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.

Hon. Steven Guilbeault, P.C., M.P., Minister of Environment and Climate Change: Thank you for your question, senator. I would beg to differ with the characterization of how we are moving forward on carbon pricing in this country. We have, in fact, given a lot of latitude to provinces and territories. Of revenues raised through the application of the carbon-pricing system, 100% is being recycled in the province or territory where those revenues are generated. In fact, we’re sending back, including to the people of your province, more money than households are having to pay through the carbon-pricing system.

Provinces can have their own system as long as they are equivalent. That is a very important element. If they’re not equivalent, if they’re not stringent enough, then the federal system applies. Were the Province of Saskatchewan willing to put something on the table that would be as stringent, they could have their own system. Certainly, New Brunswick and Ontario will have to do better, because in 2023 we are putting more stringent regulations in place to ensure that the system is more robust.