Carbon Rebate Cuts Hit as Program Winds Down

0 Comments


The Regulation to Amend the Carbon Price Rebate General Regulation (2025) introduces changes to the Carbon Price Rebate General Regulation. The amendments focus primarily on adjusting the allocation of carbon price rebate funds and formally initiating the phase-out of the rebate program.

The changes begin with several key modifications to section 1 of the regulation. Specifically, the distribution percentages assigned to various recipients or purposes under the original rebate framework are substantially altered. Where previously a 44.5% allocation existed—likely referring to the share of rebate funds going to individual or household recipients—it is now replaced with a full 100% allocation, signaling a complete redirection of these funds to that category. Meanwhile, several other allocations, originally designated as 12.0%, 3.5%, and 36.5%, are drastically reduced or eliminated entirely. The 12.0% and both 3.5% allocations are now set to 0%, effectively cutting off funding that may have previously been directed to other sectors or administrative components of the rebate program. The 36.5% share is reduced to just 10%, marking a significant redistribution of how the carbon price revenues are to be returned or allocated. These amendments suggest a simplification or consolidation of the rebate structure, with a strong emphasis on individual or household rebates while removing or reducing other rebate categories.

Further, a new section 10 is added to the regulation, explicitly addressing the planned termination of the program. This section provides detailed interpretation guidance regarding the definition of the “personal rebate year” in section 1 of the Yukon Government Carbon Price Rebate Act. It clarifies that any reference to “in a year” applies only to years ending before 2025, and “in the next year” refers specifically to the year immediately following a pre-2025 year. This effectively establishes 2025 as the terminal year for eligibility under the personal rebate provisions of the Act.

Additionally, the regulation specifies that sections 15 and 16 of the Yukon Government Carbon Price Rebate Act—which likely deal with program administration, disbursement, or accounting procedures—are not to be applied in relation to any financial year ending after 2025. This provision cements the end of the program’s financial relevance beyond the 2024–2025 fiscal cycle.

Together, these changes point to a definitive wind-down of the Yukon government’s carbon price rebate program. The amendment redirects remaining rebate allocations more exclusively to personal recipients, signaling a final round of payments or benefits before the program is retired. The elimination of other allocation percentages likely reflects the conclusion of associated programs, services, or administrative costs. The insertion of specific transitional language around definitions and fiscal years reinforces the limited timeline of continued rebate eligibility and ensures legal and procedural clarity during the close-out period.

Yukon (74/2025) June 11, 2025
Disclaimer: Insights are for informational purposes only and do not reflect RRI’s official position or constitute legal opinion.