Kyoto treaty a reality - stand by for dearer petrol, power

The Kyoto climate change treaty comes into force today, more than seven years after it was drawn up.

The 1997 international pact compels developed countries that have ratified the treaty to limit emissions of the gases blamed for global warming. It was due to become binding three months after Russia's ratification last year gave it the critical mass of support.

New Zealand has agreed to limit the net amount by which it adds to atmospheric levels of greenhouse gases to 1990 levels on average between 2008 and 2012, through a range of measures including a carbon tax.

On a business-as-usual basis, the country's emissions of greenhouse gases would exceed 1990 levels by about 30 per cent or 18 million tonnes a year during that period. The Government hopes its policies will reduce that by about 10 per cent.

In addition, Kyoto's rules allow offsetting credits for the carbon dioxide taken up from the atmosphere by trees in "Kyoto forests" - those planted since 1990 on land not already forested.

Government projections are that those "forest sink" credits will average 19 million tonnes a year, covering - but only just - the projected increase in emissions and keeping New Zealand's net contribution to man-made climate change at a level no worse than it was in 1990.

Consumers will feel the impact of Kyoto mainly through a tax on the carbon content of transport fuels and the natural gas and coal burned in power stations. Details of the tax will be released around Budget time in May but indications are it will add about 4c a litre to the cost of petrol and diesel, and about 4 per cent to residential power bills.

The other Kyoto countries are most of Europe (including Russia), Japan and Canada. The world's largest emitter, the United States, has not signed up nor has Australia, and there is no obligation for developing countries such as China to do so.

Convenor of the ministerial group on climate change Pete Hodgson said the protocol would drive significant technological changes in the years ahead. "We're proud to be doing our bit alongside 140 other nations, who have ratified. Our economy and our environment will be better for it."