As Canada’s newest clean fuel regulations come into effect, the Yukon Party official Opposition is criticizing the territorial government for failing to properly address the rising cost of living.

Yukon Party Leader Currie Dixon says the government should be fighting to exempt the territory from some of the new rules.

“The Yukon Party official Opposition supports the Atlantic premiers’ fight for the federal Liberals to rethink the implementation of the Clean Fuel Regulations and address the rising cost of living for rural Canadians,” Dixon said in a recent statement.

The new regulations put requirements on the adoption of cleaner fuels by producers, but give options to get credit for things like carbon capture, adding ethanol to fuel or supplying electric vehicle chargers.

Companies can also buy credits from other producers.

The carbon tax, introduced in 2019, put an actual price-tag on greenhouse gas emissions.

“The new Clean Fuel Standard is effectively a second federal carbon tax,” Dixon said in his statement.

In a written response, cabinet communications spokesperson Renée Francoeur told the Star the Yukon Party had failed to make climate change a priority.

“If the Yukon Party was in charge, the government would be investing in fossil fuels and building new LNG and/or diesel plants,” she wrote.

She continued by saying the current government has declared a climate change emergency and that its new climate-change strategy, called Our Clean Future, is “nation-leading.”

But Dixon focuses on the cost of these policies to Yukoners.

He points to the Parliamentary Budget Office’s (PBO’s) study from May 18 that says the new clean fuel standards will increase the price of gas by 17 cents per litre by 2030.

“The PBO adds that relative to household income, the new tax is broadly regressive and will disproportionately impact lower-income households,” Dixon said.

“The costs cover a larger share of their disposable income compared to higher income households. In addition, the costs for rural jurisdictions will be much higher than urbanized jurisdictions.”

Adding this to the 2019 carbon tax, Dixon said this means an increase of 54.57 cents per litre for gas by 2030.

Francoeur called these statements an attempt to confuse Yukoners by conflating the two initiatives, adding that the Yukon Party itself came to support carbon pricing during the last election campaign.

“Let’s not forget the Yukon Party finally embraced carbon pricing during the 2021 election after fighting against the policy for half a decade – making this statement from Yukon Party Leader Currie Dixon all the more confusing,” Francoeur said.

Francoeur also said the government is making strides on dealing with inflation’s impact in the territory.

“Our Liberal government continues to take action to help with the rising costs of living through a number of programs and rebates, including paid sick leave, raising the minimum wage, saving families $700 per month per child with our universal childcare program and extending the Inflation Relief Rebate for electricity three times – just to name a few examples,” she said.

Dixon, on the other hand, says Yukoners are facing the highest rate of inflation in Canada for the sixth month in a row, and more needs to be done.

“My Yukon Party caucus colleagues and I will continue to push for new ideas so that Yukoners can afford to pay their bills, put food on the table, and live in the Yukon we call home,” he said.

This, according to Dixon, will not be achieved unless the Yukon government joins with the other territories in at least trying to gain an exemption on home heating fuels.

“This new Liberal carbon tax will not provide any offsets to Yukoners,” Dixon said. “It is more money straight out of our pockets.”