'Critical' that carbon tax be designed for the N.W.T., revenues stay put: report

A carbon tax should be designed specifically for the Northwest Territories and revenues should stay in the territory, according to a report co-authored by Michael Miltenberger,former N.W.T. finance minister.

Miltenberger will present the report, The Northern Way, at the Arctic Energy and Emerging Technologies conference this week in Inuvik. It outlines a Northern approach to reducing greenhouse gas emissions given the federal government's introduction of a tax on carbon.

The plan to add a "price on pollution" should be adoptedinall the provinces and territories by 2018.While the three northern premiers have expressed concerns about being subject to the same pricing scheme as the provinces,Miltenberger says it's "critical" that northerners design the programs that affect them.

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"We know we're suffering the greatest impacts of climate change," he told CBC. "We need to control our own future and destiny and energy is a critical path to do that."

Miltenberger said there's "enormous economic opportunity with the transition into renewables."

"We want to be able to direct that, take advantage of that, reprofile our systems to make it work. The federal government won't have that level of concern," he said.

"When we achieved devolution we cut off 5,000 kilometres of red tape between us and Ottawa. If we don't design our own energy policy in the North, we've in effect reattached ourselves to that red tape in Ottawa."

Money should go back in the territory

Miltenberger says a carbon tax is a consumption tax comparing it to taxes placed on alcohol and cigarettes. He says it's the simplest way to deal with carbon emissions.

"It's important that the money that's raised be put back to help cure the problem that the tax was actually created to deal with which is cutting our emissions, getting us off fossil fuels," he said.

"We want to make sure the money is put back to assist communities, businesses, individuals, the resource sector to make that transition."

He points to successful energy projects in N.W.T. communities, like Colville Lake's unique solar/diesel hybrid system and Lutsel K'e, which installed a massive solar array in the community and sells power back to the Northwest Territories Power Corporation (NTPC).

The report says the Government of the Northwest Territories should have the power corporation "actively pursue" power purchase agreements with the private sector.

Miltenbergersaid those agreements tackle two big issues: energy, and the lack of economic opportunity for communities in the Mackenzie Valley area.

The report also says the territorial governmentshouldencouragethe private installation of solar and wind projects in the N.W.T., and therefore should remove restrictions and limits from NTPC's net metering program. The program allows customers who generate their own electricitythrough renewable energy installationsto feed surplus powerontothecommunity electricitygrid for credit against power bills. Butthe program islimitedto small installations and credits are capped.

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The reportcalls on the federal government to invest in more hybrid projects, and establish a $500 million/year fund for remote communities in all three territories to establish new technologies. It suggests the territorial governments could top up the fund to $700 million.

It also says a working committee of federal, territorial, municipal and Indigenous governments should be created within six months to discuss with industry representatives the most efficient and effective strategies to work toward.

"We want to work together and really coordinate in a strategic way and not just have the [federal] government keep the money ingeneral revenue," said Miltenberger.