Media release
17 October 2005

Greenhouse gas problem - new model needed

The Kyoto Protocol looks unlikely to last after 2012 and New Zealand should investigate other approaches for reducing greenhouse gas emissions.

Business NZ Chief Executive Phil O'Reilly says very few of the Kyoto countries will be able to meet their targets for emission reductions by the 2012 deadline.

"It seems the only countries meeting the targets will be those Eastern Bloc countries whose economies have declined after 1990, leaving them with huge carbon credits but little industry.

"This means there will be a lot of emissions trading and an inevitable increase in the price of carbon credits from countries like Russia, as New Zealand and other signatory countries struggle to meet their targets.

"The Castalia Report released today shows the hardship to the New Zealand economy from its Kyoto commitments will be immense.

"Carbon trading may be a useful mechanism to help reduce greenhouse gas emissions, but not in the way that the Kyoto Protocol specifies. We should also investigate the Asia-Pacific Partnership on Clean Development & Climate which the US, Australia, China, India, South Korea and Japan have signed up to, as it may provide an opportunity to tackle the greenhouse gas problem by developing new, clean technologies."

ENDS

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