Kyoto risky for signatories

New Zealand and other countries that put a price on emissions of greenhouse gases such as carbon dioxide are taking on a significant commercial risk, especially until trade rivals make similar commitments, says a key business lobby group.

The Greenhouse Policy coalition - which represents New Zealand's largest employers and energy users on greenhouse gas issues - said the Kyoto Protocol was a "first modest step" towards reducing global emissions.

The protocol took effect this week.

The coalition said that for it to be effective, there was a need for developed countries such as the United States and Australia to sign up, as well as major growing economies such as China and India.

"Until the Kyoto Protocol gets broad international support ... those countries that put a price on carbon dioxide emission risk becoming uncompetitive against those that do not," said coalition executive director Catherine Beard.

- NZPA