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Negotiated Greenhouse Agreements under way

Negotiated Greenhouse Agreements under way

The New Zealand Climate Change Office will begin accepting applications from firms seeking Negotiated Greenhouse Agreements (NGAs) at the end of May, Pete Hodgson said today.

NGAs provide an exemption to the proposed greenhouse gas emissions charge to be put in place from 2007. In exchange, firms commit to moving towards world’s best practice in emissions management.

NGAs are limited to firms or industries whose competitiveness is at risk from producers subject to less stringent climate change policies.

“The proposed emissions charge will encourage use of lower greenhouse gas emitting fuels and technologies,” said Mr Hodgson, the Convenor of the Ministerial Group on Climate Change. “However, as switching fuel and technology takes time, some firms will need temporary shelter from the emissions charge. By providing temporary assistance, NGAs help preserve economic activity in New Zealand while supporting international efforts to halt global warming."

Mr Hodgson today released details of the Government’s confirmed eligibility criteria for NGAs as well as a confirmed process for developing such agreements.

“Eligibility for NGAs will be tight to ensure that they are only available where a clear need exists. To ensure that agreements are available where required, stakeholders have been consulted in the development for NGAs and their feedback has informed the final policy. “

Further information on the application process for NGAs is available on the Climate Change Office’s website http:// http://www.climatechange.govt.nz.

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