The business sector says the latest forecast for greenhouse gas emissions shows the government has made a billion dollar mistake which is a kick in the teeth for industry.
Revised forecasts released by Climate Change Minister Pete Hodgson show New Zealand is likely to exceed its net emissions of greenhouse gases by 36 million tonnes of carbon dioxide during the Kyoto protocol's first commitment period, 2008-2112.
New Zealand would have to buy carbon credits from other Kyoto Protocol countries to cover the shortfall.
Last year it was predicted New Zealand would be in credit by 33 million tonnes.
The main
change is that emissions from vehicles and chimneys are forecast to
increase 24% or 38 million tonnes in the period. And 20
million tonnes has been cut from the amount of carbon forests will
absorb.
Business New Zealand chief executive Phil O'Reilly says last year
the then Energy Minister, Hodgson, predicted a surplus of carbon
tax credits worth $500 million, and made much of this supposed
advantage of New Zealand being an early signatory to the Kyoto
Protocol.
But the latest forecasts show New Zealand will miss its emissions target and will instead need to buy around $500 million worth of credits to cover the shortfall, O'Reilly says.
"The development is a kick in the teeth for the business sector, which consistently argued against ratification of the Kyoto Protocol before our major trading partners, Australia and the US.
"New Zealand produces only 0.2% of world greenhouse gas emissions yet is being penalised as if we were big time polluters."
The government could have reduced the level of carbon tax to reduce the impact on business but chose not to do so, O'Reilly says.
Businesses will now be faced with the carbon tax from 2007 as well as having to help pay for the shortfall, he says.
Businesses, families and consumers will be faced with higher energy costs, he says.
The Greenhouse Policy Coalition, which represents the country's biggest employers and energy users, says the miscalculation is a double blow for the government which believed that it would be in a positive position until 2012.
Coalition's executive director Catherine Beard says businesses and consumers will probably end up footing the bill.
