Confirmation that the Government intends to ratify the Kyoto Protocol marks the biggest gamble with the New Zealand economy since 'Think Big', says Business NZ.

But Chief Executive Simon Carlaw said the impacts on the economy could last much longer.

"Only New Zealand and some EU countries are now likely to take action in response to a flawed agreement that will not for many years, if ever, bind those countries responsible for most global atmospheric pollution," Mr Carlaw said.

"The risk for New Zealand is that we will achieve neither the intended climate change outcomes nor encourage others. It's more likely that our economic, trading and export competitiveness will be damaged.

"New Zealand is now the only southern hemisphere country bound to Kyoto implementation. This extraordinary situation comes from a predetermined policy course that has resolutely ignored other options, including the climate change initiatives undertaken by our close friends Australia, Canada and the US."

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