Approximately half of the cost of the NWT wildfires is being covered by an initial federal disaster relief program payment, with more potentially on the way.
An “advance payment” of $84.3 million will be sent to the GNWT to help cover expenses incurred during the summer’s wildfire crisis.
Minister of Emergency Preparedness Harjit S. Sajjan made the announcement on Dec. 20.
“I have witnessed firsthand the damage and devastation that the 2023 wildfires have brought to communities and the residents of the NWT,” said Sajjan. “We are committed to supporting those impacted by disasters, which are exacerbated by climate change, and keeping them safe. This advance payment will further help support the NWT as they continue to recover and rebuild better in the aftermath of the unprecedented wildfire season.”
A spokesperson for the minister confirmed the payment was only the first in a series of relief payments. The NWT wildfires reduced the GNWT’s projected budget surplus of $170 million to $5 million. The federal government said relief funding could ultimately cover up to 90 per cent of the eligible costs. Eligible costs include “evacuation operations, restoring public works and infrastructure to their pre-disaster condition, as well as restoration or replacement of individuals’ uninsurable principal dwellings, restoration of small businesses, and farmsteads and mitigation measures to reduce the future vulnerability of repaired or replaced infrastructure” — but is not limited to these categories.
Over 70 per cent of the NWT population was evacuated during the summer as out-of-control wildfires and smoke threatened public safety. Over 4.1 million hectares of land was burned by more than 304 fires from May 4 to Oct.15.
NWT Wildfire officials have repeatedly stated the blazes were caused by unfavourably dry conditions resulting from climate change.
On top of the disaster relief funding, the federal government says it’s matched donations made by Canadians through the United Way, which totalled $362,000.
The GNWT has five years to submit its final claim.
Climate change is wrecking havoc on Canadian communities and the economy. The Canadian Climate Institute estimates weather-related disasters are consuming the equivalent of the country’s gross domestic product growth by five to six per cent per year. Damage to infrastructure from permafrost thaw is expected to cost $200 million per year. Climate change is projected to be a $25 billion drag on the economy by 2025. Health officials are warning extreme heat and smoke events could put major challenges on people with respiratory issues, including Elders, children and people with pre-existing conditions.