Tougher emissions targets could curb Kiwi incomes

Each Kiwi might have to give up $60 a week in extra income if New Zealand opts for a tough approach to greenhouse gas emissions.

A weaker 15 per cent emissions cut would cost each New Zealander about $26 a week in extra income, a Government-commissioned study shows.

However, battling climate change would not significantly hurt New Zealand's economy.

If the Government adopts a 40 per cent cut in greenhouse gas emissions by 2020 which scientific reports suggest may be necessary to avoid the catastrophic consequences of climate change the country's "gross national disposable income" will still grow by 30 per cent.

Under the tougher target, each Kiwi would have to give up $60 of extra income a week, or $3000 a year, the Infometrics and New Zealand Institute of Economic Research (NZIER) study shows.

The economy would grow from $165 billion to an estimated $217b a year.

Climate Change Minister Nick Smith said a 40 per cent target was "highly unlikely" and he would not be recommending it to Cabinet.

"I think it would be an impossible target," he said. "All we'll be doing is damaging New Zealand's reputation by promoting a target that's unachievable."

Greenpeace climate campaigner Simon Boxer said the report's figures were too high and accused the Government of scare tactics.

A European study showed emissions could be reduced by 70 per cent for an "absolute fraction of the cost being quoted here", he said.

"There's much more economic risk to New Zealand of not acting on climate change than putting measures in place to reduce emissions."

The Infometrics/NZIER study assumed the rest of the world would adopt weaker targets and the Government would not bring in policies to reduce carbon emissions.

The figures were based on a "worst-case scenario" carbon price of $200.

Green Party spokeswoman Jeanette Fitzsimons said a 40 per cent cut was achievable if New Zealand made strong domestic cuts and paid for overseas projects that reduce emissions.

Labour's climate change spokesman Charles Chauvel said considering the G8 countries were debating adopting an 80 per cent emissions reduction goal by 2050, then a 40 per cent cut by 2020 should not be dismissed out of hand.

- © Fairfax NZ News