Government of Yukon to reduce impacts of carbon pricing for aviation and placer mining

Premier Sandy Silver met with Mike Langtry and Mike Cawood of M2 Gold Mines Limited to discuss placer rebates.

The Government of Yukon has negotiated a provision for all aviation fuel. Now all flights – whether within Yukon or between Yukon and other locations – will be exempt from the levy. Under the federal carbon pricing mechanism, the agriculture industry is also exempt from the levy.

Additionally, the government has determined, with agreement from the federal government, that it will rebate Yukon placer miners all levies paid by the placer miner industry as a result of carbon pricing. This will offset the unavoidable costs related to the federally implemented carbon pricing regime.

This rebate will ensure that carbon price levies do not negatively impact the emissions-intensive and trade-exposed placer industry. It also builds on the government’s commitment to address the unique circumstances of the north in the design of a rebate mechanism that works for Yukon.

Today's rebate announcement is in addition to already announced rebates being developed for households and businesses, Yukon First Nation governments and municipalities.

The government is currently working with the business organizations to determine the details of how businesses will be rebated carbon levies. Details are expected to be announced this fall.

Since we began negotiating the terms of our carbon price agreement with the federal government, we have been clear that certain industries such as aviation and placer mining will be disproportionately affected by carbon pricing. For example, placer miners are not able to avoid the use of fossil fuels. As of now, you cannot run a placer operation on renewable energy. We have reached an agreement with the federal government that allows us to return the money levied by the carbon pricing initiative back to placer miners.

Premier Sandy Silver

In an industry such as placer mining, which is completely dependent on market prices, we can't adjust prices to meet changing costs. We’re very happy to learn that the government will rebate the levies paid as a result of carbon pricing. This rebate is a real relief to our industry and will allow us to continue to have a strong positive impact on jobs for Yukoners, Yukon businesses and the economic wellbeing of our territory.

M2 Gold Mines Limited president Mike Langtry

The carbon exemption on aviation fuel is vital to our industry. Aviation is key to outfitting, wilderness tourism and exploration and mining industries within our territory so this exemption is positive for multiple industries.

Alkan Air president Wendy Tayler

Quick Facts 
  • Emissions-intensive trade exposed (EITE) industries, such as placer mining, require large amounts of energy to operate and compete in the global commodity market and often represent a significant contribution to a local or regional economy.

  • EITE industries are industries where the price of goods produced is set by the global commodity market and where extensive energy is required to produce the goods.

  • The Government of Yukon committed to rebating carbon revenue to Municipal and First Nations governments in May, 2018.

  • Carbon pricing will be revenue neutral to Yukon, which means that all of the money returned by the federal government will be rebated to Yukoners, Yukon business and First Nation and municipal governments.

Contact 

Sunny Patch
Cabinet Communications
867-393-7478
sunny.patch@gov.yk.ca

News release #: 
18-141