NZ pledges $90m for climate fund

New Zealand would pay about $30 million a year for at least three years into a US$10 billion global fund for developing countries to adopt low carbon-emitting policies, Prime Minister John Key indicated in Trinidad last night.

He was speaking after the Commonwealth leaders issued a special statement supporting the British-led initiative part-way through the summit.

The fund is a carrot to get greater commitment from developing countries to lower their greenhouse gas emissions in a treaty to replace the Kyoto Protocol. That treaty expires in 2012 and required no action from developing countries.

Mr Key said the Ministry of Foreign Affairs' best estimate of New Zealand's contribution to the fund was between $10 million and $50 million "though in all probability it would be at mid-point".

Britain's share, if the fund were adopted, would be US$800 million and the United States even more.

"Let's see if it is finally adopted at Copenhagen."

New Zealand's share of the global alliance research initiative - yet to be determined - would count towards it but not all. Existing overseas development aid would not count, but budgeted future increases might, he said.

Danish Prime Minister Lars Rasmussen said yesterday at the summit he was impressed with the commitment and that would leave Port of Spain convinced it was possible to conclude an ambitious Copenhagen agreement.

UN Secretary-General Ban Ki Moon said "Copenhagen will not be a talk show".

He said the message to leaders was simple: "Stay focused, stay committed, come to Copenhagen and seal a deal - a deal that is ambitious, a deal that is equitable, a deal that satisfies the demands of science.

"We cannot afford to fail. The costs are simply too great."

French President Nicolas Sarkozy dropped in on Saturday to plead with leaders to attend the two-week Copenhagen conference, which begins on December 7. Mr Key said he was impressed by Mr Sarkozy but he is still holding out against going to Copenhagen despite the growing momentum of acceptances.

More than half of world leaders are going. Mr Key said it was confusing that some leaders were going at the start - US President Barack Obama included - and some were going at the end.

He said he would go if negotiating ministers Tim Groser and Nick Smith said a binding deal looked imminent.

"If a deal was going to be done they would give me some warning of that and I probably would go, but only on that condition. I still don't think that's likely to be a binding deal in Copenhagen in three weeks' time."

Mr Key said there was a huge debate to be had about the fairness of various offers countries were putting on the tables, the rules that should apply to any agreement, and how the rules should be enforced.

"I just don't think it is going to be physically possible for those very significant issues to be nailed down at Copenhagen.

"It doesn't mean that we can't be a lot closer towards getting a binding solution but I'll be amazed if they sign up to binding requirements at Copenhagen."

New Zealand was already showing tremendous leadership and had mid-term and long-term targets that were extremely credible - a 10 to 20 per cent reduction of 1990 greenhouse gas emissions by 2020; and a 50 per cent reduction by 2050.

Mr Key said a couple of leaders at the Commonwealth Heads of Government Meeting had said they wanted to see him there, but when asked who, joked "that's amongst us girls".

Australian Prime Minister Kevin Rudd led the Commonwealth group that issued a special statement on climate change yesterday.

The leaders said they supported a "Copenhagen Launch Fund" building to US$10 billion annually and of which 10 per cent should go to small island and low-lying coastal states.

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