NZ passes relaxed climate change law

Associated Press ,  Wellington   |  Wed, 11/25/2009 3:19 PM  |  World

New Zealand's Parliament passed a revised climate change law Wednesday that was condemned by a key official as likely to increase emissions of heat-trapping greenhouse gases and offer little help to the environment.

The new law passed with the support of the governing center-right National Party and two minor parties.

It was strongly opposed by the opposition Labour and Green parties for reducing the benefits of a climate change law passed last year before a change of government.

Climate change minister Nick Smith said the new law would strike "the right balance in protecting the future of our economy and our environment and ensuring New Zealanders have jobs."

He said it would also ensure New Zealand does its fair share to combat climate change "without the pretense that we should lead the world" - a reference to the previous Labour government's call for the country to become the globe's first "sustainable nation."

Under the law, polluters will be charged a fixed price per unit of carbon they emit, but will receive tradable carbon credits from the government to help offset those charges. The system - to be phased in over six years - provides easier rules for businesses involved in international trade and credits for planting forests.

As lawmakers began their final debate on the law, Parliament's independent environment ombudswoman, Jan Wright, urged them to vote against it, warning that the carbon credits, effectively paid for by taxpayers, cut the scheme's effectiveness by removing most of the financial incentive to polluters to reduce their carbon emissions.

A time limit on the government's handout of carbon credits is essential, she said in a statement.

"The amendments pass much of the cost from polluters to taxpayers," Wright said.

The law covers agriculture, unlike climate change laws in most other countries. New Zealand's farm sector is responsible for nearly 50 percent of the nation's output of greenhouse gases.

Business-friendly Prime Minister John Key has said New Zealand remains committed to helping combat climate change. But he has ruled out attending an international conference in Copenhagen next month aimed at negotiating a new climate change pact to replace the Kyoto Protocol, saying it is unlikely to reach any formal agreement.


                                                                                                                                                                                                                                                                                    

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