The GNWT is removing its version of the carbon tax for all consumers - except large emitters - on April 1.

"The GNWT has taken this step to align with changes in the Government of Canada鈥檚 carbon pricing policy to eliminate the federal consumer carbon tax," the territorial government explained in a release on

That means there will no longer be a carbon tax all fuels. Instead, the GNWT says it will introduce at-source rebates for all consumers other than large emitters through regulations.

The only large emitters in the territory are diamond mines, the GNWT also notes.

The impending death of the carbon tax also comes with a domino effect as the GNWT is scrapping its Cost of Living Offset (COLO), which was previously provided to help offset costs of the carbon tax. That begins on July 1. 

"Eligible NWT residents will receive the last quarterly COLO payments in April," the GNWT states.

Carbon tax revenue-sharing grants to community governments will also end in April. For the city, that could mean a difference of hundreds of thousands of dollars.

Between 2023-2024, the city received $629,035 from that grant and city spokesperson Saxon Chung noting that with the removal of the consumer carbon tax, fuel prices are expected to decrease. 

"While this could reduce fuel costs for city facilities, it also means the city will no longer receive payments from the community carbon offset grant," he added.

That grant is a GNWT program that allocates 10 per cent of gross carbon tax revenues to community governments, including the city. Since people won't be paying the carbon tax anymore, there will be more money to collect to give out.

The legislative assembly isn't in session at the moment to make a formal repeal but Finance Minister Caroline Wawzonek stated that when MLAs return to the assembly in May, the GNWT will repeal the Petroleum Products and Carbon Tax Act and amend the Income Tax Act to cut the COLO, it states.

The GNWT also says it will be talking with the federal government to determine what to do for diamond mines under the federal carbon pricing framework.

"Given the federal government鈥檚 new direction and our ability to act quickly through regulation, eliminating the carbon tax for most fuel users is a responsible step that provides immediate relief and certainty for 快盈v3ers," stated Wawzonek. "We will continue to work with Canada to develop long-term solutions that support affordability, economic growth, and environmental sustainability.鈥�