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Smoke billows from the chimneys of a wood products factory - Source: Reuters -
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The government is set to start charging people for the size of their carbon footprint.
The Emissions Trading Scheme (ETS) comes into effect on Thursday and means that if you put out a tonne of carbon dioxide - enough gas to fill the average home - it will cost $12.50.
But if you plant trees that will soak up that much carbon dioxide the government will pay $25 per tonne, although at least one hectare's worth of new forest would need to be planted.
The new carbon charges will hurt oil and power companies and heavy industries like cement makers and the costs are expected to be passed on to consumers.
All Black Conrad Smith has opted for a low-carbon lifestyle to reduce the size of his carbon footprint.
"For me it wasn't the money saving or anything like that, it was a good stance and I don't mind being called a greenie.
"I think a lot of Kiwis like that part of our lives so it doesn't bother me too much," says Smith.
He says changing old light bulbs, composting and recycling have been easy every day changes to make.
Smith is part of Project Litefoot and along with six other top athletes will reduce carbon emissions at home, whenever they are not jetting around the world to compete.
Canterbury company Carbon Zero is a globally recognised ratings agency, tracking emissions for companies.
Carbon Zero estimates that Smith has cut his household carbon footprint from eight tonnes to five over two years. This has saved him 80% of the cost of lighting his Wellington home and has kept it warmer for less.
Smith sees these household savings as important for homeowners.
"It's important because much of the burden of the ETS falls on households once it kicks in this week," he says.
Climate Change Issues Minister Nick Smith says the scheme is going to deliver benefits of about 20 million tonnes.
"It's the difference between New Zealand getting there and meeting its Kyoto target and not," he says.
The minister says prices are meant to punish polluters and reward the carbon thrifty.
"The scheme does make provision for it to be stepped up in future but we will not be proceeding with ramping up the scheme unless there is significant progress in other countries.
Which means, finding new ways of using less carbon. It is already happening at some service stations that mix ethanol made from a milk by-product to create fuel that will only cost about a cent.
All other petrol will probably go up three cents a litre.
But critics say the ETS will do almost nothing to reduce global greenhouse gas emissions and could cost New Zealanders more than the government predicts.
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