Hon. Steven Guilbeault, P.C., M.P., Minister of Environment and Climate Change: Thank you, senator. We designed the carbon pricing system to be sensitive to the particular needs of Northern residents. We return all the carbon pricing revenue to the Government of Nunavut to use as they see fit, including helping defray the cost of living. The federal pricing system does not apply to flights within the territory, nor does it apply to diesel that is used for power in remote communities.

We have ongoing discussions with the Government of Nunavut, as well as the governments of the other territories, to ensure that the measures we’re putting in place to fight climate change are not adversely impacting them.