Clark signs Kyoto Protocol

6.30pm

Prime Minister Helen Clark today signed New Zealand's commitment to the Kyoto Protocol, ignoring a barrage of criticism from Opposition and business sectors.

Miss Clark and cabinet minister Pete Hodgson, who convenes the ministerial group on climate change, signed the country's "instrument of ratification" for the Kyoto Protocol in a ceremony at the Beehive this evening.

They committed to reducing New Zealand's emissions of six key greenhouse gases to 1990 levels from 2008-12.

Business representatives and National MPs criticised the ratification today.

But Miss Clark said the signing was a necessity and would help give New Zealand opportunities to develop research to combat climate change.

"On a global scale, the trend of steadily increasing consumption of fossil fuels and steadily growing greenhouse gas emissions must be broken.

"There is a need on a global basis to move to a new track of increasing reliance on renewable energy sources, with steadily reducing emissions."

Miss Clark said creating renewable, low-emission energy would provide new market opportunities.

"It also will spur innovation and efficiency in the way we use energy and natural resources."

Because over half of New Zealand's emissions were caused by agriculture, local research could lead the world in tackling the problem, Miss Clark said.

She called the protocol a "coherent, workable and flexible agreement".

Mr Hodgson said the Government had used the flexibility of the protocol, and "chosen policies that will help ensure the continuing competitiveness of New Zealand businesses".

The Green Party and Greenpeace supported the signing, but both warned more was needed to phase out fossil fuel use.

Detractors said business and agriculture would suffer too much with Kyoto Protocol enforcement.

National agriculture and associate finance spokesman David Carter said the signing showed "a callous disregard for rural New Zealand".

He claimed ratification would compromise the competitiveness of New Zealand agriculture, particularly to Australia.

The Government was "jeopardising our largest foreign exchange earner by jumping in to ratify Kyoto. ... Our farmers can't afford this," Mr Carter said.

Federated Farmers president Tom Lambie said the emission tax on the productive sector would be damaging.

"Farmers are part of an integrated supply chain from pasture to plate and will have costs imposed all along that supply chain compromising our international competitiveness."

Business NZ chief executive Simon Carlaw said extra costs would hamper export efforts.

Engineers, Printing and Manufacturing Union (EPMU) national secretary Andrew Little said the emission tax should not be targeted only at selected industrial sites.

The union supported ratification, but was concerned about its impacts on small and medium-sized manufacturers.

* The 1997 Kyoto Protocol -- a treaty aimed at cutting greenhouse gas emissions worldwide to reduce the potentially catastrophic effects of long-term climate change -- is expected to take effect next year when Russia ratifies it.

The United States -- which is responsible for about a quarter of the world's man-made carbon dioxide emissions -- and Australia have declined to ratify it.

* For the Kyoto Protocol to come into force, it requires 55 per cent of developed country greenhouse gas emissions to be represented.

So far 37.4 per cent of emissions are accounted for in ratifying countries; Russia accounts for 17.4 per cent; which leaves a vital missing 0.2 per cent.

New Zealand accounts for this 0.2 per cent and this will now be added to the total, leaving only Russia to make up the 55 per cent.

- NZPA

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