The new prime minister says, "In an ideal world, Ottawa would provide his territory with a full exemption from the carbon tax."

RJ explained: "I mean, ideally, a full exemption for the territory is what we hope for," Simpson, who was chosen this week as premier of the Northwest Territories, said in an interview on Sunday on the Rosemary Barton Live program, “Costs are already high, and high costs are not the solution here.”

The carbon pricing framework set by the federal government requires provinces to implement their own systems that align with federal standards, or use the federally administered system. The Northwest Territories have their own carbon pricing system, instead of relying on federal support as some other provinces do.

This means that if the territory wanted to change its system to reflect shifts in the federal scheme - such as the exemption on home heating oil - it might have to do so through its own processes. The territory had previously reviewed its system to end rebates on heating fuel in April.

But the territorial legislature was dissolved in mid-October, in preparation for an election campaign that ended after about a month, meaning it was not in session when the federal government announced its exemption for oil used in home heating in late October.

Speaking shortly after being chosen premier, Simpson said the carbon tax simply "does not work" for the Northwest Territories.

"Here in the Northwest Territories, the cost of living is high, the cost of fuel, home heating, and energy - has always been high. [If] high costs were what would drive people to use green energy and green technology, he added, “we have been doing that for years.”

But he said the lack of infrastructure, connection to southern power grids, and other factors make it difficult to implement these technologies.

He continued, "Heat pumps do not work here in this climate." Some heat pumps, such as traditional air-source heat pumps, tend to struggle in cold temperatures.

He said, "We all agree that we need to reduce our greenhouse gas emissions, climate change is real, I can tell you that we are affected here in the North more than the rest of the country," noting that he was evacuated from his home for two months this year.

The Northwest Territories witnessed devastating fires over the summer that led to evacuation orders for residents of Yellowknife and other communities, such as High River, where Simpson lives.

Simpson said residents of the area face a sharp challenge in the cost of living, adding, "Prices in the rest of Canada are approaching what they already were here, so prices here are rising more and more."

Prime Minister Justin Trudeau has insisted there will be no other exemptions for the carbon tax, and several premiers have urged the federal government to expand the exemption on home heating oil to include all types of fuels used in home heating.

Conservative leader Pierre Poilievre has been steadfast in his message: "Stop the tax." The party recently engaged in a number of procedural delay tactics in an attempt to pressure the federal government to pass a bill extending the carbon tax exemption for certain farmers and creating a new exemption for First Nations.

Poilievre said earlier this week: "You won't get relief until the tax ends."

Simpson also indicated that the territory would ask the federal government for more help to deal with infrastructure issues and climate change adaptation.

He said, "The fact is that we need major infrastructure upgrades and we cannot afford them ourselves as a territory." He pointed to the widespread evacuations over the summer and the fact that many residents spent weeks or months away from their homes, saying, "It is not sustainable."