KEY POINTS:
The Government's bid to tackle climate change - issued this morning - warns individuals and businesses to reduce pollution or pay the price.
Capping greenhouse emissions would be a significant part of the seven-year plan, Prime Minister Helen Clark said.
"It is important that we put a price on greenhouse gas pollution to encourage businesses and households to become more energy efficient," she said.
The Greens say climate policy proposals announced today lack urgency and contain gaping holes.
Green Party co-leader Jeanette Fitzsimons slammed Labour for putting off the most difficult decisions about who gets free credits and how many are allocated until after the election and said Parliament would want to know those details before passing legislation.
"I expect that Parliament will be asking for a lot more answers about allocation before they pass legislation - certainly the Green Party will," she said at a press conference.
The forestry sector would be the first to be covered under the Government plan, from January next year.
Forestry owners would be able to gain carbon credits for their plantings and in a significant concession they would also retain ownership of credits planted from 1999, officials said.
There would be other incentives to plant trees with the aim to increase forest cover by 250,000 hectares by 2020.
The first noticeable effect for the public will come when liquid fossil fuels come into the regime in 2009, pushing up petrol prices.
Energy Minister David Parker said the target was to cut transport emissions in half by 2040 and would push the use of electric cars.
Electricity generation and industry would be hit by the scheme from 2010 with waste and agriculture joining in 2013.
To ease the pain some polluters will be offered credits so they are not overly penalised, while petrol companies will get no exemptions.
Mr Parker said there would be a small hit to economic growth, but action had to be taken.
The so-called Kyoto liability - how much New Zealand will exceed its international agreement to cap pollution - was now estimated to reach 45.5 million tonnes by 2012.
"If we don't introduce an emissions trading scheme, emissions will increase further - to a deficit of around 65 million tonnes," he said.
Miss Clark said climate change was one of the most important global issues facing New Zealand.
- NZPA
