The Yukon Government Carbon Price Rebate Act has been amended through the Second Regulation to Amend the Carbon Price Rebate General Regulation (2023), designated as O.I.C. 2023/159. This regulation aims to adjust various factors related to carbon price rebates in Yukon, reflecting the government’s commitment to manage carbon pricing and its effects on the local economy. The primary goal of this regulation is to modify the existing Carbon Price Rebate General Regulation, which outlines the administration of the carbon price rebate in the territory.

One significant change is the replacement of Section 2 with a new provision establishing a Remote Supplement Factor set at 20%. This factor will be used to determine the amount of the remote supplement under Section 12 of the Yukon Government Carbon Price Rebate Act. This adjustment is particularly relevant for residents in remote areas of Yukon, recognizing the additional costs they may incur due to transportation and accessibility challenges. Additionally, Section 6.01 has been updated to address the Mining Adjustment Factor, which is crucial given the importance of mining operations to Yukon’s economy. The revised text specifies how the mining adjustment factor is determined based on the type of mining business a taxpayer conducts. If a taxpayer operates a specified placer mining business but does not engage in a specified quartz mining business, the adjustment factor is set at 2. Conversely, if the taxpayer is involved in a specified quartz mining business, the adjustment factor is set at 1. This distinction reflects the government’s effort to tailor the carbon rebate framework to the different sectors within the mining industry.

The amendments also have specific effective dates. The new Remote Supplement Factor will apply to personal rebate years beginning after June 30, 2024, while the adjustments to the Mining Adjustment Factor will take effect for taxation years ending after March 31, 2024. This staggered implementation allows a transition period for taxpayers and the administrative processes involved.

The intent of these regulatory amendments is to ensure that the carbon pricing system remains equitable and responsive to the unique challenges faced by residents and businesses in Yukon. By adjusting the remote supplement and mining adjustment factors, the Yukon government aims to support local economies while promoting environmental responsibility. In the broader context of carbon pricing, these changes reflect an ongoing dialogue between the government and regional stakeholders, particularly considering the economic pressures and opportunities presented by climate policies. The mining sector, a significant contributor to Yukon’s economy, is directly affected by these regulations, which may influence investment decisions and operational strategies.

The Second Regulation to Amend the Carbon Price Rebate General Regulation (2023), as outlined in O.I.C. 2023/159, refines the carbon pricing framework in Yukon. By addressing the needs of remote communities and the mining sector, the government seeks to balance economic development with sustainable environmental practices.

Yukon (OIC 2023/159) January 15, 2024