NZ Commits to Climate Change Cause

NZ will introduce a carbon trading scheme next year in a bid to cap greenhouse gas emissions at the lowest possible cost to the economy. Under the plan, every industry will be allocated an agreed level of greenhouse gas emissions. Individual businesses can then choose to reduce their emissions to the agreed levels, or buy “credits” allowing them to pollute at higher levels. NZ currently emits around 45.5 million metric tons more than its target set by the UN Kyoto Protocol. “With an emissions trading system, we will get our emissions on a sustainable downward trend into the future,” said Climate Change Issues Minister David Parker. The plan is expected to shave 0.1 percent off NZ’s gross domestic product growth over five years, boost gasoline prices by 4 cents per litre and raise energy prices by 5 per cent by 2010.