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Carbon and Greenhouse Gas Legislation in Yukon

September 2019

Carbon pricing

The federal price on carbon came into effect in Yukon on July 1, 2019, under the federal Greenhouse Gas Pollution Pricing Act (the Act). The federal carbon levy applies in Yukon at a rate of $20 per tonne of carbon dioxide (CO2) emissions in 2019 and will rise annually until it reaches $50 per tonne in 2022.

The Act has the following features:

  • For larger industrial facilities, an output-based pricing system for emissions-intensive trade-exposed (EITE) industries applies. It covers facilities emitting 50,000 tonnes of CO2 equivalent per year or more.
  • Smaller EITE facilities that emit 10,000 tonnes of CO2 emissions per year or more will be able to voluntarily opt into the system over time.
  • A charge applied to fossil fuels, generally paid by registered distributors (fuel producers and distributors), as set out in Part 1 of the Act, applies.


Yukon has been granted targeted relief on aviation fuel in the territories, diesel for electricity generation in remote communities, and partial relief for greenhouse operators. Federally exempt industries include commercial fishing and agriculture.

Federal carbon price rebate

The federal government will return revenues from the carbon levy to Yukon in the form of a transfer. The rebate framework is outlined in the Yukon Government Carbon Price Rebate. The Yukon Government Carbon Price Rebate Implementation Act (the Rebate Act) came into effect on April 30, 2019, upon assent. The Rebate Act:

  • Establishes a new revolving fund for money that the Yukon Government receives under the fuel charge provisions of the federal Greenhouse Gas Pollution Pricing Act.
  • Provides for the rebating of that money, on a revenue-neutral basis, to individual Yukoners, Yukon businesses (including a special rebate for mining businesses), Yukon First Nation governments, and Yukon municipalities.
  • Enables a special system for rebating any amounts that the Yukon Government may receive in the future under the large-scale industrial emissions provisions of the federal Greenhouse Gas Pollution Pricing Act.

The Rebate Act also implements the Carbon Price Rebate General Regulation (the Regulation). The Regulation lays out the rebate allocation amounts for businesses, Yukon First Nations, municipalities, and individuals.

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