The federal government says it will support an international ban on environmentally damaging heavy fuel oils in Arctic shipping.
The decision comes despite concerns that forcing shippers to use more expensive fuels will raise costs for northern families.
A Transport Canada study says the average Nunavut household would see an increase of up to $649 a year.
A Nunavut government spokeswoman says the territory will push for measures to help offset the cost to residents and industry.
A ban on heavy fuel oil has been sought for years by both Indigenous and environmental groups.
The fuel is a major spill risk and emits black carbon, a soot-like particle that speeds the melting of Arctic sea ice.