start at $86 in 2019-20, rising to $284 in 2023-24. The average individual is expected to pay less in levies than they receive in rebates as a result of the Government of Yukon, visitors and the federal government not receiving rebates.
The Act would also create a Super Green Credit to support Yukon businesses as they invest in clean energy generation as we transition to a cleaner economy.
Federal revenues from the carbon levy will be returned to Yukon from the Government of Canada in the form of a transfer. Yukoners will receive their first rebates from these revenues in October, 2019.
With this Bill we are delivering on our commitment to return all carbon pricing revenues to Yukoners. Our made-in-Yukon carbon rebate protects vulnerable Yukoners, provides incentives for green actions, and ensures that the territory remains competitive as we transition to a cleaner economy. We will continue to work on behalf of all Yukoners to ensure that the challenges we face in the North are recognized by the Government of Canada.
Premier and Minister of Finance Sandy Silver
On January 17, 2019, the Government of Yukon released the Proposed Framework for the Government of Yukon Carbon Price Rebate.
Yukoners submitted feedback on the Proposed Framework for the Government of Yukon Carbon Price Rebate between January 17 and February 4, 2019.
As a result of the review period, the government will develop additional regulations that will support the reduction of emissions of greenhouse gases by large mines in Yukon. This will be done by directing revenues from the federal Output-Based Pricing System towards investments in green energy made by large mines. These regulations will be developed in the coming years.
Through extensive negotiations with the federal government, the Yukon government has guaranteed targeted relief from the federal carbon levy on all aviation fuel in the North, and for electricity generation in remote areas. Canada has provided a full exemption to commercial fishing and agriculture, as well as targeted relief for other groups, including commercial greenhouse operators.
Carbon pricing revenues collected from Canada are expected to be $7.8 million in 2019-20, rising to $26 million in 2023-24.
In addition to the proposed creation of the Yukon Government Carbon Price Rebate Act, the Bill tabled in the legislature also includes amendments to:
- The Financial Administration Act
- The Income Tax Act
- The Fuel Oil Tax Act
- The Social Assistance Regulation