China cool on hopes for climate change meeting

China is not hopeful of the climate change policy talks in Copenhagen delivering more than a political statement, Prime Minister John Key says.

Mr Key met China's Premier, Wen Jiabao, on the fringes of the East Asia Summit in Thailand yesterday.

Mr Wen was not optimistic that Copenhagen would deliver a world agreement on reducing greenhouse gas emissions.

"He was very cautious about an outcome at Copenhagen, extremely cautious," Mr Key said. "He thought it was more likely there would be a political statement rather than an agreement ... He did not specify the particular reasons why, but felt that was the best that could be hoped for."

The Association of Southeast Nations (Asean) has been calling for developed nations to do more to reduce their emissions before calling on developing nations to make sacrifices. They will make a united stand to the conference in December, but Mr Key said he was comfortable with New Zealand's position in promising to cut emissions in the mid-range of the developed world.

He was confident that the amended emissions trading scheme before Parliament would pass into law.

Mr Key is pushing a "global alliance" of research and policy to reduce agricultural emissions which make up most of New Zealand's contribution to the problem.

Mr Wen had indicated China wanted to take part and was pleased that New Zealand was advancing the issue.

The meeting with Mr Wen took place as Asean countries joined six others - China, Japan, India, Australia, South Korea and New Zealand - for the East Asia summit.

Mr Key said China was "delighted" with the progress made with the two countries' trade agreement.

Some at the East Asia summit are pushing for a pan-Asia free trade zone with Japan floating the idea of a common currency.

However, Mr Key said he felt that was not realistic in the short term.

"There would be tremendous challenges that you would have to confront ... In the case of some of the currencies they are not convertible. I think what you are seeing is a general recognition that this is a very powerful and growing part of the world and greater co-operation and co-ordination is in the best interests of the region," Mr Key said.

"Talk or consideration of currency is the very last thing we need to consider. There is a lot of progress that can be made around regulatory integration, behind border regulation, trade access - those more mundane but nevertheless very important issues."

- NZPA